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  • 15 August 2016

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What First-Time Homebuyers Need to Know About Insurance

Buying a home for the first time is a very big milestone. Whether you do it by yourself or as a couple, most people would describe this experience as a mix of excitement and stress. It’s completely normal to feel super excited one moment, and then for something to come up that suddenly hits you with a big helping of stress. Although there may be times when this process seems quite overwhelming, just remind yourself that you’ll make it to the end and then be able to start enjoying all of the benefits that go along with home ownership.

Why the Right Insurance is Essential for Cincinnati Homeowners

Making a significant financial decision of any kind is always going to come with some stress. And because buying a home is often the biggest financial choice people make, it’s easy to understand why this isn’t a process you want to rush. Another aspect that can make buying a home a lot to handle is you have to deal with things that you probably haven’t ever encountered before.

One of the those things for a first-time buyer is homeowners insurance. There’s no question that the policies for homeowners insurance can be quite complicated. This often leads to people getting lost in all of the details and ultimately resigning themselves to go with whatever policy seems pretty good. However, the reason that can be a major mistake is it can result in being underinsured.

Don’t Overlook These Aspects of Homeowners Insurance

Many people don’t realize just how many homeowners throughout the United States are underinsured. Surveys have found that as many as 60% of homeowners have policies that wouldn’t fully cover their needs. Of those people, the average homeowner would have to pay out of pocket for nearly 20% of costs in the event their home was damaged and needed to be rebuilt.

When it comes to comparing policies, the first thing to know is market value policies only provide enough to cover a home’s current cash value. That’s why it’s important to look for a policy that can cover a total loss. Second, be aware that all policies have exclusions. You need to know what these exclusions are and then fill in any applicable gaps with additional coverage. Another essential to keep in mind is the power of bundling. It’s often possible to get a far better deal by carrying two or more policies with the same provider.

How to Choose Wisely Without Getting Overwhelmed

Working with the right professionals throughout the process of buying a home will help make the experience as manageable as possible. If you want to work with a trusted Cincinnati home insurance provider, we encourage you to meet our team!