Home Insurance Tips for Recently Engaged Couple or Newlyweds

The holiday season, stretching from Thanksgiving to Valentines Day is when roughly 39 percent of all engagements take place.

If you are thinking about asking your sweetheart to marry you or have recently tied the knot, you are not alone. The holiday season, stretching from Thanksgiving to Valentines Day is when roughly 39 percent of all engagements take place. While your days will soon be filled with seating charts and cake tasting don’t forget to sit down and discuss your current and future insurance situation.

Living situations usually change when an engagement or marriage takes place. Couples may be looking to rent or buy a new house that is more comfortable for two people and large enough for a future family.

Here are a few tips on how to make the transition to married life nice and smooth…insurance wise.

Have an Honest Talk

Up until now you have probably both kept separate insurance policies but that is going to change and like it or not, insurance rates are affected by your credit rating. Have an honest discussion with your partner about your credit ratings to ensure there are no big surprises when it comes time to start shopping for an insurance policy

House Hunting

Homeowners insurance can be a significant expense and the cost of insuring an older fixer upper will usually be more than a brand spanking new house so consider the cost of homeowners insurance when shopping for your future home. Construction type, distance to a fire station and the state of the electrical and plumbing systems will all have a bearing on your premium. It goes without saying that the bigger the house, the bigger the insurance cost.

Location

The location of your future home is another factor that will have a bearing on your insurance premiums. It not only affects homeowners insurance but car insurance as well. Most realtors advise buying into the best neighborhood you can afford and that holds true for homeowners insurance. Low crime neighborhoods get a break on premiums.

Do an Inventory

In the event of a devastating loss, a complete inventory of your personal belongings will ensure that get paid fairly for everything you own. As you combine your households this is a perfect time to put together an inventory. While a home inventory can be done with a pad and pencil, there are numerous apps available that make the process quick and easy.

Be aware of Coverage Limits

Almost all homeowners policies have limits on certain types of belongings and jewelry is one of them. If you spent a fortune on that engagement ring, make sure you have enough coverage to replace it if it is lost, stolen or destroyed. Coverage limits also apply to art, investments and collectibles. If necessary you can purchase higher coverage levels for your valuables.

Bundle Up

There is a good chance that the two of you were using different insurers before the engagement or marriage, now is the time to consolidate those policies. Putting all of your insurance policies, homeowners, car and life with one insurer will result in a significant discount.

Shop Around

The best way to get a great rate on all of your insurance needs is to shop around. Get quotes from at least 10 insurers and make sure you are comparing apples to apples when it comes to coverage levels and deductibles. Carrying a higher deductible is a great way to lower your premiums but make sure you have enough savings to cover the deductible if you need to make a claim.

Flood Insurance

A standard homeowners policy does not cover flood damage and flood insurance can be quite expensive. If you live in a flood zone the bank that holds your mortgage will require flood insurance. Check flood maps before putting an offer in on a house and be sure to get a quote for flood insurance so you can factor in the additional cost.