Choosing the Right Home Insurance

Choose the best home insurance product for you. Use this quick guide to find out how today!

When you purchase a home, you are making one of the most significant purchases of your life. You want to protect your home by purchasing homeowners’ insurance but choosing the right one can be complex. There are many factors to consider ensuring you are choosing the right insurance for you and your needs. You need to assess your living situation and your risks which can vary based on location and lifestyle. 

Homeowners insurance provides financial relief should anything happen to your home or personal belongings within your home and help pay for expenses if you are held responsible for accidents or injuries. Most homeowners’ insurances cover 

Dwelling – This aspect covers any damages to your home and any attached structures and should cover the total cost of the house.

Other Structures – This covers any standalone structures on your property, including fences or sheds.

Personal Property – Anything you own within your home is covered under this aspect of homeowners insurance in the case of theft or damage. 

Additional Living Expenses – This coverage is to help cover any temporary living expenses while your home is under repair. 

Liability – Pays for any injuries to you or anyone on your property and covers accidental or neglectful damage. 

Medical Payments – This pays for medical treatment for anyone injured on your property and covers anyone living in your home, including your pets, if they hurt someone off your property. 

Choosing the Right Insurance

Choosing the right insurance to match your home and your lifestyle can be daunting. The obvious things to consider are price, customer service and claims handling, and all your coverage options. You need to make sure you take time to review multiple insurance companies, and you can choose one that can match your budget and needs.

Understand What Type of Coverage you Will Need 

When choosing your insurance, you first need to evaluate your needs for your life. You will want to consider your location and potential for natural disasters, how the neighborhood is and if it is safe from damages or theft, and your lifestyle. You want to ensure you are not purchasing coverages that you do not need.

Assess The Total Cost of Your Personal Property

In addition to the types of coverage you need, you will want to assess your personal property and how much it would cost to replace every item if damaged or destroyed. Your coverage will not only cover your personal property, but you want to ensure if your entire home is damaged that it is covered as well. 

Compare Policies

When searching for your homeowners’ insurance, you will want to shop around and receive a few quotes to compare the coverages that fit your needs and ensure you get the best prices. You will want to evaluate each company add-ons if they have any that you may need or feel more secure having. 

Review Your Policy

Be sure you review your insurance policy before you sign and that you ask any questions you may have. Your insurance policy is a legal contract, and you want to be sure that your rights are protected, and the responsibility is clearly stated and is not easily misconstrued. 

How to Save on Costs 

Most insurance providers offer many options to help reduce the monthly cost of your homeowners’ premiums. Here are a few simple ways to cut costs and ensure you are not overpaying.

  • Raise your deductible – You may have more out-of-pocket expenses should anything happen, but your premiums will be lower monthly.

  • Secure your home – Some insurers offer discounts for added features such as security systems such as deadbolts or monitoring systems for your home.

  • Ask about discounts – Ask for any discounts that insurance companies may not advertise, such as paperless billing or automatic payments.

  • Bundles – Most insurance companies offer a discount if you bundle your homeowner’s insurance with your auto insurance. 

  • Improve your credit score – Your credit score impacts how much you pay for your homeowners’ insurance. You can work to elevate your credit score and have your credit reevaluated to lower your premiums. 

  • Appraisal after Improves to the Home – If you have done renovations to your home, you can have your home reinspected, potentially gaining more discounts on your insurance premiums.  

When to Choose Additional Coverage

Many homeowners’ insurances leave out many types of coverages for things that could go wrong with your home. Most policies exclude coverage for natural disasters such as flooding, landslides, earthquakes, tornadoes, and sinkholes. They also leave coverage for neglect, normal wear and tear, government damage, infestations, and mold. You may be able to purchase solutions or packages as add-ons, and you may consider taking them up on this for various reasons. Some endorsements are not covered under standard homeowners’ insurances. If you have concerns about damages or situations your standard insurance package offers, as about adding an endorsement to provide you with additional coverage. These are the situations you may have to consider adding extra coverage. 

  • Natural Disasters – You can purchase separate coverages that may be worth investing in if your home state is prone to natural disasters. 

  • Scheduled Personal Property – This goes beyond the standard personal property coverage and is specific to one item, and usually requires an appraisal. 

  • Service Line Protection – Line protection pays for any lines, such as electrical lines or anything regarding utilities that you are responsible for.

  • Ordinance or Law Coverage – If your home requires repairs or updates to bring your home up to code, this covers any costs associated with updates.

  • Identity Fraud Coverage – This pays for any losses for identity theft, including legal fees and lost wages. 

  • Water Backup Coverage – If you live on land with a sump pump, sewer line, or drains, you may want to consider water backup coverage to cover your property if any of these become backed up.

  • Equipment Breakdown Coverage – This coverage can cover large, expensive appliances such as HVAC systems if they break down for any reason outside of normal wear and tear.