Do your homework before getting homeowners’ insurance.
Use this list and consult your independent insurance agent so they can do some comparison shopping for your home insurance. After you look over all the facts related to your dwelling, you and your agent will be prepared and ready to get the best deal on your homeowners’ insurance policy.
How much you know about each of the following subjects will influence your choices when buying your homeowners’ insurance policy.
1. Home type.
Your homeowners’ insurance policy depends on the type of home you have. Homeowners’ insurance can vary. It depends on whether you live in a single-family house, mobile home, or a condominium.
2. Home construction.
What material is your home made of? Is it built to handle certain weather conditions? The materials of which your home is constructed will partly determine the type of insurance you can or should get, as well as the cost. The better the construction, the easier it’ll be to find a good policy.
3. Deductible levels.
Just like other types of insurance, you can save money on your homeowners’ insurance policy if you’re comfortable with having higher deductible amounts. Keep in mind though, your mortgage company might have specific requirements or limits for your deductible.
4. Replacement cost coverage.
Before starting to shop for insurance, it’s a smart idea to know the value of the property you’re insuring. And, you should know the approximate value of your personal items inside the dwelling that you’ll be insuring. Knowing item values can help your agent know how much to insure your property for. When calculating replacement costs, insurance companies usually write a policy that covers 125% to 200% of the price of your property.
5. Cost of Insurance.
Myriad considerations factor in when deciding the cost of your homeowner’s insurance policy. Some of those considerations: age of the dwelling, size of your home, location, and construction materials. Keep in mind, the amount of your deductibles and the location in relation to fire protection services and a fire hydrant figure into the final insurance costs.
6. Typical insurance coverage.
A basic homeowners’ insurance policy covers damage to your home from weather, except for earthquake and flood coverage. Usually, those must be placed on separate policies. On your basic home policy, damage from vandals and thieves will be covered. So, some personal property inside your home is included in a basic policy. If you have expensive jewelry, furs, etc., then you may need to cover those items specifically. Other “structures” that are built on your property, such as garages, tool sheds, or workshops are usually included in homeowners’ insurance. Another important included piece of a typical policy is personal liability. This type of liability insurance coverage protects you in the event that someone gets hurt on your property.
7. Quality home care.
If you make extra efforts to protect your home and belongings, you could attain a reduced premium. For instance, if you live in a hurricane zone and you install hurricane shutters on all your doors and windows, you could get yourself a reduced rate on your basic home insurance policy.
8. The insurance company’s reputation.
Like any business you deal with, consider the insurance company’s reputation. For starters, check that they are licensed to sell insurance in your state. You can also check the company’s reputation through TheStreet.com, Standard & Poor’s, and the local Better Business Bureau.
Conclusion
There are a wide range of costs and considerations when insuring your home. So, when you shop for homeowners’ insurance, it’s smart to be informed ahead of time. Learn as much as you can about the above pointers. Knowing your facts, and consulting with an independent insurance agent like Hettler Insurance Agency in Lubbock, Texas, will help you to select the best homeowners’ insurance for your needs.
