What do I need besides homeowners insurance for 1st time buyer?

Question

Me and my husband are in the process of building a new home in Houston,TX and I wanted to know if anybody with experience had any advise into what else we should look into besides homeowners insurance? Is that all that we need?

Answer 1

Legal Expense Insurance to help pay for your legal fees and to protect you from signing contracts you don't understand.

There's a lot going on with buying a house now its good to have an attorney on your side to help you through your life changing decisions. Prevention is key! Good luck go to this website and get the info for yourself. www.prepaidlegal.com/hub/isisdonaldson  

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Answer 2

If I were you, I'd look into two things in particular:

First is a mortgage disability policy. You would probably want to take out this policy on both you and your husband. This will help to cover mortgage payments if you or your husband are injured and unable to bring in income.

I'd also look into life insurance policies on each of you. If your husband were to pass away, would you be able to continue making mortgage payments on your own? Would you choose to move? If not, life insurance is a must.

Answer 3

Make sure you have sewer back up and standing water coverage, why because if your sewer backs up into your basement or your grading on the side of your house isn't sloped just so, you could get a wet basement.

Answer 4

I would highly advise a home warranty for at least the first year. American Home Shield offers one that is pretty good. We got our plan for like $450 for the year, and when we had to replace the hot water heater, it cost us all of $50 to have it done. We had the seller purchase the plan in our buy agreement when we got our house in November of last year.

You also HAVE TO HAVE enough life insurance per person to cover the total house loan in the case that one of you dies for some unknown reason. Life insurance is of course optional, but you don't want to be left with a ton of bills and a mortgage to pay one one income. We got $100K policies for about $21 each a month through our insurance company, and then we have another $100K through my husband's work - enough to cover our house loan.

Other than those two things, which in my mind can be total lifesavers, I can't think of anything else.

Answer 5

I wouldn't worry about a home warranty policy since they usually cover up to a year.  since this is a brand new home, you should have that anyway through the builder.  You definitely want to make sure you carry enough liability on the home policy. I suggest at least $500,000, its VERY cheap on a home policy.  Make sure you have replacement on your contents, sewer back up and schedule anything of value (ex: jewelry) onto your policy so that its covered to the full value.  I also suggest taking out a life insurance policy on you and your spouse.  this is a much better way to have the money to pay the home off if either of you passes away (god forbid) than taking out a policy through the mtg for it.  Congrads on your new home and enjoy it!