Buying your first home can be a whirlwind experience. The excitement of accomplishing a huge milestone in your life can sometimes be diluted by feeling overwhelmed. The unfamiliar and seemingly endless to-dos that now lay before you. We have compiled a list of common insurance FAQs for first time home buyers. While it might not be the most exciting item on your to-do list, ensuring your new home is properly insured is an important step in this next chapter of your life. With several types of coverage and policies to sift through from countless carriers, homeowners insurance can be quite intimidating.
While completely understandable, know it doesn’t have to be this way. At TGS Insurance, we work to mitigate complications and provide useful resources for homeowners to help navigate this intricate field. Feel free to speak with one of our knowledgeable agents at any time and check out the homeowners insurance FAQs for first time home buyers that we have compiled below.
How Much Does Homeowners Insurance Cost?
Your monthly homeowners insurance cost will vary due to many factors, but on average, Americans spend around $192 a month, and in states such as Texas, this can go up to nearly $286 a month! At TGS Insurance, our customers only pay just above $128 a month on average.
Every home and situation is different. Depending on the value of your home, policies bundled, credit score, and many other factors will determine how much you pay each month; however, it can be easy to see that not all insurance companies are the same. TGS Insurance can sometimes help you save almost $1,900 a year. To get started, contact one of our agents today and begin saving on your homeowners insurance.
What Does Homeowners Insurance Cover?
The specifics of your homeowners insurance policy will vary between your policy type, insurance provider, the amount you pay in premiums, etc., but the basic coverages your policy will provide protect your home, your property inside, and you against liability from medical and legal expenses.
Your homeowners policy is there for you during destructive events such as damage from hail, vandalism, explosions, smoke damage, and even volcanic eruptions. Several things can be protected, including an attached garage, and some policies may cover valuables such as jewelry or art, but many have a limit on such items. What your homeowners insurance covers depends on what kind of policy you enroll in.
Are There Different Types of Homeowners Insurance?
As we’ve mentioned, there are different types of homeowner insurance policies that protect you and your home in different ways depending on your needs and what your home qualifies for. Take an in-depth look at three of the most common policies and their differences here: HO2, HO3, and HO5.
In total, eight different homeowner insurance policies are available under a variety of circumstances. Take a look below at the different policies that can help protect your home:
HO1– The most basic coverages, which is not very popular in modern markets.
HO2– A step above HO1 but still fairly basic. A more popular form of current basic coverage in today’s markets.
HO3– The most popular homeowner insurance policy available. HO3 offers standard coverage with more protection than HO2 or HO1.
HO4– Known as renters insurance, HO4 policies help protect your property and liability when renting a property.
HO5– The most complete homeowners insurance policy available. The key difference here is that unless something is specifically stated as not covered, your policy will cover it.
HO6– Think of a homeowners insurance policy but for condos.
HO7– Offers protection for mobile homes and manufactured homes. Similar to an HO3 policy in nature.
HO8– A coverage option that is used when homes don’t qualify for one of the previously mentioned policy types. The most common example of this policy coming into play is for older homes that carry high replacement costs.
When Should I Buy Homeowners Insurance?
Homeowners insurance should be purchased before you close on your home. This protects you and your home should a disaster strike before you complete the close of your home and you are stuck dealing with the aftermath. Many lenders also require proof of insurance before things are completed.
Closing on a home generally takes 4-6 weeks, and a great timeline for looking for a policy would be around three weeks before your close date. By this time, the process will be in motion to close, and should something prevent you from closing on your home, you can cancel your coverage with no penalty.
How Does Homeowners Insurance Work?
Homeowners insurance policies protect your home and property from a variety of perils. They also assist in protecting you from liability costs, including legal and medical. Should something happen that is covered by your policy, you would submit a claim. Then, receive the appropriate amount of compensation minus your deductible.
How Do My Deductibles Work?
Every homeowners insurance policy has a set deductible stated within your policy. The deductible is the financial portion you are responsible for paying as a homeowner when a claim is submitted to your homeowners insurance provider.
For example, let’s say you suffer from a peril covered by your homeowners insurance policy that would require $25,000 to rectify. If your deductible is $2,000, you would be responsible for this portion, while your homeowners insurance provider would provide the remaining $23,000 to cover your damages.
Which Homeowners Insurance is Cheapest?
TGS Insurance prides itself on providing some of the lowest homeowners insurance rates in the market. We work with many top-rated insurance providers that allow us to shop for the cheapest policy for your situation without skipping coverage. We hope this list of home insurance FAQs for first time home buyers answered most of your questions! If it didn’t, contact one of our agents!
On average, our customers save nearly 45% more money than the average Texan homeowner. We can bundle your homeowners insurance policy with other policies such as auto, flood, or windstorm for more savings. The amount you pay will ultimately depend on lots of factors, but TGS Insurance’s relationships provide them with an avenue to present the best insurance product available for your home. Contact us today to protect your home and save money each month.