If you’re buying a home for the first time, you will need home insurance. Here are seven tips from the independent agents at Active Insurance Solutions, home insurance experts serving Minnesota, as well as Wisconsin and Iowa.
Prepare Before Closing
Your mortgage lender will require you to have insurance at the time you close on your property. Therefore, you need to start looking for a policy that works for you and have everything lined up in advance. Give yourself at least a few weeks in advance of your closing to set up your insurance so you can take your time amid all your other tasks.
Typically, your home insurance premium is rolled into your loan and spread out across your mortgage payments. When you find a policy you are satisfied with, have the insurance agents send proof of insurance to your lender to facilitate this. We’re happy to do this for you at Active Insurance Solutions when you take out a policy through us.
Save Time by Using Independent Agents
Shopping around for insurance can be time-consuming when you have enough on your plate already with closing and moving. To make your hunt for home insurance more efficient, shop with the independent agents at Active Insurance Solutions.
Rather than having just a few limited home insurance products, we have dozens because we partner with more than 20 top insurance carriers nationwide. Consider it one-stop shopping when you collaborate with us for home insurance coverage.
Make Sure You Get the Right Type of Insurance
Most of the time, a regular home insurance policy is what you need. However, if you are buying a condo or high-value home, you may be better served by insurance created especially for those types of properties. Be sure to let prospective insurance agents know what type of home you are purchasing.
Ask About Extra Coverage for Valuables, Liability, and More
Your home insurance policy covers your dwelling and property inside against most perils, like fire, storms, natural disasters, vandalism, and theft. Home insurance doesn’t usually cover floods or earthquakes, though, so ask to have those added if you need them.
Your coverage has a cap for certain valuable possessions. You might need scheduled coverage at a nominal extra charge to fully insure expensive items like jewelry, furs, antiques, collectibles, and artwork.
Likewise, your home insurance liability coverage has a limit. Liability insurance covers you if someone is injured on your property and wins a legal judgment against you for damages. If you feel more comfortable with a higher amount of liability insurance, such as if you own a dog, ask about adding an umbrella policy.
Know What’s Covered and How to File a Claim
Your insurance documents can be pretty complex, as they contain every tiny detail about your policy. That’s where a seasoned agent can help you out. They can explain exactly what’s covered in terms you’ll understand. They can also tell you what to do if you ever need to file a claim.
Be sure you understand how your deductible works. This is the amount you pay out of pocket before your policy kicks in. For example, it doesn’t make sense to file a claim for $500 of roof damage due to hail if your deductible is $1,000
Understand the Factors That Influence Insurance Premiums
Speaking of your deductible, did you know it affects the cost of your premium? In general, a higher deductible results in somewhat lower premiums and vice versa. It’s good to understand their inverse relationship when shopping for a policy.
There are multiple factors that affect the cost of insurance today. However, two major ones you can count on are your location and your past claim history. If you have filed numerous claims in the past, such as for your renter’s insurance, it may result in your home insurance premium going up in price.
Consider Bundling Your Insurance to Save Money
Finally, bundling your insurance can save you money on all your insurance policies. This means going to one source for your home, auto, umbrella, boat, and other insurance. When you get them under one roof, not only is it more convenient for you, it also usually results in significant savings over time.
Are you a first-time home buyer shopping for a home insurance policy? Congratulations! We’d love to help you at Active Insurance Solutions. Call us today at 952-479-5877, or use our easy online form to request a quote.