If you’re considering buying your first home, you probably have a lot of questions about homeowners insurance. The housing market is in recovery, more consumer protection is in place, and there are still good bargains available, so it might be just the right time for you to buy. A home is most people’s biggest investment, and it’s important to protect it with the right insurance. But how do you decide what’s the right coverage for you, or choose an insurance company to work with? There is no one-size-fits-all solution, but here is a quick overview to help you get started.
– All homes need to be insured. Most mortgage lenders require a home to be insured in order to protect the assets that they legally own and homeowners need insurance to protect their property, their possessions, and themselves. Often the premium for homeowners insurance is included in the mortgage payment and managed out of an escrow account.