Insurance Tips for First Time Homebuyers

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Research before you buy
Know what you’re getting into and what risks are involved before purchasing a house. A good place to start is the Comprehensive Loss Underwriting Exchange (CLUE) report for the property. CLUE reports will tell you the claims and losses on the home for the past seven years. Also, research the location and look into aspects that can affect your premium, such as the neighborhood crime rate and distance to a fire station.
Know the difference: replacement cost vs. market value
Your insurance will traditionally be based on the replacement cost of your home. Replacement cost is the cost to rebuild your home with similar type and quality materials. You’ll want to be sure that this amount is enough to cover a total loss. A market value policy only covers up to the current cash value of your home. The cost of clearing debris and rebuilding your home will most likely be greater than its cash value, so a market value policy will only cover a portion of these expenses.
Fill in coverage gaps
Every policy has exclusions, and it’s important to fill in coverage gaps that can affect your unique needs. For example, flood, earthquake and back-up sewer damages aren’t typically covered in a standard policy. If you’re anticipating any of these issues, it may be wise to add additional coverage.
You also may want to consider adding extended replacement cost coverage for your dwelling or an umbrella policy for liability coverage. These broader policies set a limit above the amount of coverage you receive from your typical homeowners policy.
Bundle up
Often, insurance companies will offer a discount on one policy if you also purchase additional policies, such as auto or life insurance, with their company. This practice is called bundling and can potentially help you save money on your premium.
Be smart about filing a claim
Filing a claim is an essential step to recovering from a loss. And there are many things you can do to create an easier and more effective claims process. First, keep good records. Document important conversations and save receipts and contracts. Also, keep a good inventory of your home—you can even use an app or a website to keep track of your items digitally. When the time comes to report a claim, be sure you have all of this information plus other specifications about your home on hand and ready to pass along. Then, file quickly. Insurance providers have varying amounts of time allotted to report a claim. Be sure to file within these time limits to ensure that your loss is covered.
Keep up-to-date
Review your policies every year. Changes to your home and even your neighborhood can raise or lower your premium. If you’ve made an addition to your home, such as a finished basement or swimming pool, you’ll want to increase your policy so that, in the instance of a large property or liability loss, you’re not underinsured. On the other hand, if risks have been reduced, your premium could decrease. Additions to your home, such as a new roof, burglar alarm, fence or pool cover, can reduce risk and potentially lower your premium.
Talk to an expert
The best way to determine your coverage needs is by speaking with an independent agent. Your agent will review your situation, house and location to make the best policy recommendation for you. Your agent can also explain the details of your policy and optional coverages you may want to add.

Krueger Insurance Agency
11418 Bellamy Road
Berlin Heights, Ohio 44814
Phone: 419-588-2335
Email: agencymail@kruegerins.com

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