Is Home Insurance Important?

**jjayinla** · 01-03-2012, 12:02 PM

I am in the process of buying my first home and want to know how important insurance is. I was told Globe Life was a good company to sign with but I would life some advice. Any feedback?

**Greg** · 01-03-2012, 12:49 PM

If you are getting a loan you have no choice, you have to have insurance. If you are paying cash you want to protect your investment.

Get out the phone book for the area where the house is located and call all the home insurance companies up and ask for quotes on price and coverage. Pick the best one. You will have to have a contract on a house before they can give you accurate cost quotes.

You only need as much coverage as the building is worth. You do not need insurance on the part of the purchase price that covers the ground/lot.

**CC Lifestyle Realty** · 01-05-2012, 06:40 AM

Just like with car insurance you can adjust the deductible. Personally I believe everyone should increase the deductible to a high level unless you live in a high damage prone area. Studies have shown that provided you are financially responsible you save far more money in the long run with higher deductibles. Some people want the piece of mind however that everything is covered. You pay far more to have that comfort level however.

Call around and do your research. Also realize that insurance companies are now getting smart and will give you a good rate the first year then increase in the following years. If they do that you can always change to another company. Nothing says you must stay with one.