Protecting the investment you have made in your home should be a major concern for you. Luckily, homeowner's insurance is a convenient way of accomplishing this goal. However, if you are a first-time homeowner, you probably do not have much experience buying these policies. This may make this seem like a confusing process, but learning the answers to a couple of common questions should help you better understand this type of essential protection. 

Is A Quote Binding?

One of the first steps in purchasing an insurance policy is to obtain a quote, and while this is a routine task, some people do not fully understand the function a quote serves. A quote is designed to quickly give you a price estimate for the policy that you are wanting. Before an insurance company can provide you with a formal offer, they will likely need some time to run background checks on you, and this delay can make it difficult for people to comparison shop. Fortunately, a quote bypasses this problem by relying on the customer to accurately complete the quote form. 

Due to the fact that the information to get the quote is self-reported, these are usually not binding price offers. Rather, they are estimates of what you will most likely be paying for that particular policy. As a result, you should not be surprised if the actual price of your policy turns out to be a little higher or lower than your quotes price. 

Is Damage To Your Yard Covered By These Policies?

Some homeowners are under the impression that these policies will cover any damages that occur to their property. However, most of these policies will only cover damages that occur to your home or your possessions inside the home. Also, these policies will usually not cover some types of damage, such as flood and earthquake. 

Due to these limitations, you will need to carefully review these factors for any policy you are considering getting. You will need to purchase additional plans for any threats that are not covered, and factoring the costs of these additional plans into your comparisons will make it easier for you to choose the most economical option. 

A homeowner's insurance policy from a firm like Colling Insurance Services, Inc is one of the best options for ensuring that you are protected from various risks that can damage or destroy your home. Yet, you may not be familiar with these policies if you have only recently purchased your first home. By understanding that your quote does not guarantee a final price and the limits on the types of damages covered by these policies, you can make smarter choices when you are choosing a policy for your new house.