Buying a home is one of the greatest decisions that you make in your life, which makes buying homeowners insurance equally as important. Having a suitable insurance policy or protection plan for your phone, computer, or other personal items is essential for covering your investment, right? So why wouldn’t you make sure that you got the same out of your homeowner’s insurance?
Just in case this is the first time you have gone through this process, there are several critical things that you want to keep in mind when shopping around for a fitting insurance policy. Here are a few tips that will help you on your insurance hunting adventure.
1. Know What Your Home is Worth
Has it been some time since you have had your home inspected? No better time than the present, especially if you are purchasing homeowners insurance. Get an exact value from a home builder or a home assessment company so that you can get a better idea of how much you need to insure your home for. This will also put into perspective in the worst possible scenario, what it would cost to replace the entire house, from the foundation up.
2. Find Out Exactly How to File a Claim
In the painstaking midst of something awful happening to your home, the last thing that you want to do is get put on hold. Know exactly who you need to talk to, what information you need to file an insurance claim, and what to do in the event of a home emergency.
3. Use Simple Tactics and Tools That Can Save You Money on Insurance
One great way that you can save money on a homeowners insurance policy is to take advantage of some simple devices, that many don’t think of. Things that could potentially make your policy cheaper are:
- -Deadbolt locks
- -A home security system or alarm
- -New, working fire alarms and sprinklers
- -Safe wiring and updated electrical systems
- -Being located near a fire and/or police department
Ask your insurer about these to see if you can have money taken off of your premium.
4. Take Inventory of All of the Valuable Items in Your House
Keep an inventory of all of the valuable items in your home, such as jewelry or fine artwork, and the costs associated with those items to the best of your ability. Anything that is important to you or costly should be catalogued somewhere safe so that you have an idea of the possessions you should insure in your home.
5. Shop Around Before You Buy a Plan
Don’t buy through the first insurance company or buy the first plan you come across. Make sure you shop around before you are absolutely certain of which kind of plan is adequate for your particular needs.
6. Compare Insurance Plan Deductibles
Part of shopping around is in comparing deductibles. The deductible is the maximum out-of-pocket costs that you would pay in the event that something disastrous happens to your house or personal property. Compare prices to make sure that you aren’t overpaying and that you are financially capable of paying your deductible.
7. Note the Environmental Risks That Your Premium is Based On
Think about some of the environmental factors that would put your home at a higher risk for a claim or an unfortunate incident. This is where factors like neighborhood, crime rate, natural disasters specific to your area, and distance from freeways or congested areas would apply.
8. Understand What You Are Covered For
You would be surprised how often this one gets overlooked. Homeowners insurance policies can look like an entire novel’s worth of information, which makes it even more critical that you know exactly what is included in your policy. Ask your insurer or agent any questions that you might have on the policy, and if you need some added reassurance have an attorney review your policy.
By abiding by these simple eight precautionary tips, you will be well on your way to purchasing the most appropriate coverage for your new home!