Your Guide to Homeowners Insurance

Depending on the company, you can find yourself paying very different prices for your homeowner’s policy. This can make finding the right policy daunting, as it’s already a seemingly complicated process and finding the policy that will provide coverage in case of an issue is extremely important. Here are a few tips we recommend to get started correctly:

• Shop around – learn what your options are and be picky.
• Raise your deductibles if needed
• Buy home and auto policies from the same company
• Check a home’s insurance cost prior to purchase
• Don’t insure your land
• Increase your level of home security
• Stop smoking! It’ll help lower risk
• Check your policy minimally once a year
  

Around how much should I buy?

Minimally, we recommend that you insure for 100% of rebuilding costs, that you look into flood insurance (especially true if you’re in a flood zone!) and that you ensure that your policy covers replacement costs in case of structural damage or the like. When these things are covered, you can add additional coverage as needed while still knowing that the basics are covered. Always make sure to keep your agent updated on any improvements, adjustments, or additions to your home to ensure that you’re appropriately covered.

Your policy has limits. Know them.

There are limits to Homeowner’s policies, and it’s important that you’re aware of these limitations PRIOR to anything happening so that you’re never caught off guard. You can normally find the limitations in Section 1, Personal Property, Special Limits of Liability. If you have expensive items such as artwork, family heirlooms, furs, jewelry, etc., make sure that they are also covered in case of something happening.

Tip: Don’t solely consider the price. In addition to getting covered, getting excellents service is a key factor in being covered as well. Even if you’re paying a little more, peace of mind and comprehensive coverage in the case of a disaster can be truly priceless.

If I have home security, can I reduce my insurance costs?

Insurance companies can offer some significant discounts for individuals who take part in their home security. For items like deadbolts, alarm systems, and smoke detectors, you can usually find a discount of about 5%. For more intensive home security, you can cut your premium by 15-20% in some cases. These are great ways to lower costs while reducing risk.