You saved your pennies, a lot of them. You found the perfect place for you to live; it feels right, and you can imagine your every day there. You put in the offer, it was accepted by the sellers (woo!), and now you’re working to get your mortgage settled. But before you close on your first home, your lender will require proof of insurance. Lenders hold onto the keys so to speak until you obtain home coverage that protects your residence, detached structures, and personal belongings.
What do you do next? Here are 5 tips to get home insurance:
- Seek advice
Just as buying your first house is a big decision, so is obtaining home insurance. Working with an agent can be the best way to truly understand what you need. An insurance agent can walk you through the different coverages and what they mean so you can protect your recent investment.
- Get your quote early
You’re eager about your potential new home. We get it. There’s so much to think about and plan for, but in all the excitement don’t forget to start shopping for your home insurance early, especially in Los Angeles. The insurance market is tight right now in Southern California and your agent will likely need to shop around. We advise that you start looking for insurance about 30 days before closing. If you wait until the last minute, you could delay your closing.
- Know what isn’t covered
First time home buyers can be surprised by what their home insurance does not cover. You need to know what coverages are extras (called endorsements) on your home policy, and what needs to be written as an entirely separate policy. For instance, you would need separate policies for flood and earthquake insurance. Again, working with an agent can help with this because they can explain all of the different coverage options.
- Choose the right deductible
Home insurance is meant to protect you from a big loss on your property, which we obviously hope doesn’t happen. It shouldn't be viewed as a way to make a claim for every little thing - your premium will go up if you do. As such having the right deductible is important. You have to decide how much you are willing to save on your own and then ultimately pay out of pocket.
- Bundle policies to save
Purchasing multiple polices, bundling, with the same insurance company can help save you money and provide added convenience. This could be done for home and auto policies, or home and umbrella insurance policies, or any combination of these. In many cases, the savings are substantial. With some carriers, it is possible to save more than 15% off your total premium.
How to get home insurance with Ares Insurance?
We really enjoy working with first-time home buyers, especially when it comes to providing advice and walking clients through the different coverages. If you would like to have us guide you through the home insurance process, you can take any of the following steps:
- Fill out our quote form
- Schedule a call or video conference
- Send us an email with questions
- Or just call our office at 818-986-4207
This blog post is not offered, and should not be relied on, as insurance advice. You should consult an insurance agent for advice in specific situations.