Homeowners Insurance for First Time Homebuyers Who Don't Want to Be Dummies

Homeowners Insurance for First Time Homebuyers Who Don't Want to Be Dummies

When the "everything you could ever possibly want to be, do or say" guides for dummies first hit the market people looked and laughed. When "Insurance for Dummies" came out, we were too! After sitting down and reading it,

Picture found at Amazon.com.

however, I have to admit I'm not doing much laughing. This simple, easy to use guide breaks homeowners insurance down for first time homebuyers, taking them through the ins and outs of shopping for insurance and protecting their home so that even if they were dummies going in, they definitely weren't by the time they were done!

Since copying and pasting 384 pages here would take all day (and don't think I'm not tempted!) let's take a second to look at the highlights-the bare bones facts that first time homebuyers need to know about protecting their newest investment.

First and foremost, you're going to have to present proof of some kind of homeowners insurance coverage to the bank before you'll be able to close on your mortgage. Hey, banks want to make sure their investments are covered! If your house goes up in flames you're still going to have to pay off that mortgage, and that can be kind of hard when you're already out hunting for another one!

And I'll let you guess what the chances are of the average person being able to pick up another mortgage (not a refinance, a whole other mortgage) when they're still carrying the majority of their first one. It's not pretty.

Second, your homeowners insurance coverage isn't necessarily going to be for the exact amount of your mortgage. This catches many first time homebuyers by surprise-I remember one couple who purchased a handy man's dream for under $50,000 and were shocked to find out they were going to need to insure it for $150,000. Why? Because when we started talking about rebuilding costs the numbers just kept climbing higher and higher! Remember, home insurance coverage is all about what it's going to cost to build it back up just the way it was, not what you paid for it in the first place.

Contrary to popular belief, just because you have insurance doesn't mean that all your homeowners insurance claims will automatically be paid. Why? Because unless you know what you're looking for, your home insurance coverage plan is going to have more holes in it than a slice of Swiss cheese! Things like earthquakes, flooding and the theft of unlisted (and therefore technically uninsured) items tend to slip through the cracks. It's up to you as a homebuyer to make sure those cracks aren't there in the first place.

Finally, it's amazing what will help lower your homeowners insurance rates. Your age, where you live, how close you are to emergency response services and how much time you spend in the house (as opposed to at work) all work together to make your home safer and your insurance much more affordable.

"Insurance for Dummies" is a great book, and if you get the chance you ought to pick it up. In the meantime, however, these easy homeowners insurance tips for first time homebuyers will help you show your lender and insurance agents that whatever else you may be, you're not dummy when it comes to keeping your home safe.

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