Buying a home can be an exciting time for you, but it can also be very daunting because of everything you have to do. One aspect of the process you may not know about is insurance. Insurance is not something you want to spend a ton of time on, but you will need to schedule a few hours into your already overbooked planner. A little time, along with some effort, will supply you with an excellent home insurance policy at a price that does not break the bank.
You may not even know where to begin looking for a suitable insurance carrier. That is why you need to read the 5 tips for first-time home insurance buyers that follows. First, though, you need to know where to go. Online platforms that compare companies and give you multiple offers are the best place to go. Companies like iSelect will take some information and match you with a number of their partners willing to work with you. Plus, when you go this route, you will find that the time needed to complete the task is very little because they do all the legwork for you.
Previous Insurance Coverage
You are probably already familiar with the idea that if you have had insurance in the past, your rates for a new policy will be lower. That is how it works for most insurance companies, including ones offering you a first-time home insurance contract. But how are you supposed to show proof of previous insurance when this is your first home?
- Renters insurance – While saving up to get into your first home, you should have had a renters insurance policy. This is proof of previous insurance, even though it is not for homeowners. It is not only a good idea to have it in case you need to file a claim, but to show the lenders and the insurance companies that you are a responsible renter. This means that you will be a responsible buyer.
- Insured Under Someone Else – If you have ever lived in a home with homeowners or renters insurance, check to see if the company you are planning to go through honors that as previous insurance. Some will take it into account, and others will not.
1. Bundle Your Policies Into One
Take the time to bundle all of your policies into one large policy. You will be able to save money on all of them. Your home and contents insurance contract is not the same as the other types that you will have, so you will not be able to put them under one policy. But you can put them all into one folder, or under one umbrella, as they say.
2. Do Not Wait
You do not want to wait until the last second to get your insurance policy up and running. As soon as you know the house is yours, get online and get that home and contents policy active. Once you start moving in, you will not even think about anything else, so get it done before you get to that stage of the process.
3. Compare Insurance Carriers
It may be easier to continue going through your current insurance agent, but if you do, you may not be getting the best deal. Use an online comparison platform, such as iSelect, and find the best policy at a price that does not break the bank. Never assume that the cheapest policy is the best one. Not all policies are the same, and not all insurance carriers will give you the same coverage amounts.
4. Avoid Using The Mortgage Lenders Insurance –
The lender working with you will offer to get you into an inusrance policy that will cover everything you need. Even though these policies are convenient, they have higher interest rates and will not be customizable. Always use an actual insurance carrier to take care of your home and contents insurance contracts.
That is it. These top 5 tips will guide you toward obtaining a good home insurance policy at an acceptable price. Buying a home is a time-consuming process, so you want to be able to get coverage quickly without having to be on the phone all day. Online platforms are the way to go, especially those that have adopted the innovative technology of the digital age.
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