An important step when buying a home is getting the right homeowner’s insurance policy for your needs. In fact, most lenders won’t allow you to close the deal until you secure it. You don’t want to lose your dream house because you aren’t prepared, right?
Homeowner’s insurance premiums are determined by a number of factors, many of which are under your control. Making a few smart decisions will give you the coverage you need and could save you a lot of money each year. Consider the following homeowner’s insurance tips that can help you get the right policy.
Get Enough Coverage
So, you want your home to be fully protected, right? Homeowner’s insurance is what you need, but you have to understand that there are 3 basic coverage types – dwelling, personal property and liability. Divide and consider each one of them alone. Make some calculations and be sure to have enough coverage for everything.
- Dwelling – here you have to know how much is going to cost you if your whole house goes down and you have to rebuild it from scratch. Keep in mind that there’s a difference between the costs to build it 10 years ago and today. Make sure you have the right amount.
- Personal property – this applies to all your personal stuff inside your home. You should have enough coverage to replace all your belongings. It’s a good idea to make an inventory of everything you own. Take photos of each item and keep it up to date when you buy new stuff. Make a copy of your inventory and send it to your broker. That way you won’t have to prove what you own in case of claim.
- Personal liability – this one covers you if someone else gets injured in your home and sues you. Most homeowner’s insurance policies have a minimum of $100,000 in personal liability coverage. But we recommend you to buy at least $300,000—and even $500,000 if you can.
Consider Your Deductibles
Going for a higher deductible, such as $1,000 instead of $500, can lower your monthly premiums significantly. Or you may be more comfortable paying a higher premium each month for greater peace of mind if something happens with your property.
Consider Valuable Personal Items Insurance
If you have some valuable assets that you keep in your house, keep in mind that the personal property coverage may have limits on the amount you can collect. If you have expensive jewelry, fine collectibles, electronics, securities or antiques, firearms and furs you will need to get additional coverage for those items.
Homeowners policies also vary by state as different states mandate different coverages and laws may also vary.
Customize your policy
There are certain hazards that your regular homeowner’s insurance policy doesn’t cover. However, you can add specific coverage for an additional cost. For example, flood damage is not generally covered, so if you live in a flood zone, you can purchase flood insurance.
How to get homeowner’s insurance?
For most people their home is their most valuable investment. In many cases big differences in coverage result in a very small change in premium. Due to these differences in forms and coverage it is in upmost importance to work with a professional local agent to pick the right coverage for your home.
Now you know what to look for in a homeowner’s insurance policy. The next step is to shop around for quotes. We have great insurance options and you can get free quote here. Check it out!