first time homeowners buying home insurance

A Guide to Finding Insurance After Buying Your First Home

Are you in the market to buy your first home and trying to decide about insurance coverage? Forty-seven percent of homebuyers in Canada are doing it for the first time!

Being a first-time home buyer can be an exciting but nerve-racking time in your life. That's because there are many moving parts to the transaction and it's something entirely new to you. 

Before you begin searching the real estate market for your dream home, read about buying your first home and the most important insurance options.  


Home Insurance Coverage

The average budget of a first-time home buyer in Canada is $317,514! A home is often the most expensive purchase someone makes during their life. The sheer cost of a home makes it important to protect your asset with home insurance.

If you are like 40 percent of Canadians, you will have a mortgage on your home. Mortgage companies usually require you to have home insurance coverage.

Besides being a wise financial decision, home insurance coverage is essential to provide protection from financial loss if your property or belongings are damaged in the event of theft, fire, a wind storm or other events. Without an insurance policy, you'd have to pay out of pocket to restore your property.

Importance of Insurance for First-Time Homebuyers

Buying insurance for your home is important for every owner - but especially for first-time homebuyers. The home you choose to buy is a major milestone in your life and you can't afford to be underinsured.

Depending on the home insurance policy you buy, you can cover the replacement cost of the structure as well as your personal belongings. Your policy may include coverage up to a certain dollar amount for items lost or damaged during an accident at your home.

As a first-time homebuyer, this peace of mind can be priceless!

Liability Insurance

One of the most important kinds of home insurance is liability coverage. This coverage will help protect you in the event someone is injured on your property and files a claim.

For example, if you host a party on Canada Day and someone slips and falls by your pool, they may suffer a serious injury. Although they may have been at fault to some extent, they could still file a lawsuit against you as the property owner.

Protect yourself by having liability insurance that will kick in to help cover potential damages by a house guest later.

Coverage Levels

Your coverage levels for insurance plans are a big decision as a first-time homebuyer. The coverage amounts you pick are a combination of your budget and need.

You need to consider things such as annual premium cost, the likelihood of a claim, and how to protect your assets. If you have a lot of financial assets outside of the home you will buy, don't overlook the importance of having enough coverage!

Work With a Trusted Broker

A trusted broker will help you navigate the complicated world of insurance policies. They can speak with you about your options and why one choice will be better or worse for you than another.

Talk with close friends or family members about their experience working with a particular broker. What did they like most or least about their working relationship?

The answer to these questions will give you peace of mind that you are narrowing down your decision to work with the best broker in your area.

Buying Your First Home and Insurance Matters

There is a lot of things on your to-do list when you are buying your first home. Besides finding the best home in an area you love, there are also other decisions like how to finance the home and how to protect your investment.

At Tailor Made Insurance, we are your source for the right insurance coverage in Sherwood Park, St. Albert and surrounding areas. Our brokers are dedicated to giving you a personalized experience as you shop for insurance.

Get in touch with us today to learn more about our services and how we can help you with all your insurance needs!