10 Tips for Choosing Homeowners Insurance
One of the largest investments you’ll make in your lifetime is buying a home. It’s always best, for this reason, to be well-equipped when navigating homeowners insurance companies. Here are ten tips you might find helpful when you are getting started.
1. Shop Around for Homeowners Insurance Coverage
You will be required to get homeowners insurance by your mortgage lender if you own a home. Therefore, you should consider getting quotes from a handful of home insurance companies when looking for a policy. You can assess their:
- Coverages
- Limits
- Deductibles
- Customer service
2. Find the Company Rating
A.M. Best is a good source of third-party ratings for almost any insurer in the United States. It assesses a company’s ability to meet its obligations to customers, like paying claims. It can help provide you with peace of mind when you’re picking homeowners insurance. Always choose a company with an A+ rating.
3. Consider the Location
You need to keep in mind that, If you are in the market for buying a home, the location can impact the home insurance. Some of the factors that can affect insurance rates are:
- Crime rate
- General building costs in the area
- The nearest fire station
- The likelihood of natural disasters
4. Take Advantage of Discounts
Most companies offer discounts on homeowners insurance for mitigating risks. You might be able to save some extra cash on your home insurance premium by installing:
- Storm shutters
- Smoke detectors
- Burglar alarms
- Water safety systems
Improving your credit score might also help you get a better rate.
5. Go Online
The best way for you to research is by searching online. Searching “homeowners insurance quotes” on any search engine can give you plenty of options to choose from.
6. Know the Costs
You are going to want to insure your house for its replacement cost, not its market value. The market value is how much a buyer will pay for the home. The replacement cost is how much is needed to repair or rebuild the entire home.
7. Compare Deductibles
You can set your homeowners insurance deductibles as you begin building your policy. The deductible is how much will be paid out of pocket on a claim. You can choose to pay a higher deductible which will lower your monthly premium. It would, however, mean that you will be paying more money before your insurance company pays out.
8. Know the Home Inside and Out
You should get a claims history report from the seller. This report will detail any previous damage to the home:
- Fires
- Flooding
- Other incidents
The report can give you a clue you to of the home’s frailties that might increase homeowners insurance rates. You should keep in mind that, typically, newer homes are in better condition than older ones. They should be cheaper to insure in most cases.
9. Answer Questions Honestly
Honesty is critical when you are getting a quote and selecting home insurance coverages. Giving your insurance company proper information will help them provide you more reliable protection. Providing them with incorrect information can lead to you getting an inaccurate quote. The insurer might even cancel your policy.
10. Know Your Coverage
Not understanding your coverage is a pretty common issue. You can always talk with your insurer and ask them questions about anything you don’t understand if you’re having trouble with it.
If you are looking for homeowners insurance, contact Affiliated Home Solutions for a list of our preferred insurers. We’d be happy to help.