What to know before you buy home insurance

September 15, 2020 at 4:00 AM

The time has come for you to start looking for your first house.

You’re excited, nervous, and a bit overwhelmed.

But don’t worry, because OWLFI is here to make sure you know what to expect before you buy a home, specifically in regards to homeowner's insurance.

There are a lot of things to consider when buying a home: location, budget, amenities, and more. Home insurance tends to take the backseat, which can be a costly mistake. With OWFLI we can help you find a great mortgage, set up a trust for your property, and help you select the perfect insurance policy for your first house. Here are the main things to remember before buying home insurance.

Get coverage as soon as possible.

Shopping around for a good insurance policy can take a lot of time and energy. Some people move into their homes without coverage in place and end up with an incident that isn’t covered. No one wants to feel rushed into a big decision, and the same goes for buying home insurance. Remember, OWLFI can help you shop around for home insurance before you close on a house, so that your property is protected from the moment you turn the key.

Remember, some incidents will not be covered.

Incidents can be a surprise for some homeowners, as they expect home insurance to cover any and all incidents or necessary repairs. But in truth, home insurance typically only covers catastrophic events. Smaller issues such as a broken pipe or faulty septic will need to be paid for out of pocket. So it’s a good idea to save some contingency for these smaller, and at times costly, repairs.

Consider the property’s location and neighborhood.

Home insurance is something you’ll always need to have, so take the time to find a neighborhood and location that isn’t high risk. For example, if you purchase a home in a flood zone, your home insurance rates could be much higher. Or if you’re opting for a great house at a lower price because it’s in a more risky neighborhood, your insurance could go up. If you partner with OWLFI we can help you find insurance and mortgage options that keep your property safe and within a reasonable budget.

Remember to insure your home and property based on value properly.

Be sure to select a plan that covers the cost to rebuild your home based on the house’s value and the land. Remember, your insurance policy should cover anything required to rebuild your home on the land selected. So if your potential home is on a historic landmark, you likely would have higher insurance rates. It’s a good idea to work with someone experienced in home insurance, like OWLFI, to review your options and make sure you’re getting an affordable policy with the best coverage.

In the end, you’ll want to find a home that is safe, secure, and well protected by a great insurance policy. And while that may seem like a tall order, we would be happy to be a part of the search for your first home to ensure you feel confident in whatever decision you make.