Insurance Guide for First Time Homeowners

It’s very exciting to own a home for the first time, but it also comes with added responsibility. If you learn about that beforehand, you won’t have any trouble navigating the waters of issues like insurance and taxes. Your homeowners policy will protect your home and the financial investment you’ve made in it, so you’ll want to be sure that you’ve got the coverage you need. Your insurance agent can help guide you, but it’s also possible to learn a lot on your own.

One of the things you should carefully consider is how much coverage you need. Many people try to insure their homes for the amount they owe on their mortgage, but the home might be worth much more than that. You should insure it for what’s called "replacement cost." That way the insurance company would pay to completely rebuild your home if it were to be destroyed. Periodically, you’ll want to review the level of insurance you have with your agent to make sure it’s adequate – particularly if home prices are on the rise and the value of your home may have jumped significantly.

Another issue to consider is that homeowner’s policies don’t always cover everything. If you live in an area where there are hurricanes, floods, or other types of natural disasters, these often require riders on the insurance policy or a special type of policy altogether. Learning about these other types of coverage can help you avoid serious financial problems in the future should your house become damaged.

It’s good to follow your agent’s lead, but it’s also good to arm yourself with knowledge and ask questions. If you do that, you’ll be ahead of the game when it comes to getting the right insurance policy for your needs. Homeowners want and need to be protected, because buying a home is a huge investment. If you insure that investment correctly, you shouldn’t have any serious worries about your financial future when it comes to your home. That’s a great feeling, and the peace of mind that comes with it can be very valuable – especially when it’s your first home.