How to Shop for Homeowner Insurance For First-timers


Owning a home is an excellent milestone in anyone’s life. A home gives you financial security and adds to the assets that may help you secure a loan. When you buy your first home, you’re excited and fulfilled. You also have many questions about the best homeowner insurance cover to purchase.

This read is here to help you join the dots before signing up for your first homeowner insurance.

1. Shop and compare policy

If you’re servicing a mortgage, your lender will require homeowner insurance to protect their investment. Even when the house is finally yours, it’s critical to shop from three or more insurance providers.

Check online to read customer reviews on various providers. Compare the price against the coverage and decide its worth. 

Ask questions to ensure you purchase the right cover for your unique needs. You may use an insurance broker, call your provider or visit them in-person or online on their website. Visit  only a click away when you need a customized policy.

Your insurance will come in handy when you’re most vulnerable, so buy a cover worth your price because cheap may compromise on quality.

2. Escrow the insurance payment with mortgage payments

Most first-time homeowners attach their monthly premiums to their mortgage payments. Your financial partner pays insurance premium and property tax dues out of your escrow account.

Most lenders prefer this arrangement because it assures them that your insurance premiums are paid in time and their investment guarded against imminent loss or damage. 

3. Choose an adequate coverage for your need

To what extent does the insurance cover you? Does it cater to your unique needs? The level of coverage is the most critical feature of reliable homeowner insurance.

Levels of homeowner insurance coverage

  • HO-2– is the broadest policy that mitigates against the major perils. Most insurance providers list at least 16 different perils and form the basis for making claims.
  • HO-3- protections against the listed perils except those excluded by the cover.
  • HO-5- is a top-rated premium policy. Newly constructed and well-maintained homes fall in this category. It includes the 16 perils unless those excluded by the policy.
  • HO-6– is homeowner insurance for condos. It includes liability coverage, personal property liability, and any refurbishments done to the homeowner’s unit.
  • HO-7– This is similar to HO-3 and caters to all perils except those excluded by the cover. The major difference is that HO-7 applies to mobile homes and shelters.
  • HO-8-is homeowner insurance designed for older houses and covers the prevailing market price if the home was to be disposed of immediately.

4.  Understand the details of the policy

You should gauge your comparison to the following; deductibles, liability coverage, premiums, personal property, actual cash value, replacement costs, riders, limits, and sub-limits. 

Visit an insurance agent near you to help you understand these terms and their implication on your policy.

Parting Shot

Shopping for homeowner insurance can be a daunting task. However, using these guidelines can help you to be objective in your search. You may also visit your insurance provider by visiting them online and engaging them.