Spring is the most common time to buy a home. It makes sense, since the winter weather that keeps people cooped up indoors often leads to dissatisfaction with your current living arrangements. In addition, purchasing a house in the spring provides you with good summer and fall weather to get situated into your new space, yard included, before the weather turns south again.
But what’s one thing that you shouldn’t waste your time on? Getting insurance coverage on your new home. This is a must. However, what should you know before you contact an insurance company? What types of policies do you need? Here’s a guide to insurance for new homeowners.
Before You Explore Your Insurance Options
There are a few things that you should do before you reach out to an insurance company. Two of these tasks involve doing a little research, while the other is a simple question that you can ask your insurer once you’ve chosen one.
Check for Specialty Policies – Are there certain things that an insurance policy won’t cover because of where your home is located? For example, if you’re on a flood plain, you may need flood insurance because your new homeowner’s policy may not cover the costs of restoring flood damage. Other specialty policies, like windstorm insurance, may be needed if you’re in an area with hurricane activity.
Obtain a CLUE Report – Also known as a Comprehensive Loss Underwriting Exchange, this report provides a history of the property’s insurance claims. Why is this important? Even though you’re a new owner, the history of the home remains, and one that seems prone to damages resulting in insurance claims can make your premiums rise.
Bundle Your Policies – Finally, see if you can bundle your policies. If you can combine your homeowner’s insurance with your auto insurance and any other policies, you can often get a discount. Ask your insurance agent if this is possible, or consider switching to an insurer who can provide this luxury.
Types of Insurance You May Need
Once you have your information in hand, especially that CLUE report, it’s time to see which insurance policies you need. Many of the common ones include:
General Liability – This is often bundled with homeowner’s insurance and will cover incidents on the property, like a neighbor kid who slips in your driveway and breaks a leg or if your dog bites the mail carrier. Your liability insurance will cover potentially expensive accidents that you may be found liable for, hence its name.
Homeowner’s Insurance – Your homeowner’s policy protects your home and yard. Should something get damaged or catch on fire, like your backyard shed, garage, or even part of the house, your homeowner’s insurance will cover it.
Specialty Policies – Flood, windstorms, and other types of extreme weather may call for specialty policies on your home.
Ask the Experts at Spivey Insurance
Are you ready to purchase insurance policies for your new or new-to-you home? Do you have any questions about the types of policies that you need, or are you wondering about policy amounts? Ask the experts at Spivey Insurance. We can help.