First-Time Homebuyer’s Guide to Home Insurance

The process of buying a house can be quite a lengthy and tiring process sometimes. There are many considerations, such as your mortgage, the aesthetics and condition of the house, and the kind of neighborhood it’s located in, among others. While you might be focused on all that, there’s one little but very crucial detail you shouldn’t overlook, and that’s home insurance. If you’re a first-time homebuyer and are wondering how to buy home insurance in Florida, this guide should help you get a better idea of what homeowners’ insurance is all about.

Is Home Insurance Required to Buy a Home?

This is perhaps the biggest and most pressing question you may face as you shop for a house. For homebuyers applying for a mortgage, the bank or financial institution will likely require homeowners’ insurance as a way to protect their investment. Before the lender can even relinquish the keys to your property and fund your home loan, you need to show proof of your insurance. While home insurance isn’t at all mandated by any state, most lenders do require it, and it’s also a great way of protecting the equity in your home.

How to Shop for Home Insurance?

Before you can proceed with your home loan, you need to start looking for a Sanford insurance company to keep things going smoothly. During the mortgage approval process, the loan specialist usually has to inform you when to buy home insurance. Shopping for a policy that’s good enough for your needs also involves some research. So it’s best to start early so you can have more time to select the right policy and look into ways you can save.

You can also ask the lender about some insurance company referrals. However, you don’t have to take their word for it. It’s to compare prices, coverages, and consumer reviews, before making a final decision on what policy you should take.

What to Look For in a Home Insurance Policy?

1. Check the limits on your Personal Property and Liability Coverage

In a typical home insurance policy, all of your belongings, including clothing, furniture, electronics, and jewelry, should be covered by your policy. Now, it’s your responsibility to make sure that the limit is enough to cover everything you own. Although some items fall under a specific category with a “sublimit,” generally speaking, your insurance should cover everything.

You should also select a policy that has a liability limit that adequately covers what you have in assets in case there’s an incident in your house that injures someone.

2. Ask About Exclusions

Depending on your insurance provider, there will be a couple of things that won’t be covered on a standard policy. These are exclusions, and you must be aware of them before you take out any policies from an insurer. Exclusions come in the form of earthquakes, landslides, mudflows, and flooding. If you're at risk for a peril that isn't covered on your policy, ask your home insurance agent or company if there's an option to purchase protection for excluded incidents.

3. Understand Your Deductibles

Finally, when buying homeowners’ insurance for the first time, your deductibles for property damage are also one of the details you should focus on. This is a portion of the claim you’re responsible for, so make sure the deductible amount is within your budget. Home insurance deductibles don’t always come in a set dollar amount like car insurance. Sometimes, a percentage may apply for wind damage or other select perils.

Conclusion

Buying a house is never easy, and one of the biggest concerns about it is finding the right homeowners’ insurance policy for you. This guide gives you a brief overview of what to expect and what to watch out for when taking out an insurance policy.

Sanford Insurance Center offers a variety of policies, including home insurance, renters insurance, and even auto and mobile home insurance. We serve all of Florida, and we make sure that all your home and personal belongings are protected. If you’re ever in need of home insurance in Sanford, FL, we’re more than happy to help. Contact us today to get a free quote.