What are the “Need to Know” Steps to Buying Homeowners Insurance?

Does everyone need homeowners insurance? If you purchased a home and have a mortgage you are require to have homeowners insurance. Finding the right policy and coverages can be the challenge you face. Here are a few simple tips to assist you as you start the process of protecting your home.


First your agent is going to ask you details on the home. Keep in mind, when you buy a home, you need to take into consideration the updates done or need to be done. Usually, your inspector will tell you what is needed. The older the home, the harder it is to place coverage, especially when the updates are more than 20 years old. When we are talking about updates, this does not mean your kitchen. We are talking about the roof, plumbing, HVAC, etc.


You also need to tell your agent if you are escrowing your mortgage. If you are, then that means it is up to your mortgage company to pay your homeowners insurance premium each year. Sounds great, but in reality, it can be a nightmare. It is mainly a nightmare because there is a lack of communication from mortgagee to customers to agents. Just remember, communication is key in every relationship, even with your insurance agent.

Personal Property

A big question people have is “how much personal property coverage do I need?” Usually when this question is presented the best answer we propose is this. If you were to pick up your home and turn it upside down, anything that fell to the floor would be your personal property. There is not a firm answer because someone in a 1000 sq ft house will have much less personal property coverage than someone in a 5000 sq ft house. Keep in mind, usually expensive jewelry, watches, cameras etc will not be replaced fully in this basic personal property coverage. Typically, if you have personal property valued at $2000+ we would suggest you schedule that on your homeowner’s policy, so you get full replacement cost back for that item.

It is a great thing here at Spivey we have agents that will advise and answer all your questions that you will have. We have licensed and trained professionals that know everything that you will need to be covered for on your homeowner’s policy so you will not have to worry. Follow us on social media Facebook, Instagram, LinkedIn, Twitter, YouTube, and Pinterest!

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