Questions for First Time Home Buyers
First time home buyers should be full of questions regarding Homeowners Insurance. If you are purchasing your first home, begin by choosing a trusted, experienced insurance agency with a long record of customer satisfaction. Usually an agent is chosen by getting a recommendation from a close friend or family member. Real Estate brokers can also be of help in choosing a good insurance agency. When you have chosen an insurance agency, you can then sit down and discuss your questions and concerns regarding the coverage of your new home. Below are some items of discussion regarding what you should know about Homeowners Insurance.
First thing to determine is the home’s insurance value. This is based on replacement cost, not necessarily on the market value. Your agent will help you figure this out considering size and building materials used.
Choosing a Deductible
A deductible amount will have to be determined when buying a homeowners insurance policy. Going for a higher deductible will save you money on the premiums. If you choose a higher deductible try to have an emergency fund to cover that amount should you need to file a claim.
Are Contents of My Home Covered?
Homeowners Insurance automatically covers possessions up to a percentage of the home’s insurance value. This is often set at 75%. If you have a lot of valuable items, such as jewelry, you may want to purchase additional coverage. To make this process easier, take an inventory of your contents with photos or a video of each room in the house. Update the list regularly.
Are Floods or Earthquakes Covered?
Standard Homeowners Insurance policies do not cover flood damage. If your home is at risk of flooding due to proximity to a body of water or other flood peril, you should have flood insurance. Mortgage companies usually require flood insurance if the house is at risk of flooding. All of this would apply to earthquakes as well. You would need to buy additional coverage if your house is in an earthquake prone location.
“All Risk” Coverage
Ideally when buying Homeowners Insurance you want “All Risk” coverage. Most Homeowners Insurance policies cover fire, theft, and wind damage. There are many additional risks to your home and property that may not be covered by traditional Homeowners Insurance. These excess risks are something to discuss with your insurance agent so that you will feel fully protected.
Talk to a Professional For Full Homeowners Insurance Protection
The staff of experts at Bogle Agency Insurance are available to guide you to the best and most comprehensive coverage for your home. We have been helping New Jersey homeowners for over 100 years. Of course insurance coverage has changed in that time, but we are always updating our knowledge and stand ready to offer the newest, latest protection available. If you are a first time home buyer or are moving to a different location, Bogle Agency Insurance offers the most professional assistance in purchasing Homeowners Insurance. Give us a call at (201) 939-1076 and let’s talk!