Step 22 to Buying a Home: Set Up Your Homeowner's Insurance
It's time to think ahead and protect your new investment!
One of the things the mortgage underwriter will require you do during the underwriting process and prior to closing is to set up your homeowner’s insurance. To allow yourself time to shop for insurance and find the best coverage for you, it's a good idea to get a start on this task early. For most people, your home is the biggest purchase you will ever make and you want to make sure it’s properly insured.
Our biggest piece of advice is to shop around for your homeowner’s insurance. Rates can vary dramatically, and while you may not want the cheapest coverage (sometimes you truly do get what you pay for), you will want to make sure that the insurance coverage is right for the home you are purchasing. We recommend starting with the insurance company that insures your car -- get a quote from them first and ask if they offer "bundling," as you’ll likely get a discount for carrying multiple policies through them. After that, reach out to two or three other companies -- ask friends and family for recommendations and referrals of companies they trust. (And remember to ask every company if they offer bundling discounts -- you may find better coverage for your house and your car(s) with a new company and decide to switch over).
The two insurance providers we recommend you reach out to for quotes are:
- Corey McLane - The Rhoads Group
- Rob Young - Concierge Insurance
Here are a few articles that may be helpful to you in your process of shopping for homeowner's insurance:
Experts recommend that your homeowner’s insurance policy effective date should be the day BEFORE you close on your new home. That way if something catastrophic happens (for example if, heaven forbid, your new home burns down while you’re at closing), you’ll be covered. Also, be sure to get proper documentation from your new homeowner’s insurance company to provide to your underwriter as soon as possible; they will require proof of insurance before they’ll give you final approval for your loan.
Have any questions? Call or text us at 404-994-2181 or email Maura(at)BuySellLiveAtlanta(dot)com