5 Tips for Finding Homeowner’s Insurance
There are many factors that can affect Homeowner’s Insurance costs. The most notable factors to consider are the location, the age of the home, and the style/method of construction. Homes that are safe from both natural disasters and crimes are the most affordable to insure. However, unless moving is an option, choosing a perfect location can be difficult to control. Regardless of where you live, using the 5 tips below can help you save when purchasing a Homeowner’s Insurance policy.
1. Compare Homeowner’s Insurance Options
Similar to typical shopping, when searching for homeowners insurance a buyer will want to compare the most affordable policies from different insurers. Using an independent agent is a good move because an independent agent will represent your interests when obtaining quotes for homeowners insurance policies from multiple providers. This saves you time because you can get multiple quotes at once instead of contacting each provider independently. Remember, just because a friend of family member got the best rate on home insurance for their specific situation from one company, does not mean that the same company will be the most affordable for you. All homeowners policies are based on unique circumstances and therefore underwritten independently.
2. Review Your Coverage
Be sure to review what coverages are in your policy as well as the policy type. Sometimes “affordable” can mean less coverage, which could result in falling short of the legal requirements for your mortgage.
An Ho-1 policy, for example, would only cover the home against the 10 listed perils (fire or lightning, smoke, ect) but would not provide homeowner liability coverage. Homeowners liability insurance is what protects the homeowner should an accident occur which results in legal action. Homeowners liability coverage is a requirement for most mortgages.
3. Use Safety Features
Having common safety features like deadbolts, smoke alarms, carbon monoxide detectors, and fire extinguishers can earn you discounts on your homeowners insurance. Security systems may save you even more money based on your home security provider.
In the event your dwelling is in a disaster-prone location, research to see if you can make any precautionary improvements for safety. Installing storm shades, storm-proof doors, storm resistant roofing, and shatter-proof windows can reduce coverage expense.
4. Ask Around Town
If you find searching for an affordable policy from a homeowner insurance provider in a high-risk area difficult, ask yourself this: “Who would have a risk profile that would be similar to mine?” Your neighbors, that’s who! Don’t be shy, ask your neighbors for a homeowners insurance recommendation, the may be able to steer you in the right direction.
5. Find Adequate Coverage But Avoid Over-Insuring
It is important to remember that the market value of your home includes the price of the home AND the market value of the property on which it is located. This distinction is essential because a homeowners insurance policy should only cover the cost of replacing the home itself. A typical homeowners policy does NOT need to insure the land the home was built on. Avoid overpaying by choosing a homeowners insurance policy that will cover the “replacement cost” of your home, instead of its full market value.