8 Homeowners Insurance Tips

Before you shop for homeowners insurance, it’s wise to be informed about the wide range of costs and the ins and outs of insuring your home. Learning as much as possible about the following points will help you select the best homeowners insurance to meet your needs.

Be aware that how much you know about each area will influence your choices regarding your homeowners insurance policy.

1. Home type. Your homeowners insurance policy should reflect the type of home you have. Homeowners insurances vary, depending on whether you live in a mobile home, a condominium, or a house.
2. Typical insurance coverage. A primary homeowners insurance policy will cover damage to your home from weather events, except for earthquake and flood coverage, which must be attained on separate policies.

• Also, damage from vandals and thieves will be covered. So, personal property inside your home is included in a basic policy.
• Homeowners insurance usually includes other “structures” built on your property, such as garages, tool sheds, or workshops.
• Another important inclusion in a typical policy is personal liability. This insurance coverage protects you if someone gets hurt on your property.

3. Home construction. What is your home made of? Is it built sturdily to handle weather events?

• Materials used in your home construction will partially determine the type of insurance you obtain and the cost.
• The superior the construction, the easier it will be for you to find a good policy.

4. Quality home care. You might attain a reduced premium if you go the extra mile to protect your home and belongings.

• For example, if you live in a hurricane zone and install hurricane shutters on all your doors and windows, you might score a reduced rate on your primary insurance policy.

5. Deductible levels. As with other types of insurance, you can save money on your homeowners insurance policy if you’re willing to have higher deductible amounts.

• Be aware that your mortgage company might have specific requirements or limits on how high of a deductible you can have.

6. Replacement cost coverage. Before you go shopping for insurance, it’s wise to know the value of the property you’re insuring plus an approximate value of your items inside the dwelling that you’ll be insuring. Knowing these values will help the agent decide how much to insure your property.

• To figure replacement costs, insurance companies will write a policy that covers 125% to 200% of the price of your property.

7. Cost of Insurance. Many factors figure into the cost of your homeowner’s insurance policy. Some of those factors are the age of the dwelling, the size of your home, its location, and the construction materials.

• Also, the level of your deductibles and location relative to your fire protection services and a fire hydrant figure into the final insurance costs.

8. Insurance company’s reputation. As with any business you deal with, know your insurance company’s reputation. Verify they are licensed to sell insurance in your state.

• Check the company’s ratings through Standard & Poor’s, TheStreet.com, and your local Better Business Bureau.

Obtaining homeowners insurance requires you to do your homework. Use this list to prepare yourself for doing some comparison shopping for your home’s insurance. Once you familiarize yourself with all the facts about your dwelling, you’ll be prepared and ready to make your best deal on your homeowners insurance policy.