Buying a home comes with plenty of moving parts, and homeowners’ insurance is one decision you don’t want to leave until the last minute. Check out our guide below!
Questions? Reach out to one of our knowledgeable insurance agents. We’re eager to set you up with the right coverage and rate!
Knowing when to shop for coverage and understanding key policy terms, like deductibles, can help you avoid stress, make informed choices, and protect your investment from day one.
When Should You Start Shopping for Homeowners Insurance?
If you’re purchasing a home, the ideal time to start shopping for homeowners’ insurance is 60 days to one month before your closing date.
Starting early allows you to:
- Compare coverage options from multiple insurance carriers.
- Understand what protections you need based on your home and location.
- Avoid rushed decisions that could lead to coverage gaps.
Your lender will require proof of homeowners’ insurance before closing, and waiting too long can create unnecessary pressure, or even delay the transaction. Beginning the process early ensures your policy is active on time and fully meets lender requirements.
What Exactly Is a Deductible?
A deductible is the amount you pay out of pocket for a covered loss before your insurance policy begins paying the remaining expenses. Deductibles are applied separately for each claim you file.
For example, if you have a $2,000 deductible and experience a covered loss totaling $12,000, you would pay the first $2,000, and your insurance would cover the remaining $10,000.
When choosing a deductible, it’s important to understand the trade-off:
- Higher deductibles usually mean lower monthly or annual premiums.
- Lower deductibles typically result in higher premiums, but less out-of-pocket cost if you file a claim.
The right deductible depends on your financial comfort level and how much you could reasonably afford to pay in the event of a loss.
Why This Matters for Homebuyers
Shopping early and understanding how deductibles work puts you in control of your homeowner’s insurance decision. Instead of feeling rushed or confused, you can confidently choose coverage that fits your home, your budget, and your long-term goals.
At Cornerstone Insurance Agency LLC, we help homeowners navigate the insurance process with clarity and confidence. Whether you’re buying your first home or your fifth, our team is here to make sure you’re properly protected, without unnecessary stress.
This article is for informational purposes only. You should not act based on this information without first consulting with your insurance agent; if you would like a quote from a Cornerstone Insurance Agency licensed agent, contact us. We disclaim all liability for actions taken or not taken by you based on the contents of this article which is provided “as is.” Cornerstone makes no representation that this content is error-free.