5 Tips For First-Time Home Insurance Buyers


When you start the journey of looking for home insurance for the first time, you may find yourself in over your head. It is a process that you should not ever enter into without taking the time to educate yourself on the process. That means you need to take the time to read as much information as you can find on the internet to learn all about it.

First, you will need to read through the following 5 tips for first-time home insurance buyers. They will guide you on your way to that first policy, which will help you get through the task efficiently with no significant problems.

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1) Figure Out What Type Of Home Insurance You Need

This is the part where you need to make sure that you understand your options. There are many sections to a home and contents policy that you need to be aware of, but for now, you need to understand the basic choices you have when you first attempt to get a policy.

  • Building Insurance – This policy only covers the cost of repairing or replacing the home and any permanent structures on your property. 
  • Contents insurance – This policy will cover any of your material items found within the buildings on the property and the main house.
  • Building and Contents Insurance – This policy will cover any damage to the buildings on the property, the home, and all the contents in those buildings.

Now that you understand the three types of home and contents insurance you can get, you need to take a step back and do some digging. You need to know how much your house and buildings are worth on the market.

The best way to do this is to hire an independent licensed inspector and have them give you an accurate number. When you get insurance to cover that amount, make sure you add a little to the value to allow for market fluctuations and the increase in the cost of materials used to build and repair your home.

2) Update Your Monthly And Yearly Budget

You should have a budget written out for the month and year and follow them. This will give you an idea of how much money you have left over, providing you with an amount you can spend on a home and contents policy. 

This amount can fluctuate by the month, which is why you also want to have a yearly plan. This will give you a reasonable estimate of the year, which you can divide by 12 if you opt to pay by the month. Just so you are aware, you pay more money in the long run if you pay by the month because the insurance carrier will tack on some extra fees.

3) Set The Policy Up Early

One common thing first-time home insurance buyers do is wait until the last minute to set a policy up. The proper way to do it is to get a policy going as soon as possible. If you are buying a home, you will need to wait until you know your offer has been accepted. Then you will want to get a policy set up. 

Do not let the lender talk you into using the policy that they can tack onto the payment. This usually is not more than the bottom-line policy that benefits the lender, not you.

4) Compare Your Home Insurance Options

Now the fun part begins. If you approach the process correctly, this part of the task will be easy and can be very satisfying. You want to go online and find a platform that compares insurance carriers for you. To know how much home and contents insurance is, you must go through the options the platform sends you.

The best part about this is that they do all the hard work. Their platform will take some information from you and then match you with some of their partners that may be willing to work with you. All you will have to do is sit in front of the computer or mobile device and go through the offers, leading you to the next vital step.

5) Travel Into Your Future

Most home and content insurance buyers make one simple mistake, which can cause severe issues throughout the first year of the policy. You may not be planning on doing any major work on the house you are buying, but you will likely want to make some changes unless you have the home built from the ground up. 

When looking at policy offers, you need to plan for the future. You will want to be able to cover the house’s value right now, plus a little extra to cover fluctuations in the market values of everything involved. Plus, you will need to have some room to wiggle when you decide to add an improvement to the house or if you choose to buy an expensive item that needs to be covered under the contents part of the policy. Do not get yourself stuck in a yearly contract that will end up not covering what you need it to cover.


These 5 tips for first-time home insurance buyers can help guide you to an excellent policy that covers what you need at an affordable cost. If you ever come to a place in the process that makes you feel lost, take a step back and analyze why. 

If you need to ask questions, do it. Even if you need to retain a lawyer to help you out. Remember that the only dumb question is the one that didn’t get asked.

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