Insuring A New Home? 3 Things To Consider
Purchasing a new home is a major financial commitment. When you go to buy a new home there are a lot of things to consider, including purchase price, finding a good deal on a mortgage loan, and any improvements that may need to be made before moving in. During this time it's easy to drop the ball when it comes to certain aspects of home ownership. One of the things that you may find yourself neglecting until the last minute is home insurance. While it may be tempting to make a quick decision, there are a few things that you should consider when insuring a new home.
Lender Requirements
Unless you are purchasing a home in cash, chances are your lender will require that you have homeowners insurance before the deal is finalized. The reason for this is that until you pay off your mortgage, your home is still an investment for the bank. In order to protect their investment, most lenders require you to have insurance until the loan is paid off. Requirements can vary from lender to lender. However, enough coverage is needed to replace the home and cover the mortgage.
How Much Coverage
While lenders do have certain requirements that you need to fulfill, you will also likely want to add additional coverage to your policy. Liability coverage is one area in particular where you may want a more robust policy. Adding an excess liability policy can keep you protected if someone or their property is injured in your home. You may also want to consider beefing up your replacement coverage. This coverage covers the cost of construction in case your home is destroyed. For any expensive items in your home, such as jewelry, you may also want to add special riders to cover them to your home insurance policy.
Potential Discounts
When shopping around for a policy, it's a good idea to ask insurance companies about any discounts that they may offer. Simply adding a home security system can get you a discount up to 10 percent. Some insurance companies also offer senior discounts and may give you a deal if you have multiple insurance policies with the company. Having your auto, home, and other types of insurance under one company can also be useful since all of your information is in one place.
Insuring a new home is something that many people find themselves doing last minute after purchasing a home. When it comes to homeowners insurance, it's important to know what your lender requirements are. You should also consider whether or not you need additional coverage and consider looking into potential discounts.
Get in touch with a company like Angel Auto Insurance to learn more.
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