Purchasing your new home presents many new responsibilities, and one of those is to insure your house properly. It’s crucial that your new home is protected in case something happens. Here are three common home insurance mistakes new homeowners sometimes make, but you should avoid.
1. Not Securing Coverage Before Closing
Shopping for home insurance doesn’t wait until after closing. You’ll want the home insured when you take ownership of it, and your lender will normally require insurance before closing. You very well might not be able to close unless an adequate home insurance policy is in place.
We at Rancho Del Sur Insurance Services Inc. typically recommend that homebuyers in San Diego, CA, contact us a few days to a few weeks before their closing date. We can set up a policy that takes effect on the closing date.
2. Not Securing Enough Dwelling Coverage
Dwelling coverage is what pays to rebuild your house if it’s destroyed in a covered incident, and you’ll want lots of it. In fact, you probably want more dwelling coverage than your home’s value at the time of purchase.
The recent forest fires have shown how much construction costs can increase throughout California, including in San Diego, CA, after a disaster. Getting extra dwelling coverage may make it easier to rebuild if your home is destroyed at a time when construction costs increase.
3. Not Securing Water Damage Coverage
Many homeowners assume water damage is automatically covered, but standard policies don’t always include it. Double-check that your policy includes water pipes, hot water heaters, and other plumbing coverage. (Flood insurance is purchased separately if you need it.)
Insure Your New Home in Southern California
If you’re purchasing a home soon, contact us at Rancho Del Sur Insurance Services Inc. to set up a home insurance policy that’ll protect your place well.
