Millennials are a very unique generation. This group of people is entering the home-buying market, some for the first time. Many are purchasing their first home now, even though they are a bit older. According to the Urban Institute’s Housing Finance Policy Center, the number of people buying a home between the ages of 25 and 34 in 2018 was 8 to 9 percentage points lower than previous generations. Now that you are ready to buy, though, what should you know about purchasing an insurance policy?
Stay Within Your Budget
When buying a home, remember that it needs to be affordable to you. Millennials are money-conscious and less likely to get into a significant amount of debt without the confidence they can repay it. However, it’s easy to make a misstep here. You need to factor in the cost of home insurance, for example, as well as taxes into your household budget. Rent and mortgages are often comparable, but there are still costs of upkeep to factor in as well.
Insure Based on Your Risks
When buying home insurance, remember that it provides protection for all of your risks. It should cover:
• The home’s structure itself (up to the cost to rebuild it in the best situations)
• The personal possessions you have in the home (which you may need to adjust higher if you have a large amount of electronics)
• The liability risks present, including risks of having friends over or having a pet
Your insurance company can help you determine what risks are present in your area. It is up to you, though, to make sure you have coverage that fits your lifestyle and your budget.
Most People Qualify for Some Discounts
Here’s one of the most important steps to buying an affordable home insurance policy. You probably have a few discounts available to you.
Do some research about the discounts in your area. Insurers may include discounts if you bundle your car and home insurance policies. You may also want to consider if you qualify for a discount for having a home security system. Installing certain home automation systems are also a good way to get a discount if they offer protection.
As a millennial, you know the importance of making good decisions. That is why it is important to choose a reputable home insurance company that’s willing to customize a policy to fit your needs. Be sure to provide as much information as possible to your agent before making a decision on coverage.