Call Us 719-593-5814 ☰ ˟
Logo
Call Us 719-593-5814 to get your personalized insurance quote
  • Home
  • Products
    • Home & Auto Insurance
    • Auto InsuranceImage of right arrow
      • Liability Coverage
      • Comprehensive Coverage
      • Specialty Auto Insurance
      • Uninsured & Underinsured Motorist Coverage
      • Collision Coverage
    • Home InsuranceImage of right arrow
      • Property Insurance
      • Homeowners Liability
      • Mobile Home Insurance
      • Renters Insurance
      • Scheduled Property Insurance
      • In-Home Business Insurance
      • Landlords Insurance
    • Other Personal InsuranceImage of right arrow
      • Identity Theft
      • Personal Umbrella Insurance
    • Recreational Vehicle InsuranceImage of right arrow
      • Boat Insurance
      • Motorcycle Insurance
      • Motorhome Insurance
      • ATV Insurance
      • Snowmobile Insurance
    • Coverage for Your BusinessImage of right arrow
      • Bonds
      • Business Owners Policy (BOP)
      • Commercial Auto Insurance
      • Commercial General Liability
      • Commercial Property Insurance
      • Commercial Umbrella Insurance
      • Crime Insurance
      • Cyber Liability Insurance
      • Inland Marine Insurance
      • Loss Control Insurance
      • Professional Liability
      • Workers Compensation
  • Get a Quote
    • Auto Insurance Quote
    • Bond Request Form
    • Business & CommercialImage of right arrow
      • Business Owners (BOP) Quote Form
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
    • Homeowners Insurance Quote
    • Umbrella Insurance Request
    • Workers Compensation Insurance Quote
  • Resources
    • Refer a Friend
    • Insurance Glossary
    • Important Links
  • Our Agency
    • About
    • Our Staff
    • Our Locations
    • Privacy Policy
  • Contact Us
Home > Blog > A Guide to Home Insurance for New Home Buyers
THURSDAY, DECEMBER 29, 2022

A Guide to Home Insurance for New Home Buyers

When buying a new home, there are many things to consider, such as the area you want to live and how close it is to places such as hospitals and schools. You also want to make sure your home is big enough to suit your family and affordable so that you have extra income beyond your mortgage and other bills.

One important aspect that some homeowners overlook, however, is home insurance.

If you are searching for a home, you will generally be required by most lenders to carry home insurance to cover the cost of your mortgage. This is so the lender has protection in case something happens to the home. However, not all home insurance policies are created equal.

Coverage under home insurance can vary depending on your insurer and their offerings. Therefore it is important to shop around between multiple insurers or find an independent agency that can do the shopping for you.Modern house

Before you start shopping for home insurance, check your credit rating. Your credit rating can raise or lower your interest rate depending on if it’s good or bad. In general, you want to have a 750 or higher for very good credit. If you have less than 600, it’s going to be harder to find a cheap home insurance rate. You can work to improve your credit through paying bills and investing in a credit card.

What Does Home Insurance Cover?

In general, a basic homeowner’s insurance policy covers:

Dwelling: Dwelling coverage helps pay for repairs or a rebuild when the dwelling (home) is damaged by one or more listed perils. Covered perils include fire, hail, and tornadoes.

General liability: General liability steps in when bodily injury or property damage occurs to another person while on your property.

Pet liability: Pet liability steps in if your pet causes bodily injury or property damage to another person.

Other structures protection: Dwelling coverage only pays for repairs on your home and its attached structures. Structures such as detached garages and fences are covered beneath other structures protection.

Additional living expenses (ALE): ALE helps pay for living expenses if you must live somewhere else while the house is under repair.

 

An additional coverage you may want to consider us a personal property endorsement/floater. Some belongings aren’t covered under your typical homeowners’ insurance. Expensive items like jewelry may not have coverage under your policy. A personal property endorsement or floater helps pay for expensive or rare items that are lost or damaged due to a peril.

What Does Home Insurance Not Cover?

Homeowners insurance typically doesn’t cover flooding. You can purchase a separate flood policy if your area is prone to a lot of rain or floods to protect your home from possible damages. Earthquake damage is also usually excluded. Speak to an insurance agent about adding additional coverage to your policy.

Understanding Home Insurance Premiums

There are many factors that affect your home insurance premiums. Factors that may cause your home insurance premiums to be higher (besides the general market) include:

Living close to a coastline. Weather damage is more likely closer to the coastline, which usually costs more to insure. You may also have to purchase a hurricane or windstorm deductible.

Moving into an older home. Older homes can cost a lot to insure since they often require costly repairs and can be seen as less safe if they haven’t been maintained.

General condition and construction. A home with a roof that isn’t fire or hail resistant may cost more than homes with roofs that are. The construction also matters. If the foundation is weak, you’ll have to bring your home up to code and it may cost more to insure.

Swimming pools. Structures like swimming pools typically require more liability insurance since it’s an additional risk of injury.

 

Be sure to have the new home inspected thoroughly for any possible areas of concern and check the loss history report to see any claims that were made in the past.

Choosing Your Home Insurance deductible

Your home insurance deductible is how much you must pay out of pocket after a claim. For example, say a storm causes $2,000 in damage to your home and your deductible is $500. This means you must pay $500 toward repairs before receiving compensation for the remaining $1,500. You can raise or lower your deductible depending on your needs. A higher deductible can save you money by lowering your monthly premiums, but it also means paying more out of pocket after an accident.

If you aren’t sure where to set your home insurance deductible, be sure to ask an insurance agent about your deductible options. Choosing the right home insurance policy is crucial for protecting your new home and everything in it, so ask questions and shop around to find the best coverage.

Get a free quote today. Call Legacy Insurance Services at 719-593-5814 for more information on home insurance.

Posted 3:42 PM

Tags: home insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • auto insurance(5)
  • home insurance(4)
  • workers compensation insurance(3)
  • business owners policy(3)
  • business insurance(2)
  • general liability insurance(2)
  • cyber liability insurance(1)
  • storm damage(1)
  • bop insurance(1)
  • loss of income(1)
  • homeowners insurance(1)
  • renters insurance(1)

View Mobile Version
Contact us
Colorado Springs Office | 719-593-5814 13540 Northgate Estates Drive, Suite 210 Colorado Springs, CO 80921
Glen Burnie Office |  719-593-5814 307 Rain Water Way | Glen Burnie, MD 21060
Quick Links
Home Get a Quote Customer Service Payment / Claims About Us Blog Contact Us
Locations
Colorado Springs Office
13540 Northgate Estates Drive, Suite 210
Colorado Springs, CO 80921

P: 719-593-5814
F: 719-388-2075
Glen Burnie Office
307 Rain Water Way
Glen Burnie, MD 21060
P: 719-593-5814
F: 719-388-2075



Google Icon


© Copyright. All rights reserved.
Powered by Insurance Website Builder