Three Easy Steps to Choosing Home Owners Insurance

Insurance is not easy to pull the trigger on for most people. The biggest obstacle is the perception that insurance is a waste of money and will never be needed. The money spent on premiums could be put to better use. There is also a perception that even if one needs to use their insurance, once deductibles and frequency of occurrences are taken into account, you’re coming out ahead if you pay for the job yourself.

This line of thinking is all good and fine until your basement gets flooded and the very foundation of your home is at stake. Not to mention precious valuables that can be damaged by water or fire. There’s a reason any good real estate agent will push you to buy home insurance, despite there not being anything in it for them – It’s truly a no-brainer.

This step-by-step guide will ensure you receive the right insurance for you, with the best coverage and best rate possible.

Step 1: Properly assess the value of your home and its contents
When it comes to assessing the contents of your home, it’s pretty straightforward. Make an itemized list of all your valuables and how much you paid for them (take into account if the item has appreciated or depreciated in value). Pull out your calculator and add up all the amounts into one sum.

Assessing the value of your actual house is a lot trickier. Generally, an insurance agent can give you an idea of the value, but this will be vague at best. In order to get the most accurate assessment possible, you will need to source an assessment company.

Once you have both values add them together and now you will be ready to present something accurate for potential insurers to quote on.

Step 2: Make a list of all the factors that can reduce your insurance rate
There are many different features in your home that mitigate the risk of damages or theft. It’s important to know what these are and disclose them to potential insurers for your quote. Below are some of the many factors that will reduce your insurance rate:

– Group your different policies (Such as home, auto, life, etc.) with one insurer. Grouping everything together can reduce your rates up to 30%.
– A good Home Security System
– Raise your deductible to the highest amount you are comfortable paying based on your budget.
– Dead Bolt Locks are the most effective types of locks you can install and consequently reduce your rate.
– Maintain good credit
– Be monogamous – The longer you stay with the same insurance company, the more loyalty discounts you will receive.
– Install Fire Alarms and sprinklers if you don’t already have them.
– Make your home disaster resistant

Step 3: Quotes
Once you know the exact value of your home and are able to assess all the security and disaster-proofing you have and are willing to obtain; you’re ready to get quotes. Get as many quotes as possible and ask a lot of questions.

Want to learn more about homeowners insurance? Check out this chart with homeowners insurance policies explained.

Leave a Reply

Your email address will not be published. Required fields are marked *