Purchasing a home is the very foundation of the American dream. Owning a little piece of the world and a nice home built upon it is a life-changing step, but first-time homebuying also comes with an education. One of the things that may be new to you is homeowners insurance. Make it easy by educating yourself about these three things.
It’s a good idea to familiarize yourself with insurance terms to understand what you’re purchasing. Internet research is a great place to start, but it’s more helpful to speak with an insurance agent or someone at an insurance call center who can explain coverage definitions and options.
Some homeowners are caught off guard by all of the information they need to know about their new home. You’ll be asked things like the square footage, the age of the roof, and about updates to the plumbing, heating, and wiring in your home. You can find most of this information on the real estate listing, disclosure, and home inspection report.
Lenders and Owners
If you’re like most first-time homebuyers, you’ll have at least one mortgage on your home. Your insurance company will need to list the mortgagee clause exactly as the company requires, so get that information as soon as you can. You’ll also have to list any co-buyers, so figure out how the home will be deeded.
There are many things to learn when purchasing a home for the first time. Sometimes, the best place to start is finding out what you don’t know.