Understanding the Basics of Home Insurance for New Buyers

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As a new home buyer, it’s important to understand the basics of home insurance. Home insurance is a type of insurance that covers your home and personal property in the event of damage or loss. For new home buyers in New Hampshire & beyond, there are several factors to consider when choosing a home insurance policy.

Types of Home Insurance Policies

There are several types of home insurance policies, including:

1. HO-1: This is a basic policy that covers damage from specific events, such as fire, lightning, and hail.
2. HO-2: This policy covers damage from a broader range of events, including theft and damage from falling objects.
3. HO-3: This policy is the most common and covers damage from all perils, except for those specifically excluded in the policy.
4. HO-4: This policy is designed for renters and covers personal property, liability, and additional living expenses.
5. HO-5: This policy is a premium policy that covers your home and personal property for all perils, except for those specifically excluded in the policy.
6. HO-6: This policy is designed for condo owners and covers personal property, liability, and additional living expenses.
7. HO-8: This policy is designed for older homes and covers the actual cash value of the home, rather than the replacement cost.

When choosing a policy, it’s important to consider the level of coverage you need and your budget.

Liability Coverage

Liability coverage is an important part of home insurance. It covers you in the event that someone is injured on your property and sues you for damages. Liability coverage can also cover damage that you or your family members cause to others’ property.

For all of our clients in New Hampshire & the other states we do business, we always recommend at least $500,000 in Personal Liability coverage.  We also recommend an Umbrella Policy (excess liability policy), especially if you have significant assets that could be at risk in the event of a lawsuit.

Deductibles

A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Higher deductibles typically result in lower insurance premiums, while lower deductibles result in higher premiums.

When choosing a deductible, it’s important to consider your budget and the likelihood of needing to make a claim. If you have a high deductible, you’ll need to be prepared to pay that amount out of pocket in the event of a claim.

Exclusions

Every home insurance policy has exclusions, which are specific events that are not covered by the policy. Common exclusions include damage from floods, earthquakes, and acts of terrorism.

If you live in an area that is prone to these types of events, you may need to purchase additional coverage to protect your home and personal property.

Saving Money on Home Insurance

There are several ways to save money on home insurance in New Hampshire, including:

1. Bundling: Many insurance companies offer discounts if you bundle your home and auto insurance policies.
2. Improving your home security: Installing a security system or deadbolts can help reduce your insurance premium.
3. Raising your deductible: Increasing your deductible can lower your insurance premium.
4. Maintaining good credit: Many insurance companies use credit scores to determine insurance premiums.
5. Shopping around: It’s a good idea to get quotes from multiple insurance companies to ensure you’re getting the best deal.  At Portsmouth Atlantic Insurance, we represent over 30 different insurance carriers & will do the shopping for you.

In Conclusion

As a new home buyer in New Hampshire, it’s important to understand the basics of home insurance. There are several types of policies to choose from, and it’s important to consider factors such as liability coverage, deductibles, and exclusions when making your decision.

By understanding your options and shopping around, you can find the right policy to protect your home and personal property while also saving money on your insurance premiums.

Contact us today to get a quote for your new home and learn more about how we can help.  Give us a call at 603-431-4020 or email us at insure@portsmouthatlanticins.com to get started.