By Alston Ballkcom

When you have just purchased a new house, insurance is probably not what you have in the forefront of your mind. This is to be expected. You may need to get your kids into new schools. You have contracts to understand and sign. You need to find a grocery store. There are plenty of things to think about when buying a new home.

Insurance is a boring but important subject. We tend to think about insurance only when we really need it, which can be a mistake. Knowing a little about the way insurance works can save you a lot of headaches when it comes time to purchase a plan or file a claim.

To a homeowners insurance company all of us are just a bunch of statistics. They make decisions based on numbers and tables. This is all that matters when calculating your rate. The information they have about you such as your job and where your home is located come into play when a company provides a quote for you.

Before asking for a quote from any insurance broker, you really should know the value of your residence, and that means the replacement cost, not just what the bank appraised it for during the financing process. A home builder in your area may be the best source for this type of valuable information. Knowing this figure will help you begin the process.

Shopping for insurance is like any other service you may need. It can pay to shop around because premiums from companies will vary. Also, shopping by the lowest price alone, while tempting, may be a mistake. For instance, some companies may have a poor track record when it comes to paying claims. A few minutes of basic research can keep you from making a poor decision based solely on price.

New home insurance is something the bank will require you to have, but their only concern is that you have enough coverage to protect them for the amount of the loan. Remember that a basic contract may not even cover the replacement cost for your house. Even though it may be boring and complicated, it will be in your best interest to read all your insurance documents carefully to be sure you have enough coverage should disaster strike.

Home insurance contracts protect you in many ways, such as from damage due to falling trees, or even if pipes burst and you incur damage. Another coverage, called liability, can protect you if you accidentally hurt someone. Speak to your house insurance broker if you have any questions regarding coverage amounts and types of insurance you might need.

Although a homeowners insurance is a robust contract, not everything is covered. However you can personalize your coverage to cover jewelry and other items. Ask your broker about riders you can add to your policy.

New home insurance can be difficult to understand. Just take your time and make sure that you understand your options this way you can make the right choice.

About the Author: You can find homeowners insurance prices and information on the author’s website. Alston J. Balkcom’s has also written about house insurance on his blog.

Source: isnare.com

Permanent Link: isnare.com/?aid=730011&ca=Finances