Top 5 Insurance Tips For The First Time Home Buyer

Top 5 Insurance Tips For The First Time Home Buyer

Top 5 Insurance Tips For The First Time Home Buyer

Buying your first home is undoubtedly a very exciting time for a lot of people and it’s understandable that you may feel overwhelmed during the entire process. In all this excitement, what are you going to do first: chase the right mortgage or look for the best property? On top of that, where would a real estate agent fit into the picture?

Because there are so many things to keep in mind, a large percentage of first-time property buyers don’t even take finding the right NY Homeowners Insurance into account when buying their first home, because they have no idea how important it is to close on their property.

That’s a big mistake though since the cost of home insurance in NY can add up quickly and it’s certainly going to show in your monthly mortgage payment along with payments you make towards your property taxes, loan interest and loan principal. What this means is that when you’re going to look for a house, you need to be aware of the basics regarding insuring your property and the factors that can increase the cost of coverage. om7inW 1

After you finally manage to find a house that you’d like to buy and negotiate the price, you need to think about getting an insurer. Since not all policies are created equal, there are quite a few things you need to be aware of before you settle on a provider. By using the tips below, you’ll be able to not only save good money in the long run but also have the peace of mind that you have quality coverage to protect the most significant investment you’ve ever made.

1) Give yourself credit

If there’s one thing that’s vital when it comes to getting a favorable interest rate on your mortgage that is your credit score. Are you aware this is also a major factor for finding the most competitive home insurance premiums?  Most New York Homeowners Insurance providers will tier you based on your credit score.  A higher insurance score will give you a more competitive tier and ultimately a better rate.

Keep in mind, every insurance company has a different algorithm for determining what tier you are eligible for, so make sure you shop the market.

2) Comparison shopping is the way to go

Since there are many insurance providers out there, the price is certainly varied and that is why you need to shop around to find the best one. Comparison shopping is very much recommended since it allows you to save good money in the long run by simply getting quotes from various carriers.  Price is one consideration but it shouldn’t be the only.  Check the insurance company financial rating ( ).  The goal is to get the best “value” for your premium, not just the lowest price.

3) Skimping on coverage is not a good idea

It’s true that saving money on home insurance policies can be quite simple, but you should never skimp on coverage. For instance, a standard home insurance policy can protect your home from a wide range of potential risks including; fire, wind, hail, lightning, and personal liability. It’s always smart to speak with an insurance professional so they can assess you and your property to determine the exact coverage options that are best for your situation.

One thing that you certainly need to pay attention to though is the amount of dwelling coverage the policy provides. It’s recommended that the coverage amount is enough to completely rebuild home, especially if you live in dangerous areas where there’s a risk that your house may be destroyed by a covered peril, such as a hurricane. Since this amount is usually different from the buying price, you may want to go online and use a dwelling coverage calculator to get a good idea of the amount of dwelling coverage you should get.  On Long Island, NY a good start is $200 per living square foot of the home.  If the construction is superior quality, you can double or triple that number to come up with an accurate figure.

4) Bundle your policies

Did you know most insurance companies offer a major discount for having both home and auto insurance together?  Discounts can range from 5%-25% and can be a great way to shave some more premium off of the rates.  On top of that, if you have a boat or even multiple cars, you can bundle all of them together with the same carrier and save big in the long term.


5) Evaluate risks as you look

It’s very important that you take into account the risk each home proposes when you’re evaluating it. For example, if the property is a high-risk flood zone, then you should know that flood is an excluded peril under most homeowner’s insurance programs. If you want to be protected, then you’ll need to buy a separate policy from the NFIP (National Flood Insurance Program).  Find out if your home is in a flood zone here  You’ll see a red box on the bottom right of the page.  If it says you are in a low-moderate risk zone than you are likely not in a high hazard zone.  If it says that you are in a high hazard zone you should call a flood insurance expert to get more information.

You may find it hard to believe, but even a few inches of flood water can cause damages that can easily amount to tens of thousands of dollars.

Does one of the properties you plan on buying have a trampoline or a swimming pool?  If so, it could affect your eligibility for the best rate.  In some cases, you would be ineligible for coverage if, for example, your pool was not properly fenced or you have a diving board.

Keep in mind that even experienced home buyers may get confused by the process. However, if you keep your eyes open for possible issues, ask many questions and take your time, buying your first house is going to be a smooth and hassle-free process.


For more information on NY Home Insurance coverage, contact Coastal Insurance Solutions at 631-782-3175.  Coastal Insurance will provide you with 10 free quotes from top-rated competing insurance companies.



View the Coastal Insurance Video Library  to find helpful video’s explaining everything from, how to save money on Homeowners Insurance to an easy explanation of Flood Insurance. Call today (631-782-3175) to speak with one of our underwriting experts.  Fast Quotes, A.M. Best Rates & Free Advice.

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