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Importance of Home Insurance to the New Home Buyer

New Home Buyer

Growing up in sunny California is great, even if you sell homeowners and auto insurance. 🙂 But there is one thing that our suntans, great weather, and awesome beaches can’t conceal, and that’s the real price of California home ownership. For this reason, home ownership quickly teaches us the importance of home insurance.

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 dreams become reality.

Getting that first home

There is a lot of excitement in 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, countertops (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.

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 homeowners never even purchased a renter’s insurance policy before becoming a homeowner, so how would you know what constitutes a good home insurance policy?

Even if you had purchased renter’s insurance, home insurance is a pretty different animal. Most newbies don’t understand that hazards like floods, windstorms, or earthquakes are not covered by the standard home insurance policy. These types of perils need to be added by endorsement or purchased as separate policies. 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 an additional cost.

The first-time homeowner won’t understand the difference between replacement cost and actual cash value, or if the replacement cost is extended to personal property.

Buying your first home is awesome, and 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, and the insurance companies, before you purchase home insurance.

The bottom line

The good thing is that you have options. Some of these options are alluded to in this very post. In fact, there are a wealth of resources online if you’re a do-it-yourself type. However, buying insurance is often best with an insurance agent. If you want expert consultation, contact us or start your quote online.

If you have your plan, you execute it and purchase your dream home. Just make sure to have good home insurance. This can help you have that home for years, with the peace of mind that you’re protected in the event of an accident.

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