What First Time Home Buyers Need to Know About Home Insurance

Purchasing your very first home can be an exciting moment in life.

At the same time, first time home buyers should also especially aware of the not-so-exciting but still crucial areas of the home buying process. 

Home insurance is, undoubtedly, one of the most important parts of the process to consider. For first time homebuyers, it can be difficult to know where to even start. With so many companies and insurance options available, it can be very easy for them to choose the wrong policy or end up actually purchasing more than they need. 

The most common mistake for new homeowners is holding off on buying insurance until the last minute. Even if you haven’t closed yet, doing the research on home insurance now can help to make the entire process so much easier.  

Let Quick Quality Quotes give first time home buyers a little bit of insight on what to look for when purchasing home insurance. 

What Does Home Insurance Cover?

The standard home insurance policy will cover the following areas:

  • Dwelling Coverage

Covers the physical aspects of your home (i.e. wiring, plumbing, heating/cooling systems, etc.) and attachments (i.e. garage). Home insurance will cover damages caused in the events of: 

  • Theft
  • Damage from a fire or smoke
  • Hail
  • Windstorms or a lightning storm
  • Damage that was caused by a moving vehicle
  • Damage from weather

 

  • Possessions

Covers your personal property and high-valued contents such as electronics, furniture, and appliances. 

  • It gives you the option to choose between the cost of replacement or the cash value that it was worth at the time when it was damaged/stolen.
  • An additional rider can be added for additional personal valuables such as jewelry, firearms, paintings, important documents, etc. 

 

  • Liability:

This covers you when a visitor is injured on your property.

  • Can help to cover both legal settlements and fees (to a certain extent)

 

  • Additional Living Expenses (ALE):

Covers the expense of living away from your damaged home while it’s in the process of being repaired, which includes compensation for: 

  • Temporary shelter such as hotel or motel rooms, rental homes, etc.
  • Transportation expenses and/or increased mileage
  • Property storage
  • Meals 
  • Laundry 
  • Pet boarding (if applicable)

What Home Insurance WON’T Cover

While home insurance does help to protect you from a lot of damages, there are things your policy will not cover. These include but are not limited to:

  • Earthquakes
  • Sinkholes
  • Accidents from a trampoline, swimming pools or any other related attractive nuisance
  • Sewer backups
  • Molds
  • Construction damage
  • Damaged memorabilia (unless it is included in a separate rider)

First time home buyers should be well aware of the fact that home insurance does NOT cover flooding. In order to protect your home, you will need to purchase additional flood insurance. This can be especially important for Texans living along the coastal areas and other regions known for flooding.  

Key Factors When Determining Rates

In order to find a rate that works best, the insurance companies must first look into the following criteria and factors to determine a final price on your policy.

  • The home itself: The overall value of your home and the potential cost of rebuilding it.
  • Location: If the home you are purchasing in within a flood zone, for instance, your premium will bound to be higher. Any locations where natural disaster can befall your home is going to boost up prices. 
  • Credit score: This will be used to determine your rate.
  • Deductibles: The amount you need to pay out-of-pocket before your policy comes into full effect. A higher deductible means a lower rate.
  • Levels of coverage: More coverage is equal to higher rates.

Searching for the Right Home Insurance Quote 

Before settling on an insurance company, it is important to seek advice from a trusted expert to determine what type of policy and coverages you will need. Since not all homeowners insurance policies are created equal, taking the information you just read into account will help you find the right policy. 

To get started on finding the right insurance at the best price, fill out the form below. Our team at Quick Quality Quotes will back out to you as soon as possible.

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