You have to have homeowners insurance. Nothing is worse than having your home and possessions damaged or destroyed. Homeowners insurance eases the pain of losing your home, so it’s important to find the right insurance for you and your family. Here’s what you need to know before you buy homeowners insurance.
- Figure out how much coverage you need. The more you pay in insurance, the less you will have to pay out of pocket if a disaster happens. In most cases, your mortgage company will require you to buy at least enough to cover the loan, but you may want to buy more insurance for valuables in your home.
- Compare deductibles. The deductible is what you will pay on each claim filed. The lower the deductible, the higher the cost of the insurance. Do your research and find the deductible that you would be ok with paying if you file a claim.
- Replacement or actual cost value. If you decide to collect replacement value of your home and possessions, be sure to insure at least 80% of the home’s value. Actual cash value is what you will claim after the depreciation of the house.
- Look before you leap. Your lender may recommend an insurance company, but you have the right to search for a company with your best interests in mind. Ask friends about their home insurance, search online, and compare rates to make sure you get the best bang for your buck.
- Check for discounts. Your insurance agent may be able to offer discounts for safety features you have added to your home, such as security systems, deadbolts, and a new roof.
- Look for insurance packages. Some insurance companies offer packages or bundles to help you save money. You can pick which type of coverage would be best for your home, such as fire and theft.
- Your policy is a legally binding contract. Be sure to read over your policy very carefully and thoroughly to make sure that there are no hidden commitments or fees. Keep your contract safe and with other important documents so you always know where to locate it should you need it.
- Review your policy every year. Your family’s needs may change from year to year, so review your policy to see what coverage your family actually needs.
Your home is important to you and your family, and your homeowners insurance needs to be, too.