5 Tips For First-Time Home Insurance Buyers

Buying home insurance for the first time can be a daunting process if you do not know what you need to be doing. If you are going through a lender to get into your home, they will demand that you show proof of a good policy. If not, you should still get a home and contents policy that protects you against damage or theft. One that will not only cover you if a claim ever needs to be filed but also protects the lender (making sure they get paid if the house is destroyed.)

There is no need to worry, though, because you have come to the right place. Our experts have offered 5 tips for first-time home insurance buyers that will ease the process for you.

  1. Home Inspection – Even if the house has just been built, you need a professional inspection to get its value. The current market values are what the insurance carrier will go with, not what you paid to have it built, and not what the market value should be. They will need proof of the value from a licensed professional to verify the numbers.
  2. Bundle – You will want to go through an insurance carrier that will allow you to bundle all your policies into one large umbrella contract. This will make it easy for you to file claims if needed, plus it should give you some decent discounts on all of your policies. The more money you bring into their company, the better the deals will be that they give you.
  3. Compare – The single most important thing that you can do is compare the policy choices that you have. Go to iSelect to compare insurance home and contents policies. They will do all the hard work for you. The platform they use will take in some of your basic information and send you offers from all their partners willing to work with you. Look through them all and pick some of the best ones. Do not simply pick the ones that are the cheapest because they are not always going to be the best ones. Read through the entire offer and compare the cost and coverage.
  4. Liability Insurance – No matter what you are told or what the insurance carrier offers you, make sure that the policy that you go with has a good liability coverage plan. People today love to sue other people for slip and fall accidents. Even if you have your property posted with “No Trespassing” signs, you will still not be safe. If a salesperson comes to your door and falls, if the children have friends over to play with, or if your family comes to visit, they are all potential accidents waiting to happen. Accidents that could lead to a lawsuit being filed against you. Always play it safe and have a sizeable payout for liability claims.
  5. Know What You Can Afford – Even if you have decided to have the best policy available, you need to go to your budget and make sure you can afford it. Your budget will show you how much you have available to spend on your policy, which you never want to go over. If you do not have a budget, you need to do it before you move forward in the process.

These 5 tips for first-time home insurance buyers will guide you on your way. If you are unsure what an offer is saying or are skeptical about something on the contract, ask questions. Never be afraid to ask questions. If the insurance carrier you are planning on using is not willing to answer your questions, or if you cannot get ahold of them to ask, you should move on to your second or third choice.

If none of them work for you, keep looking. There are plenty of companies to choose from, so you should never settle for one. It is your house, and you are paying for a home and contents policy, so make sure it is what you want.

Carl Bennett

With a 23-year career in the insurance sector, Carl Bennett is a London School of Economics graduate specializing in Risk Management. He began his career in corporate insurance before shifting his focus to educational writing in 2013. His transition from a senior insurance analyst to a content expert in 2015 has enriched various websites since he came aboard in 2017. He is passionate about wildlife photography and actively participates in environmental conservation initiatives. He is also a marathon runner and enjoys chess in his free time.

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