How to shop for homeowners insurance: A simple guide for homebuyers

Buying a home is exciting, but picking the right homeowners insurance can feel a lot trickier than applying for your mortgage. With so many companies and options out there, it’s easy to get overwhelmed. Plus, insurance costs are on the rise. According to CNBC, insurance premiums are up about 8 percent across the country, and in places like California, they’ve jumped as much as 21 percent!

Even though insurance costs are rising, it’s not something you can skip out on. Your homeowners’ insurance protects your home from fire, theft, and weather damage. That’s why it’s worth taking the time to find the right policy.

Compare multiple insurance quotes
The first step in shopping for homeowners’ insurance is to compare quotes from different providers, including local and national brands. Insurance rates and coverage can vary significantly depending on the company, your location, and your home’s features. Don’t settle for the first offer you receive; instead, solicit multiple quotes and compare them. Always take the time to understand what each policy covers and the deductibles you’ll be responsible for if you need to file a claim.

Understand what’s covered and what’s not
Not all homeowners’ insurance policies cover the same risks. Standard policies typically protect against fire, theft, and certain types of weather damage; however, flooding and earthquakes often require separate coverage. Cheaper policies may have coverage limitations that you may need someday, while more expensive policies may have significant deductibles or approval clauses. Review each policy carefully to understand what is included and what is excluded, as this can help you avoid unexpected costs later on.

Save money by bundling home and auto insurance
Always check to see what deals you can get by bundling services. Many insurance companies offer discounts when you bundle your home and auto insurance policies. This can help reduce your overall premium, simplify your insurance management, and make it easier to manage all your insurance needs in one place. It’s also a good idea to check in regularly with your insurance company each year to see if you qualify for new promotions or deals too!

Improve your home’s safety to lower premiums
Having safety features like a security system, smoke detectors, or a newer roof can help lower your homeowners’ insurance costs. These updates reduce risk and demonstrate to insurers that your home is well-protected. As you make improvements to your home over the years, be sure to update your insurance company to see if they can lower your costs or if you’ll require additional coverage.

Plan your buying budget with insurance costs in mind
Homeowners’ insurance is an essential component of your total homeownership costs. As you prepare your home shopping budget, make sure to factor insurance premiums in along with your mortgage payment, taxes, and utilities. It can all add up to more than you think, so you want to have a good idea of what you can afford before you buy!

Get the support you need to buy a home
Buying a home comes with a lot of moving parts, and choosing the right homeowners’ insurance is one of them. With so many options and rising costs, figuring out what coverage you need can feel like a challenge, especially if you’re a first-time buyer trying to take it all in.

That’s where we come in. Your PRMI loan advisor is here to help you take care of one of the biggest steps: securing your mortgage financing. We’ll walk you through your options, explain the process in clear, simple terms, and ensure you feel confident as you move toward homeownership. If you’re ready to take that first step, reach out to schedule a consultation. We’re here to help when you’re ready. https://www.primeres.com/brentroy