First Time Home Buyer's Guide to Home Insurance

Shopping for home owner's, or hazard, insurance for the first time can be scary. You know you need it, but there are just so many questions to answer. How much coverage do I need? What is my deductible? Do I even need to have home owner's insurance? Don't worry. Here are a few ideas to get you started.

Basically, home owner's insurance is what you will need in case you have a fire, or your home suffers damage caused by other acts of nature like wind, hail, or water damage. Standard home owner's insurance will also cover the other structures on your property, the contents of your home, and your own personal liability, in case some one is injured on your property.

The first thing to do when looking for home owner's insurance is shop around. Don't go to an insurance agent just because your Father goes there, or based on any other advice. Do what is right for you . One good place to start is your car insurance dealer. They may also offer home insurance, and you might be able to get a package deal if you buy both your home and car insurance through them.

There are a few factors that will determine how much you will pay each month for the insurance, your monthly premium. Factors such as: deadbolts, fire extinguishers, smoke detectors, security systems, etc. Install as many of these items as you can afford. It will reduce your payments. Also, a good idea is to have a higher deductible. Choose as high a deductible as you are comfortable paying. This will help lower your premiums.

Insurance companies will also give discounts to homeowners that don't smoke. So if you are a non-smoker, remember to mention that. Also, keep in mind that the dog you own could have an effect on your monthly premiums. People who own dogs such as Doberman Pinschers, Pit Bulls, German Shepherds, and Rottweilers generally pay more for their home owner's insurance. Some insurance companies won't even cover you at all. If you own one of these breeds, find out what the company's policy is on them before choosing to do business with them.

There is no federal or state laws requiring anyone to have hazard insurance. The mortgage lender you go through will more than likely require you do. It would be a horrible idea for anyone to not have any home owner's insurance at all. The entire idea of insurance in planning for life's unfortunate accidents, mistakes, and events that are beyond anyone's control.

The last thing you need to know is that when you sit down to sign the paper's to finalize your hazard insurance, make your broker go over every detail of your policy. Set aside enough time to go over every point with a fine toothed comb. Don't be afraid to ask questions. If something doesn't seem right, speak up. You can walk away from the table if the terms of the insurance seem unfair. Trust me, there are dozens of other insurance agents who would love to have your business.