Home Insurance For First-Time Buyers

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The following is a guest post written by Katie Sheeran of the insurance website, Policy Expert.co.uk. Enjoy!

Buying home insurance for the first time can be a daunting and expensive task. However, insurance companies can often look favourably on first time buyers as they have no previous claims and they typically have smaller properties – often resulting in lower premiums.
To help you get the very best deal and save money on your home insurance, take note of these simple tips:

Compare Online

To help get the best deal on your home insurance, try comparing home insurance quotes online. This can really help you find the right deal at the right price. Remember to always compare home insurance quotes  on a like-for-like basis – looking at policy features as well as price. Even if you don’t purchase from them, these websites are a great starting point en route to purchasing first time home insurance.

Get Insurance Savvy

Knowing what affects your insurance premium could help you find a cheaper deal that still meets your insurance needs. Insurance companies will look at how risky your home is and then base the insurance premium on this. So, in order to get a lower quote, make sure your home is as safe and secure as it can be. By ensuring you have good quality locks on your doors and windows and an alarm that links to a security company or a neighbourhood watch scheme, you may be able to lower your home insurance premium. While this may cost a little bit extra now, it could well pay for itself with a lower home insurance quote.

Every Little Bit Helps

When you’re buying your home insurance, you’ll normally be asked how much excess you’re willing to pay. This is how much money you agree to pay should you ever need to claim. If you pay more excess, your premium will usually be reduced. But make sure you’d be able to pay that excess in the event of a claim.

Know What Insurance You Need

One thing to always look out for when purchasing home insurance for the first time is accurately calculating the amount of contents cover you need. If you overestimate it, you could be paying for too much cover that you don’t really need. Be sure to do a thorough analysis of how much contents cover you need for all your belongings before you make your home insurance purchase.

How about you all? What were the important factors for you when you were buying homeowner’s insurance? What advice would you offer to first-time home purchasers? 

Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
  • When I was going through the process of getting homeowner’s insurance for my condo last year, I never did any comparative analyses on if new vs. existing home owners paid less on home insurance. It’s an interesting question though! What’s everyone else’s take on this?
  • @ Comparing Online – I definitely agree with this technique. When I purchased my homeowner’s policy, I went online to the websites of pretty much all of the major national insurance carriers (Nationwide, All State, Geico, Shelter, etc) to find out the cost of the monthly premiums. This gives you a good idea of the market price for insurance so you can know how hard or little to bargain when you are making your final decision.
    • Also, I think it’s a good idea to place an automatic reminder on your calendar once a year to shop around the homeowner’s insurance market again to ensure you are getting the lowest price. Don’t feel like you have to be locked in to one policy for the entire time you live in your residence.
  • @ Getting Insurance Savvy – It’s really amazing what can cause your monthly homeowner’s insurance premiums to go down. For example, having smoke detectors and a fire extinguisher can lower your cost!
  • @ Amount of your deductible – I am a big believer in having a fairly large deductible for my homeowner’s insurance, and then making sure I have an adequate amount of cash in my emergency fund in order to cover the deductible. By having a high deductible, you can decrease your monthly premium payments significantly.
  • Last year, when I was deciding which homeowner’s insurance policy to take, I wrote an in-depth post about the various considerations one can think about when purchasing housing insurance. You can view this post at the following link – Homeowner’s Insurance. This was a pretty long post, so I’ve tried to summarize some of the key points below:
    • Homeowner’s insurance has three major components – 1) personal property coverage, 2) dwelling coverage, and 3) liability coverage. All are important factors to consider when deciding how much of an insurance policy you need.
    • The best way to determine how much coverage you need is to take a written and pictorial inventory of the components of your home.
    • Homeowner’s insurance covers most common “perils.” However, damage due to floods, earthquakes, and pets is not covered, unless your area is a declared a national disaster zone by The President. If it is declared a disaster area, FEMA insurance will cover you (hopefully).
***Photo courtesy of http://farm4.static.flickr.com/3388/3185860301_966ef0aeaf.jpg


  1. Having a security system, making sure the trees around the house are trimmed up so they won't blow over and cause damage and understanding what you actually need the policy to cover can all also save you money
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    • Interesting. I didn't have to answer any questions about trees around my condo because damage to the exterior is covered by the condo homeowner's association policy. Do the insurance companies send a representative out to your house to assess potential dangers such as that before buying a policy for a stand alone home?
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  2. I'm a huge believer in having a large deductible to lower your rates. I have a large deductible because I don't plan on claiming anything unless it exceeds it anyway!
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    • I hear ya Robert! My deductible is $2500. I think the largest I could do was $5000. But, having it higher saves me a ton of money!
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