Buying your first home is a very exciting time but it can also be very stressful. I still remember going through the process of picking out a house. My husband and I must have looked at fifty houses before we decided on one. And then there were the bidding wars. Hold your breath and keep your fingers crossed.
Once we were finally under contract, that's when the chaos erupted. It all seems like a big blur at this point. The word that keeps popping up is documentation. That's right, requesting documents from the mortgage guy, the realtor, and last but not least the insurance person. I was so overwhelmed by the entire process that reviewing coverages or understanding the type of policy I was getting was really not high on my priority list. I just wanted to close on the home. I think many homebuyers can relate to this scenario all too well. The truth is as consumers we are bombarded with so much information, our brain goes into information overload and we simply cannot process everything. Let's face it, insurance is not something that people like to talk about. There are a few exceptions of course... but most people think about their coverages if they have a claim. I am here to tell you that while we want brush the insurance policy aside and get the cheapest policy on the market, it's not in our best interest. Here is the thing, you are making a huge investment! It's probably the biggest investment you have had thus far. It's essential that your coverages are adequate to protect you in the event of a loss and the company you choose is a highly rated company that will actually be there for you when something happens. Especially in the first year.
I don't know what it is about the first year of owning your own home but it seemed to me like everything was breaking down in the first year at my house. Our AC went out. The washer overflowed ( that could have been horrible. My five year old pointed out that there was water all over the floor. That's when panic set in. I threw all the towels I had on my brand new hardwood floors and then threw rice everywhere. I know what you are thinking. Google said rice helps to dry wetness. And it worked!) Luckily nothing major happened after that and we didn't file any claims. However everything is possible, especially when you have two kids and a dog running around. Believe me, I get it. That's why it is so important to take thirty minutes - not five minutes- to sit down with your agent and make sure you have proper coverage.