Homeowners insurance can be one of the most important investments you make in protecting your home and family. From natural disasters to theft, homeowners’ insurance can help cover a variety of potential risks associated with owning a home. However, with so many policy options available today, how do you know which policy is right for you? In this guide, we’ll break down some factors you should consider when selecting a homeowners insurance policy.
Determine Your Coverage Needs - Not all policies are created equal, and not all policies are appropriate for every homeowner. You’ll want to assess your coverage needs as there is no one size fits all policy. Consider what your risks are, what your property is worth, and what lifestyle you lead. Take an inventory of your belongings and the value of your house, and use that to ensure that you select a policy that will provide you with enough coverage.
Compare Deductibles and Premiums - A deductible is the amount you pay out-of-pocket before your insurance kicks in. Choosing a higher deductible will lower your monthly premium but means you’ll pay more upfront in the event of a claim. Conversely, opting for a lower deductible means paying a higher premium but less out-of-pocket after a covered event. We recommend choosing a deductible you can comfortably afford if an unexpected event occurs.
Understand Your Policy’s Exclusions - It is essential to know what your policy covers and what it doesn't. Homeowners insurance typically covers damage caused by covered perils, such as fire, theft, and vandalism. However, certain disasters, like floods and earthquakes, usually require a separate policy. Be sure to read the fine print and ask your agent about any exclusions to avoid unpleasant surprises.
Seek Out available discounts – There are often discounts available to homeowners for a variety of reasons, some of which include having burglar or fire alarm, or for having multiple policies with the same provider. Bundling your homeowners with your auto can be a great way to save money and time. Be sure to discuss this option with your agent.
Research the Insurance Company - Once you’ve decided on a policy, conduct thorough research on the insurance company behind it. Look for trends in customer feedback and their reputable standing. You don’t want to sign your name to a policy with a company that won’t be able to respond when it is time to file a claim.
Finding the right homeowners insurance policy can be a daunting task. But, taking the time to research and compare different policies will help you find the right coverage for your home. Remember to ask plenty of questions so you can make an informed decision and feel confident in your purchase. Ultimately, having the right homeowner’s policy is beneficial for you as it protects you against many potential threats that could happen to your property. So don’t skimp on homeowners’ coverage - take a little extra effort to make sure you have all the protection needed against disasters of all shapes and sizes.