Homeowners Insurance for First-Time Homebuyers

Home insurance is a type of insurance that covers the risks of damage or loss to your home and its contents. It also covers other structures on the property like garages and pools. Although having home insurance is not required by law like car insurance is, many first-time homeowners might benefit from obtaining one. 

They may need it when they buy their first home as it will give them peace of mind by protecting the items they have invested in. However, it is expected that home insurance policyholders will experience an average 5% rate increase in 2022 due to climate change, renovations, and rebuilds. 

Read on to learn why first-time homeowners need to invest in home insurance when they purchase a home.

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Factors That Home Insurance Depends On

Since this is your first home, you probably don’t have much experience with home insurance. Keep in mind that there are different policies and their price depends on several factors. Make sure you look for a reputable company such as aha Insurance, to provide you with all the necessary information about your first home insurance. In addition, make sure they’re fast, easy, and affordable. 

Before you get your insurance policy, consider the following factors:

How Can Homeowners Insurance Protect You?

Your most valuable investment needs the right kind of protection. But what exactly is covered with home insurance?

Liability Claims

Living Expenses

Your Belongings

Your Home

How to Choose the Right Home Insurance?

It can be difficult to purchase home insurance but it doesn't have to be complicated if you take a proactive approach. Depending on the age of your home, its value, and the number of people living there, you will need to determine the level of insurance you need. Beyond the initial insurance coverage cost, there are other factors you should consider, such as coverage limits, endorsement options, and provider type.

There are three main insurance categories, and insurance policies cover all three of them to a different degree. If you want to make the most of your money, go over different offers with your agent. For instance, dwelling coverage covers the building and its contents against damage caused by fire, theft, and natural disasters.

Personal property coverage protects the insured from the financial impact of loss or damage to their personal possessions. Liability insurance, on the other hand, protects you from medical payments and lawsuits.

Extra Insurance Precautions

Additional insurance may increase the final price, but in different scenarios, it can be worth it. Depending on your state, province and location, some insurance endorsements are required by law:

Hurricane Insurance

Water Backup Insurance

Jewelry Insurance

Fire Insurance

How Much Does Home Insurance Cost?

The cost of home insurance can vary depending on the several factors mentioned above, but it also depends on the insurance company you choose. Make sure your company is willing to come up with an offer that’ll suit your needs. Note that the average cost of home insurance in Canada is around $960 per year, but it can vary significantly from one province to another.

Home Insurance Cost By Province

Mortgage Insurance vs Homeowners Insurance

What is the difference between mortgage insurance and homeowners insurance?

Find out Here

Bottom Line

Even though having home insurance is not a requirement for buying your first home, it’s definitely something you need to think about. Your home will be protected in different scenarios, giving you peace of mind. You’ll be covered for things like floods, tornadoes, roofs collapsing, and many more.

Peace of mind comes in many forms and homeowners insurance is just one of them. What other steps have you taken to protect your family from the financial loss of an unexpected event? Here at Insurdinary, insurance is our specialty. Whether it’s life insurance, health and dental insurance, travel or disability insurance, we have you covered. Visit our page for more details on insuring yourself, or your assets. Prefer to speak to an agent? We can do that too. Our experienced agents are happy to assist you. 1-877-574-7475. We look forward to working with you.