Tips for Obtaining Homeowners’ Insurance
Congratulations! You just bought a home! At Union Home Mortgage Corp. (UHM), we enjoy seeing the excitement on new homeowners’ faces when they close on a house. This special moment often comes from the happiness of finding a home you can see yourself in and from the relief of knowing that all of the paperwork is finally done. While we understand that shopping for a house is stressful in itself, we also realize that shopping for the right homeowners’ insurance can be equally as burdensome.
We know you can’t wait to start picking out paints, but finding quality insurance will help with more than maintaining the aesthetics of your house. With so many options on the market, most people don’t know where to start. To help those who are shopping for a new house, the staff at UHM has compiled some useful homeowners’ insurance tips:
1. Decide on desired coverage: While no one wants to think about the potential disasters that can affect their new home, this is an important conversation to have. Whether you’re having this talk with yourself, a loved one, or your loan officer, deciding on coverage before shopping for homeowners’ insurance will help you hone in on your needs. Your lender may help with this decision by telling you how much coverage is required, but stipulations vary from one place and lender to the next. Once you understand what kind of coverage you want or need, it’s time to start doing some research into your payments.
2. Research, research, and research some more: We know, you already have tons of research ahead. From escrow, to the history of the home, to your credit status, but it’s important to make time to research homeowners’ insurance options as well. Many people who are happy with their auto insurance provider will just get homeowners’ insurance through them (if it’s offered). This route can make life easier, but if you’re trying to save money it may not be your best option. For those who are looking to save money, this period of research will also include quotes from different providers. Savvy shoppers may love this part of the process as there are numerous unbiased sources out there that will tell you what different insurers charge for identical products and services. Furthermore, this is a great time to let insurance companies know you’re shopping around – this honesty may lead to some discounts in your rates.
3. Carefully review your policy: You did it! You found the ideal homeowners’ insurance for your new house. However, the final step is just as important – carefully read your insurance policy before signing. Insurance policies are legal documents that should be reviewed with a critical eye. If you have any questions about the wording or other concerns, it’s important to address them before signing. Once your policy is signed and finalized, make sure you store it in a safe place.
At UHM, we are often questioned about the necessity of homeowners’ insurance and can’t stress enough that while this is another obstacle in the home buying process, insuring your home should be considered a fundamental step. Insurance protects your home and belongings from liability for accidents, injuries, or property damage. For those who are living a mortgage-free life, this insurance should still be looked at as a necessary living expense. If disaster does strike, those with quality insurance can rest assured that their homeowners’ insurance is there to help them pick up the pieces. For more information about obtaining homeowners’ insurance, please feel free to reach out to the knowledgeable staff at UHM or watch Episode 2 of UHM's "Mortgage Talk" special below.
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