As a first time homebuyer, you might not know that your lender will require you to obtain homeowners insurance when you buy your first home. You will be required to insure your home continuously until the mortgage is paid off.
When you purchase homeowners insurance, you buy a package that combines several types of insurance into a single policy. You can purchase additional coverages and riders also. There are a lot of choices, so you should have an insurance agent explain the policy in detail to ensure it offers adequate protection for all of your needs.
First time homebuyers need to be advised that they should purchase a policy which includes replacement cost coverage. Replacement cost is the amount it would take to replace or repair your home with materials of similar kind and quality, without deducting for depreciation.
A first time homebuyer should shop around when purchasing homeowners insurance. It is possible to get different rates from different agencies.
For a more detailed discussion on this topic, please go to http://solonglandlord.com/steps-for-first-time-home-buyers-to-take/homeowners-insurance-for-first-time-homebuyers.