The shifting U.S. housing market has introduced many first-time homebuyers, tasking each with choosing the right homeowners insurance policy. What should be a huge milestone in one’s life becomes an overwhelming decision. Insurer options are ten-fold. The cost of each policy differs. What’s covered and what’s not? These are all factors weighing heavily on the first-time homebuyer’s mind when seeking a homeowners insurance policy that fits their needs.
Which insurer is the best fit?
Determining which insurer is the best fit depends on your financial state and homeowner needs. This is why shopping around during the early stages of homeownership is key. Start by obtaining at least three to five quotes. This should give you at least three different homeowner indications.
Be sure to stick to one type of policy during your initial inquiry. You’ll get the best possibility of obtaining the best coverage at the most affordable price while comparing each insurer.
How much will a good homeowners insurance policy cost?
The cost of homeowners insurance for a first-time homebuyer depends on the property location, amount of coverage needed, and the homebuyer’s insurance score—this includes prior losses.
To accurately assess the appropriate coverage for your home, it’s best to talk to your insurance provider. They are the best go-to when figuring out the total cost of replacing your home and what policy would best fit should the issue arise. Although there are several forms of homeowners insurance, the most common is the HO-3 policy which covers damage to your owner-occupied home and belongings. In order to collect 100% of damages, in the event of a loss, your home must be insured to at least 80% of its replacement cost.
This means that the homeowner will be financially responsible for the rest. To avoid unexpected repair costs, try working with an independent insurance agent. They’ll help determine your new home’s replacement cost and find the right coverage to meet your homeowners insurance needs.
What will homeowners insurance cover?
Like each homeowner, each insurer is different and provides different speculations within their homeowners insurance policies. Be sure to check for any exclusions in policies.
This will give you an idea of the types of damages an insurer won’t cover. Knowing what’s covered and what’s not under your insurance policy is critical for any homeowner. Common types of damages not covered include those resulting from natural disasters. If you’d like any of the listed exclusions included, an insurer will be able to customize your home’s insurance policy by adding additional coverage to meet your needs.
A typical coverage package for MA and New England homeowners insurance includes:
- Protection for the physical structure of your home and its contents
- Replacement costs coverage vs actual cash value claim settlements
- Personal liability and additional living expenses coverage
Additional coverage options can add an extra layer of security and help to offset various unexpected costs. Flood insurance, earthquake insurance, and animal liability are just some of the many add-on insurances available to homeowners.
Compare policy premiums, coverage, and company reviews. Homeowners insurance is not one-size-fits-all and will differ for each homebuyer. At Downey Insurance Group, we aim to create custom, top-quality insurance policies that reflect each homeowner’s distinct needs.
Contact us today and find the homeowners insurance that’s right for you. As a first-time homebuyer navigating the future’s uncertainty, you deserve the best possible coverage.