How to Choose an Insurance Coverage for your New Home


Buying your first house can be overwhelming, considering the emotions that cloud the whole idea of owning your home for the first time and the seemingly endless paperwork required. Before you start researching new homes in Palm Coast and the correct coverage, consider these factors.

Start Searching for Insurance Coverage Earlier

Start thinking of insurance as early as possible. Shop around for the best coverage for your home and decide what works for your needs. You can compare different insurers in terms of coverage, deductibles, limits, and premiums.

You can do this by calling individual insurers, obtaining quotes and comparing, use online comparison platforms like the A.M Best website, or involve an agent to do the legwork on your behalf. Remember that not all policies work the same. As a result, you may want to walk the journey with an expert who understands the process to guide you.

Understand the Types of Policies Available for Homeowners

There are several types of policies available in the market for homeowners. These packages range from HO-1 to HO-8. The HO-8 is a common choice for most homeowners insuring older houses.

The HO-3 is the most common among first-time homeowners as it covers more risks, except for the ones exempt from insurance coverage. It’s way better than the basic HO-2, which only covers theft, vandalism, fire, lightning, windstorms, vehicle and aircraft accidents, and hail.

Consider Deductibles

A deductible is a money you pay in the case of a disaster before your insurer’s compensation. It can either be a standard amount, like $1000, or a percentage of the total claim. For instance, if your claim check is $20,000, and your deductible amount is $1000, your insurer will pay only $19,000 while you take care of the remaining $1000.

A higher deductible may mean you pay lower premiums. However, you’ll feel the burden in case of a disaster, as you’ll have a considerable amount to cover from your pockets. On the other hand, a low deductible may mean you pay higher premiums, but your insurer will bail you out almost the total amount of the insured disaster occurs.

Discuss with your agent to determine which type of deductible is comfortable in your case and which to avoid. Also, take note of insurers offering higher deductibles for specific claims

Should you Bundle or Not?

Bundling is one of the most efficient ways to reduce your insurance premiums. However, it’s not always an option as the insurer you’re using for motor coverage may not offer homeowners’ coverage. Similarly, some insurers provide high rates that could be a loss to you, even with the bundling discount.

To be sure, shop around, ask questions, and compare companies, so you pick the best prices and the services you require.

The Type of Coverage to Consider

Home insurance policies come in four different types. These include:

  • Dwelling coverage, which guards your home’s structure
  • Personal property coverage, which takes care of your belongings in the house,
  • Personal liability, which covers any medical bills and legal costs when a third party incurs injury at your property, and
  • Loss of use, which takes care of your living expenses during your home’s repair

Talk to your guide to determine which type of coverage is ideal in your situation. Several options are available, but may not all fit your needs. Also, determining the amount of insurance you need for your home to avoid unnecessary costs.

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