When Should You Start Looking for Home Insurance?

The United States Census Bureau found in 2018 that the national homeownership rate is steady, at 64.4 percent with vacancy rates at 1.6 percent. The majority of people are owning homes, which means that you might be in the market for a homeowners insurance quote.

To own a home in general, it’s usually required to have some type of insurance coverage. If you don’t have coverage, that puts you in danger if there’s ever an event that negatively impacts your home. If there’s theft, vandalism, a fire or some kind of natural disaster, having coverage means that you don’t have to worry about the rebuilding cost of your home. If someone is hurt on your property,  that’s another situation that’s going to require insurance.

But the thing is, when should you start looking for home insurance? If you’re not sure, check out this blog below.

Is Homeowners Insurance Really Required?

Any mortgage lender is going to require that you take out a minimum level of hazard insurance. You house is ultimately collateral for the loan, so if some kind of damage happens, the lender is going to want to know that your home is going to be covered. Before you even close the deal on a home, you’re going to need proof of your coverage. 

When Should You Start Looking?

You should start the search for the perfect homeowners insurance policy before you’ve even chosen a house. There’s multiple things that can impact your premiums, which is why it’s so important to do your research first and get your quote. For example, if it’s a high crime area, expect to have higher premiums. If you’re aware of what you’re looking for (area, proximity to fire hydrants, plumbing condition, etc.), then it’ll be easier to see when your costs might start adding up.

Why History Reports Matter

Once you’ve picked a home, it’s time to check the history behind it with a Comprehensive Loss Underwriting Exchange Report. The CLUE reports on all past claims and even damages that weren’t reported at all. This means that you can find out about issues that may raise your premium or otherwise limit your insurance options. All homeowners are given a free report a year, so use it wisely. If the seller doesn’t have a recent report, ask them for one.

Penalties Regarding Homeowning

If you never looked for a homeowners insurance quote and ended up with no insurance options, you won’t be able to purchase the home. And if you’re already in a contract, expect there to be fees for backing out. That’s why a contingency clause is essential in a contract: it keeps you from being responsible for the lack of coverage. If you’re unsure about how much coverage you need, talk to an agent. Purchasing additional insurance might be beneficial for your home.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.