There's a lot that you need to know when buying homeowners insurance, but don't let it overwhelm you. Once you learn the basics, you'll find great policies that meet your needs, no matter where you live in the future.
Here are some simple "do's and don'ts" to help you get started.
Dos
DO investigate policy options. Home insurance policies can be customized to meet your needs and budget. Make sure you have enough coverage for the liability concerns of your home, property and possessions.
DO check for special rates. Ask if you qualify for special rates or discounts. These can come about if you have no prior claims, can boast excellent credit, own several security devices or make minor home improvements. All of these actions or attributes could reduce the risk of making a claim in the future — which is why insurers often incentivize them with discounts.
DO update your home's value annually. Imagine this scenario: You buy a solid house that needs some TLC. Over the first few years of homeownership, you invest some money and lots of equity to improve its value. Your $90,000 is now worth $150,000. But it's still insured for just $90,000. One day, a thunderstorm causes a fire that consumes your home. Since the home is still insured for $90,000, your insurer will only provide that amount of coverage. Avoid this issue by updating your home’s value on the anniversary of your move-in date.
DO know your claim timeframe limits. While you will hopefully never need to make a claim, you should read and understand the fine print regarding timeframe limits. That way any claims your file won’t be denied because they were deemed to be filed too late.
Don’ts
DON’T automatically bundle your home insurance with other policies for the sake of convenience. It's true that doing this can be cheaper, but that’s not always the case. Do your due diligence and search around to ensure that bundling is your best option. If you find it’s best to bundle, then do so.
DON’T pay extra to insure your land. Your land isn't going anywhere, so there's no use paying extra to insure it. However, if you use your land for business, such as farming, insurance is necessary.
DON’T forget to include your valuable items that exceed basic policy limits. If you have expensive items that are worth more than what's typically covered, be sure to get a rider that will cover them. It wouldn't take much for a thief to steal your jewelry collection or for a fire to destroy your art collection. Also be sure to update their value on your policy.
We've got you covered. Call Cowey Insurance Group for a free home insurance quote.