Growing up in sunny California is great, even if you sell home and auto insurance :-). But there I one thing that our suntans, great weather, and awesome beaches can’t conceal, and that the price of a home.
As a young man living in Orange County, homeownership seemed a far-off dream, it was something you nearly almost never thought of because it simply seemed out-of-reach.
Like most things, however, if you set goals and stick to your plan, you can make that dream become a reality. That’s kind of how it worked for me and my wife, as a young couple in our 30’s we set our plan and before we knew it we were buying our first home.
Getting that first home
There is a lot of excitement buying your first house, you’re a bit overwhelmed by all the possibilities, but it’s a ton of fun. Then there’s the escrow process, which steals some of the fun from the process. But you’re quickly right back into the fun zone when you get the keys and begin decorating and renovating.
Being a homeowner feels great!
While homeownership is a tremendous sense of accomplishment, there’s going to be a point along the way when you realize you just made your first BIG, long-term investment. It’s about this time that you transition from to the buyer of a house, to the owner of a home.
Your home is an investment, and you’ll likely increase its value with the upgrades you’ll add after watching all those home improvement shows you’ve quickly become a fan of. You’ll develop an opinion about flooring, counter-tops (and counter heights), landscaping, and much more.
While you’re thinking of all the great ways to upgrade your home, you’ll begin the process of starting a family fully completing the transformation to full homeownership.
Along the way, what is often missed is how to protect your home. So, what’s the best way to protect your home? It’s simple, home insurance.
Assessing the importance of home insurance
While not as sexy a topic as decorating choices, your choice for home insurance is just as important, or maybe more important, than your choice of granite, tile or paint colors.
The reality is that most new home buyers don’t have any understanding of what makes good home insurance. Heck, many new home owners never even purchased a renter’s insurance policy before becoming a home owner, so how would you know what constitutes a good home insurance policy?
And even if you had purchased renter’s insurance, home insurance is a pretty different animal. Most newbies don’t understand that hazards like flood, windstorm or earthquake are not covered by the standard home insurance policy. These types of perils need to be added by endorsement or purchased as separate policies. Or that home insurance has sub-limits for jewelry, firearms, and art, and if you need more coverage, you’ll need a personal article floater or to schedule the items for additional cost.
The first-time homeowner won’t understand the different between replacement cost and actual cash value, or if replacement cost is extended to personal property.
Buying your first home is awesome, decorating and renovating your new home is rewarding. For most, your home is going to be one of your largest investments, so take time to investigate your options, the coverages, the insurance companies, before you purchase home insurance.
The good thing is that you have options. Even this blog post has provided some understanding of the importance of home insurance. There are also a wealth of resources online if you’re a do-it-yourself type, but If you want expert consultation, you can call an independent insurance agent to get a breakdown of several insurance companies and consultation on the various coverage options as well.
If you have your plan, you execute, purchase good home insurance, you’ll have a home you can enjoy for years, with the peace of mind that you’re protected in the event of an accident.