Home insurance might not be the first thing you think of when you begin shopping around for a mortgage loan. However, the two are closely linked, so it bears a lot of thought.

You might be wondering why home insurance is important. Well, home insurance is a vital part of a mortgage lender so that they can protect their loan collateral. You must be just as eager to find the home insurance that works to protect your investments.

So, whether you’ve previously owned some property or are looking to purchase your first ever home, these are 5 things you should know when buying home insurance.

1. 1. Cheapest Quotes Aren’t Always Best

At the outset of buying home insurance, it might feel like your legal bills are piling up. Even if this is the case, you must make sure not to sell yourself short when taking out home insurance.

Cheap deals can be pretty basic insurance policies and might not include all of the extra features that you need. This can leave you significantly under-insured if you are needing to make a claim.

The cheaper cover is often the least desirable option and will not provide you with all of the protection or benefits that are on offer. This is when you should shop around to find the best quote for your home insurance.

1. 2. You Could Qualify For Discounts

Similarly, you may also qualify for some discounts.

Lots of companies will try to entice new customers by using discounts, so it’s always good to shop around before committing to a particular home insurance provider.

If you have an insurance policy with another company, including car or life insurance, then there’s a possibility you might qualify for a multi-policy discount if you choose to also take your home insurance out with them.

You may also be offered a discount if you have additional security features such as smoke detectors and security cameras installed in your home.

Just keep an eye out for any of these premium discounts.

1. 3. The Difference Between Insurance Types

There are many different types of home insurance coverage out there so you must ensure that what you choose covers all of your needs.

• Buildings Insurance covers the cost of repairing or rebuilding your home if it is damaged. It’s compulsory when taking out a mortgage.
• Contents Insurance can be taken out with a buildings insurance policy or by itself. It covers personal belongings and items that remain within the home. It’s great for protecting any valuable items against damage or loss.
• Specified Items mean that only certain items will be covered on your policy. Some might not be covered at all. Make sure you specify the items of the highest value when taking out home insurance.

If you’re looking to start shopping around for home insurance, you should take a look at Assurance home insurance quotes.

1. 4. Your Credit Score Might Impact Your Premium

You may be under the impression that the location of your home and your contents determine what you will pay for your insurance premium. While these factors are considered to be quite important, your credit score plays a huge role in determining your premium.

A few states ban the practice but, in the majority of cases, your credit history does impact the amount you pay for your home insurance premium. So, the better your credit score is, the lower the premium will likely be!

Work towards maintaining a great credit score rating even if your mortgage loan is in place. It could save you lots of money in the future!

1. 5. You Must Cover All Your Assets

You may be surprised to find that the contents of your home are more valuable than you think. These valuable items can include anything from antiques and fine art to designer clothing, musical instruments, and state-of-the-art appliances. 

The best way to ensure you get adequate cover for your home is to walk around each room and take stock of all your possessions. Include photographs, videos, detailed descriptions of each item, and even receipts if necessary.

It sounds like a time-consuming task but your belongings could add up to a considerable amount. You’ll also want to make sure your home insurance covers you in case of an emergency, so keep your insurance provider up to date with any big purchases. 

Summary

Buying home insurance can be a lengthy process, but it is a necessary step in securing the home of your dreams and protecting all of your assets. Keep an eye out for discounts and deals by various providers so you are getting the best deal possible.