Homeowners insurance for a first-time home buyer is an adventure the same way walking a metal girder 20 floors above ground is an adventure. Each step should be taken carefully.
The reason it is a relatively high-risk activity is because it is the single largest investment most people make. That is, most people don’t have tens of thousands of dollars riding up and down in the stock market. Most people don’t have a large stake in a small business. It is in their homes they are investing tens of thousands of dollars, one monthly payment at a time, so insurance that covers their homes is critical to their investment.
Homeowners insurance for a first-time home buyer is a really, really big deal. It sometimes corresponds with a first job in a post-college career, or follows a marriage of two, young people now on their own, or the arrival of a child that requires a family to move into roomier quarters. This dramatic setting often is the background for that first homeowner insurance purchase.
Because so much is riding on it, the first-time home buyer should take necessary steps to get it right. These include systematically shopping home insurance products. Sorting through the insurance companies offering policies in your area is the initial elimination step. Then, having decided upon a brand of insurance, the next step is to identify an agent of the company who will be there when a claim is filed.
Both an insurance company and an agent representing the company are equally important in a satisfactory insurance experience and they should be vetted using official and unofficial sources. State insurance commissioner offices are good places to learn if a company is in good standing. Internet searches can confirm that information. Finding a reputable and full-service agent sometimes is as easy as seeking an agent referral from a professional colleague, or a family member. If the referring individual’s judgment is trusted, the referral is apt to be trustworthy, too.
And then the first-time home buyer should pore over a policy like it is scripture, and ask lots of questions along the way. Homeowners insurance for a first-time home buyer is too important for anything less than a conscientious exploration of the facts.