Most first time home buyers know what basic steps to take when purchasing a house, including getting their finances in order, searching for a home, and negotiating a good price for it. However, many inexperienced home buyers forget that before they move into their new home, they need to protect their investment and everything in it. If you have never shopped for home insurance before, or if you just haven’t purchased a new policy in a while, here are a few tips to bear in mind during the process.
1. Know how much home insurance is going to cost. You may be dreading the thought of shelling out even more money after already spending so much on home buying fees and closing costs, not to mention the price of the house itself, but remember that home insurance covers your home and its contents in the event of fire, theft and disaster, so it’s worth it to pay the annual premium.
The average home insurance premium currently amounts to a little over $1000 a year nationwide. You can expect that amount to go up year after year.
2. Know how you will have to pay. Usually, the initial premium is paid when you first purchase the policy. It will cover your home and property for the first year. Subsequent payments may be billed directly to you, or you may opt to have some of it built into your mortgage payment. This will increase your monthly costs, but some home owners find this is the best way to make sure they have enough money to cover their payments when they are due.
3. Do your research early on and start gathering quotes as soon as possible so that you can figure out how the annual premium will fit into your budget. Also know whom you will be working with. You may opt to work with an independent insurance agency or broker, or a captive agent who represents only one insurer. Try and get quotes from both kinds of agents to have as many options as possible. Be sure to choose a policy and have it paid in full at least two weeks before your closing date, so as to avoid unexpected delays when closing on your new home.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
