How to buy home insurance for the first time
Congratulations on becoming a first-time homebuyer! Time to crack open the champagne bottle and celebrate. It’s a major life milestone. But before you can call yourself a homeowner, there are a number of loose ends to tie up. One of those is to buy home insurance. Not only does buying home insurance make sense, since you’re protecting quite possibly the single largest asset of your lifetime, most lenders require that you have home insurance in place before they’ll approve your mortgage.
Buying insurance and shopping for a mortgage have a lot in common. Here are three places to buy home insurance for the first time – or anytime for that matter.
Buy insurance from an insurance company
Similar to shopping for a mortgage, you can choose to buy home insurance directly from an insurance company. The process starts with a quote. Requesting a quote is usually as simple as a phone call or website visit. It’s a good idea to get quotes with at least two or three different insurance companies to compare coverage and ensure you’re getting the best rate. What’s covered in one insurance policy may be different from the other. Even if you’re signing up for a comprehensive home insurance policy, coverage between insurance companies may vary.
Buy insurance from an agent or broker
A second option is to buy home insurance from an agent or broker. If you’re familiar with a mortgage broker, an insurance broker is pretty much the same thing, but instead of shopping for mortgages, you’re shopping for home insurance policies. Home insurance policies can often be complicated, a lot more complicated than mortgages. This makes apples to apples comparisons between home insurance policies challenging, and where an insurance broker comes in handy. When you’re using an insurance broker, you have someone who understands the ins and outs of home insurance policies on your team. An insurance broker shops around on your behalf at different insurance companies to find the best home insurance policy for you at the lowest rate. They can also explain the home insurance policy to you in detail, help determine the right level of coverage and advise you of any discounts you may qualify for.
Insurance rate comparison websites
The third and final way to buy home insurance is through an insurance rate comparison website like HUB Insurance Hunter. Comparing insurance rates online is fast, simple and free. Once you find a home insurance policy that you’re interested in, with a few simple clicks of the mouse, you can get a home insurance quote. Using an insurance rate comparison website is the best way to shop around to find out if you’re getting the best home insurance rate. You can save big bucks by doing this.