Insurance Tips for First-time Homeowners

Being a first-time home buyer can be an overwhelming process, and there are many steps to complete before moving day. One critical step in the process is purchasing homeowners insurance. The following tips and information are essential for first-time homeowners to know.

What Does Homeowners Insurance Cover?

Homeowners insurance policies may provide coverage for the following:

• Property damage to the dwelling and other structures
• Personal property loss
• Personal liability
• Additional living expenses

Policies vary, but homeowners insurance typically covers losses from the following perils:

• Fire
• Lightning
• Smoke
• Windstorms
• Hail
• Explosions
• Theft
• Vandalism
• Falling objects
• Riots
• Damage from vehicles

Do I Buy Homeowners Insurance Before Closing?

A mortgage lender will most likely require proof of homeowners insurance before you can close on your home. As soon as you sign a contract to buy a house, you should start shopping around for a homeowners insurance policy.

Is Homeowners Insurance Paid in Advance?

If you pay your homeowners insurance directly and not through an escrow account, you can typically pay monthly, quarterly, semiannually or annually. However, your lender may require you to have an escrow account to help ensure there are enough available funds to pay for your insurance. Payments to an escrow account are typically part of your monthly mortgage payments and then your mortgage lender will generally pay for your insurance every year.

How Much Home Insurance Do I Need?

You should consider having enough insurance to help cover the cost of rebuilding or repairing your home if an unexpected incident occurs. You may also need coverage to replace or repair your belongings, protect yourself against liability claims, and cover living expenses if you cannot live in your home while repairs are made after a covered event. Your mortgage lender may also require you to have a certain amount of coverage.

How Much Does Home Insurance Cost?

Homeowners insurance costs vary greatly depending on several factors, including the following:

• Where you live
• The price of the house and the cost to rebuild it
• The amount of coverage needed
• The home’s age and condition
• Home security and safety features
• The buyer’s credit history

Homeowners Insurance in Phoenix

If you want to learn more about homeowners insurance, contact Above All Insurance. We can help ensure you have the coverage you need for your home.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.