homeowner's insuranceIf you’re a first-time home buyer, then chances are you’ll soon be dealing with the task of purchasing homeowner’s insurance for the first time. Just like purchasing a home, purchasing insurance requires a decent amount of knowledge, understanding, research and comparison shopping to ensure you’re getting the coverage needed at the best price. This insurance policy should cover most damage to your home and the items within, and it also offers personal liability protection, so it’s important to make sure you choose the right policy.

Homeowners insurance typically covers the following areas:

  • Medical expenses for injuries that occur on your property.
  • Liability from personal claims resulting from an accident or injury that occurred on your property.
  • Damage to your property, including the home itself, personal property inside of your home and other structures not attached to the home, such as a detached garage or storage shed.
  • Living expenses resulting from the loss of use of your property, such as when major repairs are being made that make your home unlivable.

It’s important to factor insurance costs into your home search early on. Insurance costs are typically bundled with your mortgage payment and taxes, so it’s imperative that you know the price range for insurance to ensure you stay within your budget. However, it can be very complicated to get accurate insurance rates. Insurance agents will typically need a home’s physical street address, as well as extensive information about the home itself.

It’s possible to get insurance rate averages in your state, but once you’ve found a home you’re placing an offer on, you should determine how much coverage you’ll need. Make sure that you don’t skimp on coverage by choosing a policy with a high deductible and lower monthly payment, because you could then be responsible for a large chunk of the costs if disaster strikes.

If you’re still unsure about homeowner’s insurance and what type of coverage you need, read the article “Homeowner’s Insurance Tips for First-Time Homebuyers” on the Equifax Finance Blog.

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