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Look For These 4 Things When Shopping For Homeowners Insurance

form for home insurance on a clip board

Homeowner’s insurance protects your home, personal items, and family. It is a valuable investment that can help you sleep better at night knowing that if the worst should happen, you are protected. Unfortunately for many homeowners, they might not be getting the best deal on their policy. Here are four things to look for when shopping for homeowner’s insurance:

  1. Cost
  2. The insurance cost is one of the first things shoppers look for. The cost of insurance can vary with each provider and the scope of the coverage. Because of the variable insurance costs in the market today, you may get to ask, “do you need homeowners insurance before closing on a house?” especially when mortgage financing is involved. Some homeowners make the mistake of letting the insurance costs deter them from getting one. Home insurance is designed to protect both you and the lender, and it is a requirement that can cause your home loan to get declined if you skip or delay purchasing it.
  3. Do an online quote comparison before calling any provider to make sure you aren’t missing out on a lower price elsewhere. Make sure that you compare prices from a variety of different companies before deciding on one. It is easy to get confused when looking at all of the options available to you, but do not let this deter you from completing your task.
  1. Coverage
  2. Homeowner’s insurance covers personal belongings that are stolen or destroyed. However, if you want to be absolutely sure that your personal belongings are safe and fully covered, make sure the total value of the items is included in your policy limits. Whether it’s thousands of dollars worth of jewelry or just enough to purchase a new computer if yours were stolen, these things should be insured. Otherwise, any losses could significantly deplete your savings account!
  3. Make sure that your coverage matches the condition of your house and personal items, even if you have to upgrade. Most insurance companies offer replacement cost policies which means they will pay what it takes for you to replace something rather than just the current market value. Also, make sure you add riders (also known as endorsements) such as guaranteed replacement cost or upgraded contents coverage if needed.
  1. Fine Print
  2. Even though there are federal standards for homeowner’s insurance policies, every company has its own set of rules and limitations. It can be very confusing keeping track of all the fine prints and loopholes each company considers a “standard” condition. Make sure you understand the benefits you are covered for as well as any exclusions, limitations, and conditions.
  1. Customer Service
  2. It’s always nice to have a company that is easy to work with. You never know when something will go wrong or when you might need additional coverage. Don’t be afraid to ask about the insurance company's procedures and whether they offer 24/7 service and claim handling.

3 people with a laptop filling out a home insurance form

These are four of the most important things that you should look at when shopping for your homeowner’s insurance. After reading through this article, consider looking into these factors before purchasing your policy to ensure that you get the best deal possible.