You did it. You pulled the trigger and finished the paperwork for your new home. Congrats! That’s a huge step. You won’t move in for 1-2 months, so you have some time to get things sorted out and prepare for the big move.

 

Then it hits you – you’ll need to get proper home insurance for the first time. You’ll want your policy to start before you ever move in. So, it’s time to do your research and make sure you get an ideal policy for your home and family.

 

That’s where we come in. As insurance experts, we’re here to help you navigate the seemingly murky waters of the home insurance world. So let’s dive in.

 

Home Insurance for First-Timers

 

This guide is simply designed to offer you some friendly advice and tips of the trade. For the most detailed information, you’ll still want to speak with an insurance agent.

 

So here are a few home insurance tips for first-time home buyers:

 

• What’s Most Important?

 

Do you just want the cheapest coverage available? Or does service and coverage option play a role in your buying decision, too? Figure these things out before shopping around. The home insurance market is vast, and you need to know what you’re looking for before you start shopping around.

 

• Shop Around

 

First and foremost, you’ll want to shop around a little. Call your insurance agent. Get some quotes online. Talk to friends and see where they get their homeowners insurance from. Homeowners insurance can be expensive, so it’s important to look around and find a good deal you can.

 

• Check Your Credit

 

You probably took your credit score into account when you went home shopping. The better your credit, the better deal you could get on a home mortgage. The same applies to home insurance. If you have great credit, you’ll get better home insurance pricing, as insurers use your credit score, too.

 

• Consider a Bundle

 

While there’s no guarantee the greatest home insurance quote will come from the current insurance company you work with, there’s a good chance it may. Insurance companies give heavy discounts to clients who combine coverages with them. Insurance companies love to reward loyal customers. So, make sure to ask about bundling before comparing prices from competitors.

 

• Understand Risk

 

If your home is in an area generally shielded from natural disasters, then your policy will be cheaper. If your home has a high likelihood of being damaged, then you’ll end up paying more for a policy. For example, if your home is in Tornado Alley, then you can expect to pay more for home insurance. If you live in California, you’ll need earthquake insurance to go along with home insurance. If your home could flood, then flood coverage is needed, too.

 

• Age of Home

 

If you’re insuring an old home that has a plethora of potential problems, then you can expect to pay more for insurance. A new home will always find lower premiums than an older home in the same price range – if all other factors are similar.

 

• Understand Dwelling Coverage

 

Make sure you don’t skimp around on any form of home coverage. For example, you should always pay attention to how much dwelling coverage you have with your policy. You’ll need enough dwelling coverage to completely rebuild the structure of your home – should it get destroyed by a covered peril. However, most home insurance policies don’t contain enough dwelling coverage. You’ll have to request and pay for a higher limit.

 

• Always Ask Questions

 

Don’t just sign up for a home insurance policy without asking a variety of questions. You’re purchasing coverage for your most important assets, so it’s important to do your due diligence. Make a list of important items you need answers before speaking with an agent or buying a policy.

 

• Use CLUE

 

Last, but not least – check out CLUE, or the Loan Underwriting Exchange. You can use the service to see a list of claims over the last seven years for any home. The service will show you what potential problems your home may have, along with what an insurance premium for the house may cost you.

 

Home Insurance First-Time Buyers Guide

 

You got the biggest step out of the way. Now, focus on the details and find the perfect homeowner’s insurance policy. Use the tips above to help you as you navigate the world of insurance for your home. Just make sure you get on the phone and speak with some agents, too.