Buying a home is one of the largest investments you’ll make in your lifetime, both financially and emotionally. That’s why it’s always good to be well-equipped when navigating the weltering sea of homeowners insurance companies. Here are some helpful tips to get you started on the right foot.
Shop Around for Coverage
If you own a home, your mortgage lender will likely require you to get homeowners insurance. To find a policy, consider getting quotes from a handful of home insurance companies, and assess their coverages, limits, and deductibles. Make sure you aren’t sacrificing protection for bare-minimum price either. And since you’re probably going to be communicating with your insurer during stressful moments, consider picking a company that is known for quality customer service and 24/7 support.
Take Advantage of Discounts
Most companies offer homeowners insurance discounts for behaviour that mitigates risks, so take advantage of them. From storm shutter installation and smoke detectors to burglar alarms and water safety systems, you may be able to save some extra cash on your home insurance premium. Some homeowners insurance companies even offer discounts for simply being a new home buyer. Also, improving your credit score could increase your chances of gett
Know the Costs
Remember, you’re going to want your house insured for its replacement cost, not its market value. While the market value denotes the amount a buyer pays for the home, the replacement cost concerns the expenses needed to repair or rebuild the entire home. Keep in mind the costs that may be required to transport the materials to the site, as well as other factors like inflation.
As you start to build your policy, you can finally set your homeowners insurance deductibles. The deductible is how much you’d pay out of pocket on a claim. For instance, choosing a higher deductible could help you lower your monthly premium — but it would mean more money coming out your wallet before your insurance company pays out. On the flipside, a lower deductible means you’d pay less out of pocket after a claim — but your homeowners rates may be higher each month.
Know the History of Your Home
If you have recently bought a home, make sure to get a claims history report from the seller. This report details any previous damage to the home, such as fires, flooding, and other incidents. It can clue you in on any of the home’s frailties that could increase homeowners insurance rates — or, worse, make it difficult to even get insurance.
Answer Questions Honestly
When getting your quote and selecting home insurance coverages, honesty is critical. Getting the proper information helps your insurance company provide more reliable protection. If you plan on upgrading your kitchen, the value of the home is likely to increase, and your coverage needs to reflect that for your protection. Likewise, if you plan on having a home office, you want to make sure you have the proper liability coverage just in case a client slips on that slippy floor. Not only could providing incorrect information lead to an inaccurate quote, but the insurer may end up cancelling your policy.
Start Your Research Online
The most effective way to commence your research is by venturing on the interweb. Simply starting with our related searches guaranteed to illuminate your screen with several useful information and options. In addition, there are some insurance companies born and raised online and that offer and convenient and affordable way to buy and manage your policy.