About 95% of all homeowners have homeowner’s insurance. If you’ve ever dreamed of owning your own home or are in the market to buy, it’s important that you don’t forget to factor in the value of insurance. Homeowners insurance is the only thing that protects you financially when something unexpected damages your home, whether that be a natural disaster or in-home accident.
If you’re looking at buying a home, then read on to learn the 5 factors you need to keep in mind when picking homeowner’s insurance.
Table of Contents
1. Damage Estimates From Insurers
Different homeowner’s insurance providers calculate damage estimates differently. This is important because it affects how much money you get back when something happens to your home. The whole point of insurance is that you’re covered when something goes wrong, so you want to make sure that your insurer will cover you.
Look through reviews and make sure you don’t choose an insurer notorious for giving low estimates. Otherwise, you might end up with too small of a settlement.
2. Compare Rates
Deciding on insurance isn’t just about how much you get back, but also how much you give. General living expenses can already be expensive without the cost of insurance tacking on. Naturally, you want to keep your insurance payments as low as you can.
The best way to go about doing that is to compare rates across insurers and see who offers lower payments. Be sure to compare quotes in your area, and keep the estimates in mind when making your comparisons as well.
3. How Much Coverage You Need
When buying homeowner’s insurance, you have more options for coverage than you may realize. The goal is to buy as much coverage as you need. While paying for more than you need is a waste of money, paying for too little coverage to save money can end up hurting you in the long run if you cant get the settlement you need.
A good rule to follow is to get enough coverage to pay for the materials and labor it would take to rebuild your home.
4. Threats Where You Live
Another important factor to consider when buying coverage is the types of threats where you live. This will affect the kind of coverage you need. For example, a homeowners insurance policy in Florida should cover hurricane damage, while wildfires may be a greater risk in California.
Your immediate location and property should be considered too. If you’re surrounded by trees, for example, you may be at higher risk from a tree or branch falling on your home.
5. Options to Lower Your Premium
The best thing you can do for yourself when buying any type of insurance is to look into options for lowering your premium payment. These may change depending on the insurer.
Common ways to lower your home insurance premiums are to bundle it with your auto insurance policy or invest in home improvements and security systems that make your home safer.
Picking Homeowner’s Insurance: The Right One for You
Picking homeowner’s insurance can be intimidating, but as long as you remember these 5 factors, you’ll find the right policy that meets your needs without breaking the bank. If you found this article helpful, check out our insurance blog for more related advice.