Tips for Insuring Your First Home

Posted by Sam Pouliot on May 7, 2015 12:30:00 PM

 

Being a first-time home buyer is not an easy task. There is a lot that goes into buying a home, and as a first-time buyer you may feel lost at times; or all the time. Home_Insurance_dreamstime_xs_49673542 

Possibly the most difficult aspect of being a first-time home buyer is figuring out exactly what coverage you need and want for your new Massachusetts home insurance policy. Don't worry though, we got you covered. Here are some easy steps to follow and what you should look out for as you put together your first homeowners policy.

Insuring your first home

  1. Make sure your insurance score is in check: Your insurance score plays a huge role in buying a house. If you don't already know, your insurance score does in fact include your credit score, which is very important in obtaining a homeowners policy. But, there is more to an insurance score than just your credit score. Your insurance score will also include any previous claims you have made personally, or any claims that have been made on the property of which you are looking to purchase. A very good insurance score will help you get the best loans with the best rates, but if your score is not as good then you will have a difficult time getting the best rates. If your score is very bad then you may want to consider ways to improve it before you buy your first home.
  2. Dwelling Coverage: The dwelling coverage on your home is going to cover rebuilding and repair costs if your home is damaged or destroyed by a covered peril. We always suggest that any home buyer invests in a policy that has full replacement value on the home as well as an all-risk policy. An all-risk policy will cover a broad spectrum of possible causes of loss unless the policy specifically excludes them. A policy that only covers limited perils may cost less, but also puts you at risk of not being covered if you experience a loss. The money you save by avoiding an all-risk policy won't even compare to how much you have to pay out of pocket if you are not covered.  
  3. Additional Coverage: Something to keep in mind is that even an all-risk policy does not cover every possible loss. Events such as floods, earthquakes, and termites are just a few examples that are not typically covered by most policies. Talk to your insurance agent to see if you are at risk of a loss that may not be covered on your policy. If so, you can endorse additional coverage onto your homeowners policy to make sure you are protected.
  4. Bundle your Home & Auto: Everyone should have a chance to save money wherever they can. Buying your first home is a massive investment, and the easiest way to save yourself some  money is by bundling your Massachusetts home insurance and auto insurance together. By doing so, you can save up to 10% on your home and up to 20% on your auto (that's a possible 30% in savings!).

 

The truth is that no single homeowners policy is going to fit every first-time home buyer. All homes are different, which is why here at Mid-State we work to make individualized solutions that are the best for each individual customer. Our best recommendation for a first-time home buyer is to talk to your insurance broker and figure out what  coverage you need/want, and what coverage may not be necessary. Click on the link below to view our free first-time home buyers guide.Free Home Buyer's Guide

Topics: home insurance

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