Congratulations on the house! As both a big investment and a big change in your lives, it’s important to get the right protection and understand how that coverage works. Homeowners insurance is as complicated and varied as the houses it protects, so learning as much as you can before you start shopping around can make sure there aren’t costly mistakes down the line. Learn four helpful insurance tips for first-time homebuyers from your friends at Safeside Insurance!

1. Know What Homeowners Coverage Gaps Are

It’s important to know that most policies won’t cover every kind of incident, with many only covering “named perils” and excluding others. A common excluded disaster is flooding. It’s important to know if the area you are in is susceptible to flood, including due to snowmelts, both of which can happen in Massachusetts. You also might want specific coverage for certain property and assets—see more about that in home inventories below.

2. Replacement Cost vs Actual Cash Value Policies

Homeowners insurance policies will typically reimburse the policyholder in one of two ways when property is damaged:

• Actual Cash Value: This describes the cost to replace an item minus how much it’s depreciated in market value. So, a $1000 PC you had might have a 10-year timespan, meaning if your policy covers replacement five years later, you’d only get $500.
• Replacement Cost Value: This coverage covers the amount it would cost to replace the property with the same/similar version at the current market price. If replacing that 5-year-old PC with a new model with comparable performance is $800, that’s what you’d get.

Note that in both these instances, your deductible would first come into effect. Learn more about premiums and deductibles in our blog, Picking the Right Insurance Premiums and Deductibles for Your Situation.

3. Take a Home Inventory for Better Protection

By taking a home inventory—a database of all your significant possessions, their estimated value, and proof of purchase—you’ll already be in a better place for your insurance. It makes it easier to file a claim when you’ve got the make and model of the lost item, and it also makes it easier to see gaps in your coverage. Since policies have payout limits, you may need special riders for valuable items like jewelry or electronics. And if you have a lot of property, you may need to increase coverage.

4. Look to Save with Insurance Bundling

If you’re a first-time homebuyer, this is also a great time to look into bundling your insurance. Not only bundling homeowners and auto insurance but also policies like umbrella insurance. These can provide additional liability coverage for your home, which is valuable for situations where you might have many guests or need deeper payout limits in coverage. Just make sure to avoid bundling insurance that doesn’t provide the right coverage.

Even with your first home, it’s essential to customize your homeowners insurance. The Safeside Insurance Agency has been helping first-time homeowners for over 30 years, along with renters, drivers, and business owners. We know the value of the right insurance for the right price and that everyone’s situation is unique. If you want to see the difference an independent insurance agency can make, contact us now or call us at (508) 753-8862.