Buying a home comes with lots of considerations and many first time home buyers can forget that insurance is not only one of them it will likely be a requirement for your mortgage. After all, if something happens to your home it’s crucial to lead on your home insurance.
Purchasing an insurance policy can be a pretty straight forward process especially if you already have an insurance agent you trust. Keep in mind that many mortgages will require an escrow account to accompany your mortgage in order to ensure that taxes and insurance are paid for up front. In either case, here are some do’s and don’ts for home insurance.
1. Do: Get Comprehensive Coverage
There’s really nothing to be gained by skimping on your home insurance. Many mortgage lenders will require you to have comprehensive coverage, and you should want to protect your (likely) most valuable investment as best you can. Comprehensive coverage not only covers your home, family, and possessions, it protects personal injury in the event that someone is injured on your property. Be smart, go comprehensive.
2. Don’t: Bundle Your Insurance for Convenience
One new homeowner insurance mistake is to bundle home, auto, and life insurance into one package for convenience sake. And while many times this is perfectly fine, there are myriad reasons to shop around and make sure that you’re getting the most insurance for your premium. Bundling can save you money on some aspects of insurance, but shopping around may save you even more.
3. Do: Keep a Record of Your Possessions
Always keep a record of your most valuable possessions. Keeping a digital journal comprised of all of your valuables with their respective values either at the time of purchase or appraisal may save you a heartache in the event of a total catastrophe. Also, it helps you understand what exactly your insurance is capable of buying and gives you a starting point to make sure that you have adequate coverage not only for your home, but to replace your belongings.
4. Don’t: Forget Your Special Items
Many insurance policies cover a broad range of possessions and will pay out if those items are damaged, stolen, or destroyed in the event of a claim; however, pay close attention to the policy you’re about to sign and make sure it covers what you need it to. Jewelry, electronics, and out of the ordinary belongings may require additional insurance. Most policies broadly cover these items, but will only pay out a certain percentage or dollar amount to replace them.
5. Do: Talk to a Mortgage Specialist
Mortgage specialists can be one of your greatest allies as they have likely seen hundreds if not thousands of home loans come across their desks. Additionally, they know the requirements a given lender has on insurance and coverage in addition to a knowledge of escrow accounts. With that said, get in touch with one of the loan officers at Tidewater Mortgage Services.
A Tidewater loan officer can not only give you some great advice on insurance and mortgages, but you can get pre-qualified for financing the same day you call. Kill two birds with one stone and call Tidewater Mortgage Services today to speak with a professional!