{"id":591,"date":"2015-08-06T23:32:23","date_gmt":"2015-08-06T23:32:23","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=591"},"modified":"2025-01-20T15:01:19","modified_gmt":"2025-01-20T15:01:19","slug":"4-things-first-time-buyers-should-know-about-home-insurance","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/homeowners-insurance\/understanding-homeowners-insurance\/4-things-first-time-buyers-should-know-about-home-insurance\/","title":{"rendered":"4 Things First-Time Buyers Should Know About Home Insurance"},"content":{"rendered":"

There\u2019s no doubt that buying a home can be overwhelming \u2013 which is why some buyers may underestimate the importance of homeowners insurance<\/a>. First-time buyers are especially prone to giving minimal thought to the insurance buying process and making sure they have adequate coverage to protect their new investment and its contents. That\u2019s why \u2013 before you sign on the dotted line \u2013 you may want to heed the following 4 tips to guide you safely along:<\/p>\n

1. Contact at least three companies to compare coverage.<\/h2>\n

Because your home won\u2019t actually be your home until the loan is paid off, your mortgage lender will in all likelihood require you to have homeowners insurance. It\u2019s non-negotiable. You may even be required to purchase additional insurance \u2013 like flood insurance if the house is situated in a risk area.<\/p>\n

Luckily, you aren\u2019t forced to buy from a particular insurance company<\/a>. The advantage is \u2013 you can compare coverage, price and customer reviews. But, be sure to buy the right type and amount of coverage. While value is important \u2013 avoid rock-bottom premiums. Also, try to choose an insurance company that is known for having an excellent customer service department. Since you\u2019ll mainly
\ndeal with your insurer during times of disaster, the last thing you want during those times is aggravation.<\/p>\n

2. Escrow your insurance payments with your mortgage payments.<\/h2>\n

By opting for an escrow or impound account, your homeowners insurance payment and usually your property taxes will be included in your mortgage payments. Lenders often prefer this option because it lets them know your insurance premiums and taxes are being paid, and their investment is well protected.<\/p>\n

3. Make sure you’ve got adequate coverage.<\/h2>\n

The most important part of homeowners insurance is the level of coverage. Of course, you want to avoid paying for more than you need \u2013 but always be sure you have enough. Know your property\u2019s value and review it annually. Some insurance companies may undervalue your home, creating a situation that can be difficult to resolve in the event of a total loss.<\/p>\n

4. Understand the details of your policy.<\/h2>\n

Sounds simple, but you\u2019d be surprised at the number of homeowners who haven\u2019t read their homeowners policy. After a disaster is not the time to pull out the reading glasses.<\/p>\n

It\u2019s not enough to just seek the right policy level. Before you make a decision, understanding the following homeowners insurance terms could be very helpful:<\/p>\n

\u2022 Deductible<\/strong> \u2013 This refers to the amount of money you must pay out of pocket before your insurance kicks in; the higher the deductible, the lower the annual premium. And, vice versa.<\/p>\n

\u2022 Liability Coverage<\/strong> \u2013 This is coverage that will pay medical or legal bills if someone is hurt on your property, usually due to negligence.<\/p>\n

\u2022 Personal Property<\/strong> \u2013 Sometimes called the contents of your home, this is tangible property such as furniture, electronics and clothing.<\/p>\n

\u2022 Premium<\/strong> \u2013 This is the price you pay for insurance, usually annually or monthly.<\/p>\n

\u2022 Replacement Cost<\/strong> \u2013 This is the kind of insurance that pays the full cost of replacing your dwelling or personal property, up to a maximum dollar amount. Most standard policies offer replacement cost, but you want to be sure the maximum amount is high enough.<\/p>\n

\u2022 Actual Cash Value<\/strong> \u2013 This type of policy gives you the current cash value (with depreciation) for personal property or your dwelling.<\/p>\n

\u2022 Sub-Limits<\/strong> \u2013 Homeowners insurance policies will generally include limits, but they\u2019ll typically also have sub-limits. For example, the sub-limit on personal property for a $500,000 policy would typically be $250,000, or 50 percent of dwelling coverage.<\/p>\n

\u2022 Riders<\/strong> \u2013 These are policies you can include on your overall insurance policy to cover specific items. For instance, expensive antiques, jewelry and artworks are often covered under their own rider because they\u2019re too valuable to be covered as regular personal property.<\/p>\n

Remember, if something happens to your home, homeowners insurance<\/a> can make or break you \u2013 and you don\u2019t want to end up on the short end. Be sure you understand terms and conditions of your policy to avoid confusion later. If you\u2019re unclear about something, ask questions to ensure you\u2019ve got the right coverage and amount to fully protect your home and belongings.<\/p>\n

Now that you have a better understanding about the benefits of homeowners insurance, it’s time to get a policy. Freeway Insurance offers the best policies from a wide assortment of insurance providers to ensure you that you’re getting the best plan for your money. Call Freeway Insurance at (800) 777-5620<\/strong> to get your free, customized quote or get your\u00a0free homeowners insurance quote online.\u00a0<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

There\u2019s no doubt that buying a home can be overwhelming \u2013 which is why some buyers may underestimate the importance of homeowners insurance. First-time buyers are especially prone to giving minimal thought to the insurance buying process and making sure they have adequate coverage to protect their new investment and its contents. That\u2019s why \u2013 […]<\/p>\n","protected":false},"author":1002628,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63],"tags":[104],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/591"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002628"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=591"}],"version-history":[{"count":5,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/591\/revisions"}],"predecessor-version":[{"id":6942,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/591\/revisions\/6942"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=591"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=591"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}