The day has finally arrived. You have the keys and are a proud new homeowner. The most important purchase you need to make after buying your house is to purchase home insurance to protect your home and property. Every homeowner needs protection against accidents that injure other people or damages your property. For most new homeowners, this can be a very confusing task. To make it easier for you to purchase your homeowners' insurance with confidence, we have listed eight tips to make sure you make an educated decision when you choose your insurance.
- Determine The Amount Of Coverage:
The better coverage you have the less it will cost you if a disaster occurs. Depending on the mortgage company you choose they may require you to purchase the amount of the mortgage as a minimum. Also, keep in mind you need to include the contents of the house and personal property such as jewelry, firearms, and antiques.
- Compare Different Deductibles:
Just like auto insurance, your deductible is the money you have to pay out of pocket when you file a claim. The lower the deductible you choose the higher the cost of your policy. It is always a good idea to go with a deductible you can easily afford.
- Weigh Replacement Cost Versus Actual Cash Value:
This can be really confusing. Replacement cost is how much it will cost to replace, rebuild, or repair the damage with the same materials without deduction for depreciation. Actual cash value is what it will take to replace or repair damages to your home after depreciation. The rule of thumb is to ensure your home for a minimum of 80 percent of the amount it would take to replace it.
- Understand The Types of Coverages:
When you go to purchase your homeowners' insurance there are different options. Each option protects you and your home differently. For example options such as fire, theft, flooding. Most policies contain four types of coverage:
- Property damage
- Medical coverage
- Personal liability
- Living expenses
- Shop Around Before You Buy:
Many mortgage companies or lenders will make recommendations, but you are not required to purchase from that company. There are many sources available to find out different insurance companies charge for the same services. It is advisable to speak with at least three companies.
- Ask About Discounts:
Once you have chosen a reputable company and agent, ask them about any discounts. For example, many companies will provide discounts if you have a security system installed, replacing the roof, or even installing deadbolts or video doorbells. They may also provide discounts if you bundle your different policies into one.
- Read The Fine Print On Your Policy:
A home insurance policy is a legal contract. Both your rights and the rights of the insurance company are stated clearly on the policy. Make sure you read and understand your policy and keep it in a safe place.
- Review Your Policy Annually:
Check with your agent a minimum of once a year or after any major repairs such as replacing the roof, remodeling, new insulation, etc. to make sure your policy continues to provide adequate coverage. Any positive improvements you make to your home that adds value will increase the replacement cost.
Your home is a big investment, in fact, it will be the biggest investment of your life. In business since 1973, Panorama can be your “one-stop-shop” for homeowners' insurance. As independent agents, we can save you the footwork of shopping around for the best rate. Representing multiple carriers, we can find you the best insurance that you require at a price you can afford.