Kirby Soar Insurance - First Time Home Buyer's Guide To Homeowners Insurance

First Time home buyer’s guide to insurance

When you’re buying your first home, your lender and real estate agent can handle many of the details. They help to mitigate prices, clarify legal jargon, and use their expertise to make the process as convenient as possible. Insurance referrals often come from your lender. But how do you know those referred policies are right for you and your new home. That is why it is highly advisable that before your final closing you should compare homeowners’ insurance policies. At Kirby Soar Insurance, your independent insurance experts in central Florida, we want to make sure first-time home buyers just like you have all the information they need about homeowners’ policies.

Your home is an investment.

Buying a home is often the biggest purchase someone makes, so they want to protect it. When you buy a home, escrow typically requires homeowners to have homeowner’s insurance. Additionally, many first-time home buyers are required to pay 10-20 percent of your annual home insurance premium in your closing costs. Those funds will be deposited into your escrow account, by your lender, for the next billing cycle. It’s also recommended to first-time homebuyers that they bundle homeowners’ insurance. Instead of staring at dozens of papers like they are written in a foreign language, let Kirby Soar help you make sense of your home insurance policy, to make sure the coverage you are purchasing provides proper protection for your investment.

Things to Remember About Homeowner’s Insurance

As this is your first time buying or owning a home, you’re not certain what to look for in homeowner’s insurance. Follow our simple three-step guide and you’ll be a step ahead of other first-time home buyers.

Personal and Residential Property Coverage and Liability: It is expected that, as a homeowner, you will be responsible for every aspect of your property, residence, detached structures, and all the personal belongings contained within. Whether it’s clothing, furniture, electronics, jewelry, your vehicle, or tools, it is still your personal property. You should find an insurance plan that covers your personal property under Coverage C on your potential policy. If the limit isn’t enough to cover the items you own, then you should consider an insurance rider with a sub-limit or just consider another plan altogether. Not only are you responsible for all of the items that you own, but also for the people on your property. Coverage E on your insurance policy should protect you in case an accident happens and someone is injured. An incident on your property could be easily resolved with proper liability. If you believe you want more liability, make sure you can ask for a liability limit increase.

Beware Exclusions: Different insurance providers have coverage lapses. They will exclude coverage that you would traditionally see on other policies. The list of exclusions you should be wary of include earthquakes, landslides, mudslides, and flooding. Any of these natural disasters put you and your property at risk if you aren’t covered. You should find out what’s excluded from every policy you look at and if there is a purchase option for your policy.

Knowledge About Deductibles: Deductibles are part of any health, auto, or home insurance plan. Usually a set amount, a deductible on a homeowner’s is more likely to be a percentage of the costs. When you go to purchase your first home, it’s important to pay attention to your deductible. A property damage deductible, for example, could leave you responsible for a huge chunk of money. That means it is extremely important to make sure your deductible is reasonably within your budget.

Homeowner’s Insurance in Central Florida

Let the professionals at Kirby Soar help you find the right insurance policy for your new home. At Kirby Soar, we work with multiple providers to find you the best rates in Polk and Hillsborough counties. Schedule a consultation with one of our insurance experts by calling us at (813) 752-1680. We’re proud to serve the insurance needs of our clients in Plant City, Valrico, Lakeland, Brandon, and throughout central Florida.