Purchasing Homeowners Insurance

When buying your first home, there are so many parts to consider. One of the most important things you want to make sure that you have lined up is a good homeowners insurance policy. It is important to make sure that your property is fully protected. This might come as a surprise to some people, especially to those who are first time homeowners. It might not be at the top of your list of things that need to be done, but that doesn’t mean it is any less important. In addition, there is also renter’s insurance, as well as a home warranty. It is extremely important to research this well, and find a policy, as well as a company that fits your needs.

4 Major Factors That May Affect Your Homeowner’s Insurance

These are some factors that may affect your homeowner’s insurance that you get:


  • Dwelling

  • Personal property

  • Liability

  • Optional coverages


There are a number of things to consider when deciding which policy you choose. The dwelling is also known as the “outside of your home”. Damage from a wind or lightning storm would fall in this category. The personal property part of your policy would be your electronics or appliances. The liability part would cover somebody if they get injured while on your property. The optional coverages would be anything having to do with water back-up or your landscaping.

Principal & Premium

It is also important to have a good understanding of principal as well as premium. These are two important areas to look at when looking for insurance. This will help you to better understand this process. The principal is defined as the amount borrowed from the lender, minus the amounts repaid to the lender. Another way to look at this is by way of Principal residence. This is simply known as the “place where somebody lives”. The Investopedia article, Principal Residence, breaks this down and explains it in detail.

Insurance Premium

The insurance premium is the amount of money an individual or business pays for an insurance policy. Once earned, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims being made against the policy. The article, Homeowners Insurance Premiums, by the Policygenius, discusses the following:


  • How homeowners insurance premiums are determined

  • Factors that affect your premiums

  • What’s the average premium in each state?

  • How to pay homeowners insurance premiums

  • What happens if you don’t pay your premiums?


The more coverage you have the better off you will be. This Allstate video provides a breakdown of the different things that a policy covers. There is much more to consider when you begin searching for good insurance. Homeowners Insurance: Protect Against the Unexpected, is a helpful article by NerdWallet that takes an in-depth look at what is covered by insurance, as well as what is not covered. It also explains the importance of purchasing additional insurance.

Finding A Good Broker

You also want to make sure that you find a good broker. Be sure to research this well and find one that is knowledgeable. Finding a broker could be a headache in itself. There are many types of brokers as well as many questions to ask. An article from United Policyholder called, Picking A Good Insurance Agent Or Broker, breaks this down in detail.

It is important to make sure that you purchase homeowners’ insurance while in the process of buying your first home. Doing so will protect you and your family in the long run. Additionally, it will avoid you having to break the bank if something should happen. This will alleviate stress, as well as help you to be prepared should something happen.

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