Five Easy Steps for Choosing a Homeowner’s Insurance
by Arina Smith Insurance 05 March 2019
Buying a home is an exciting adventure, but it’s also incredibly nerve-wracking. One survey revealed that out of 2,000 Americans, 40% admitted that buying a new home was one of the most stressful events of their modern lives! One of the daunting parts of this process is finding the right type of homeowners insurance that’s both financially sound and right for your needs. Whether you’re going through the steps for the first time, or are looking to switch to a new insurance company, here are five easy steps you need to follow when choosing a plan that’s right for you.
Research A Homeowners Insurance Fit For You:
First, be sure that your homeowners insurance includes the six areas that are typically covered; the dwelling, a detached structure (such as a shed), personal property, living expenses in the chance your home becomes uninhabitable, personal liability against lawsuits regarding injury or property damage as well as the medical costs incurred if someone else is hurt on your property. Identify if there are additional premiums you may need to add to your coverage such as high-priced items like jewelry or art pieces. Keep in mind that these may need to be appraised.
Once you’ve confirmed what is covered within the insurance plan, educate yourself on what types of perils the insurance companies will be providing compensation for. For example, if your home is within a flood zone, you will not receive any reimbursement for this act of god. However, if your pipe breaks and it creates flooding, you will be. Ensure you know this information, as it’s pivotal!
Identify The Level Of Coverage You Need:
While you compare homeowners insurance companies, be clear on just how much it will cover, and if it includes the type of dwelling you live in. The average levels are:
- HO-2: Only covers damage that’s caused by an event listed within the policy.
- HO-3: General homeowners insurance policy that safeguards against perils except for specific acts named within the plan.
- HO-5: Premium homeowners insurance policy that protects recently erected housing structures and safeguards against perils except for specific acts named within the policy.
- HO-6: A Homeowners insurance policy for condos as well as liability and personal property.
- HO-7: Insurance that is generally the same as HO-3, but for mobile homes.
- HO-8: Premium policy for older homes. Similar to the HO-2 policy.
Research Policies That Are Right For You:
Once you know the basics of homeowners insurance, begin researching policies that are right for you. Remember, the cheapest is not always the best. Companies like Clearsurance are great for this step in the process of finding the proper insurance as it gives consumers an unbiased look at major companies like Geico or Lemonade by crowdsourcing reviews written by real people like you. They’re not just focused on price; they’re providing you with experiences others have had with insurance providers that will be responsible for some of the most essential items of your life.
Don’t Be Shy To Ask For Discounts:
If you haven’t already begun to reach out to your local insurance providers with questions you may have, now is the time. Don’t be shy to ask for discounts, especially if you are bundling with other insurance plans, or if it’s the first time you’re buying a house. While homeowners insurance is not as competitive as car insurance, it’s still possible to find a good deal!
Reduce Risks And Answer Questions Correctly:
After asking around about rebates, you may note that there are things in your home that are seen as risks. Minimize future costs by updating your home with items such as smoke detectors, water safety systems, storm shutters, and alarms. Another thing you must keep in mind is that you need to be entirely honest with your insurance provider. They are on your side, after all. So if you are looking to update your bathroom, kitchen or living room in the future – be open about that. When filling out your application, don’t look for ways to hide items that may increase your payments, it will hurt you down the road if something happens.
Sign On The Dotted Line:
Once you feel that you are confident in your choice, and you’re sure the insurance reviews and ratings reflect the homeowner’s company that is right for you – it’s time to sign! Your policy is essential, so don’t feel shy to reach out whenever it is necessary for your insurance provider. Keep your documents in a safe place that you can refer back to whenever it’s needed.