Buying a New House is the Perfect Time to Review Home Insurance

Buying a new house is a significant milestone in anyone’s life. It marks the beginning of a new chapter, filled with excitement, anticipation, and a plethora of decisions to be made. Among these decisions, one crucial aspect that often gets overlooked in the midst of house hunting, mortgage applications, and interior design plans is home insurance. However, purchasing a new home presents the perfect opportunity to review and reassess your home insurance coverage.

Here are some compelling reasons why buying a new house is the ideal time to evaluate and potentially update your home insurance policy:

1. **Coverage Alignment**: Your new home may have different features, amenities, and risks compared to your previous residence. For instance, if you’re moving from an apartment to a single-family home, you may need additional coverage for the structure itself, as well as for potential liabilities associated with owning a larger property. Reviewing your insurance policy allows you to ensure that your coverage aligns with the specific characteristics and needs of your new home.

2. **Policy Limits**: As the value of your property increases with the purchase of a new house, it’s essential to reassess your policy limits to adequately protect your investment. Your previous coverage limits may no longer be sufficient to cover the replacement cost of your new home and its contents. Adjusting your policy limits accordingly can provide you with the peace of mind knowing that you’re adequately protected in the event of unforeseen circumstances such as natural disasters, fires, or theft.

3. **Discount Opportunities**: Buying a new home often presents opportunities to qualify for discounts on your home insurance premiums. Insurance companies may offer discounts for factors such as the age of the home, the installation of security systems, or proximity to fire hydrants and fire stations. By reviewing your insurance options, you can explore potential discounts and savings that may be available to you with your new property.

4. **Bundling Benefits**: If you’re purchasing a new home, chances are you’ll also need to consider other types of insurance, such as auto or life insurance. Bundling these policies with your home insurance can often result in significant cost savings through multi-policy discounts. Taking the time to review your insurance needs comprehensively allows you to explore bundling options and maximize your savings while ensuring comprehensive coverage across all aspects of your life.

5. **Policy Exclusions**: Home insurance policies typically come with exclusions, limitations, and conditions that define what is and isn’t covered. Reviewing these exclusions in light of your new home can help you identify potential gaps in coverage and make informed decisions about additional endorsements or riders that may be necessary to fill those gaps. For example, if your new home is located in an area prone to flooding, you may need to purchase a separate flood insurance policy to protect against water damage.

6. **Life Changes**: Buying a new home often coincides with other significant life changes, such as marriage, starting a family, or retiring. These life changes can impact your insurance needs and preferences. For instance, if you’re starting a family, you may want to increase your liability coverage to account for potential accidents involving children or visitors to your home. Similarly, if you’re retiring and plan to spend more time traveling, you may need additional coverage for vacant home protection or travel insurance.

In conclusion, buying a new house presents the perfect opportunity to review and reassess your home insurance coverage. By taking the time to evaluate your insurance needs in light of your new home and life circumstances, you can ensure that you have adequate protection in place to safeguard your investment and provide peace of mind for the future. Whether it’s adjusting coverage limits, exploring discount opportunities, or addressing policy exclusions, investing in the right insurance coverage is an essential step towards securing your new home and everything it represents.

Jeremy Hyde | Colligan & Company

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About the Author: Jeremy Hyde

Christian, MK/PK, Brother, Husband of a magnificent wife, Father of three sons and two daughters, Insurance dork, Sports and Racing fan, Competitor, Coach, Early riser, Grill-man, Yearner of sand dunes and Lake Michigan, Owner of a Yorkie named Gerald, Wannabe basketball player, Reluctant handyman, Car enthusiast, Admirer of passion and excellence and design...

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  4. Steven March 29, 2024 at 5:59 am - Reply

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