Homeowner’s insurance is a necessity for anyone who has purchased their own home. It not only significantly helps lesson financial burden during a weather emergency or an unexpected occurrence that may cause damage to your home, but it also may be required by your lender for certain types of home loans. So what kind of home insurance should you purchase and how do you find the right type for you? Let’s take a closer look.
Shop Around
There are so many different insurance companies out there competing for your business. Never settle for the first offer you come across. Compare different rates and plans and always check online reviews. Although everyone has different experiences depending on their situation, if a company has a large number of negative reviews on their customer service, for example, you might want to keep that in mind when making your final decision.
Location
Make sure you know everything about the location of your house. Are you in a floodplain? What is the crime level? What is the average home price in your neighborhood? All these facts can alter the price of your insurance and determine the type of coverage you need.
Know Your Discounts
Most home insurance companies offer discounts for several different things like smoke detectors, alarm systems and even being a first-time homebuyer. These discounts may not be offered to you if you don’t ask, so be sure to be vocal with your agent when getting information.
Compare Deductibles
A company offering complete coverage for something may sound good until you realize you have a $2,000 deductible. You may have a lower monthly premium, but if something happens and you need to use your coverage, will you be able to afford the deductible? These are things you need to consider when choosing a plan.
Choosing your homeowner’s insurance is an important step in buying a new home. Make sure you’ve explored all your options and done all your research before making a choice.