When you’re a first-time homebuyer, your head is probably swimming with a number of things to remember.
Don’t forget about buying homeowners insurance.
This requires your attention and diligence because according to studies, more than two-thirds of owners are underinsured. Homeowners in Southern California were in for a rude awakening following wildfires some years ago when they found out that the average homeowner was underinsured by more than $200,000.
It would be a tragedy to only find out that you are underinsured when you file a claim. Do what’s right for you now by getting the correct policy.
If you follow the seven tips in this article, you’ll be well on your way to finding the policy that works for you.
1. Don’t Limit Your Search — Speak to As Many Insurance Companies as You Can Find
The mistake that many homebuyers make is that they don’t spend as much time shopping for an insurance policy. As a result, they often go for the first plan that they stumble across, and thus, are not able to truly find the right coverage.
Do yourself a favor and speak to no less than five different homeowners insurance companies before signing on the dotted line with a policy. This way, you will know what the market has to offer and will be able to find a great price.
There are several insurance providers out there, so the more you expand your search, the better it’ll serve you.
2. Get a Claim’s History Report From the Previous Owner
If you are going to buy a new insurance policy, you should also see what previous insurance claims have been taken out on the property. Doing this lets you make sure you don’t pay too much for the policy.
You can ask for a claims history report that will tell you everything you need to know.
These reports are an excellent tool to have when you need to weigh the variables of any insurance policy you’re seeking.
3. Look Into any Deals That You Can Find
The beauty of buying insurance today is that there are a lot of different policies available with a simple web search. As a result, you should also be able to look for a deal whenever you’re looking for a policy.
There are several policies that you can search for, so never pay too much due to simply failing to shop around.
Your lifestyle might also open you up to some discounts. For instance, having good credit or making repairs to a property can help you lower your rates. In other cases, you might be able to get a discount if you belong to certain organizations.
Consider these factors as you shop and never hesitate to ask questions.
4. Comb Through the Details to Make Sure You Are Getting Every Last Bit of Coverage That You Need
The last thing you would want is to buy insurance coverage that doesn’t give you everything that you need. If you are going to lock in a plan, be sure that it covers either the cash value of the property itself or the current cost to replace or repair the property.
There are lots of other details that you will want to keep in mind when putting together coverage.
By making sure you are protecting against things like floods, pipe bursts, personal property damage, and personal injuries people experience on your property, you can feel good knowing you’re covered.
This requires you to comb through all of the policy specifications until you are satisfied with the level of coverage that you are receiving.
5. Keep Your Location and Local Weather Conditions in Mind
You should definitely learn more about the weather conditions where you are buying a homeowner’s insurance policy.
Southern California deals with earthquakes and wildfires, while the Midwest deals with tornadoes. The southeast gets hit by hurricanes and tropical storms each year, while many northern states get heavy snowfall and ice.
Since the damage you experience is often unique to where you live, you’ll need to consider these factors when putting together an insurance policy.
Knowing and considering the weather conditions will help you put together the right policy, which will cover you from anything that you can imagine might go wrong.
6. Research the Background History of the Insurance Company
To make sure you’re getting matched up with a quality insurance provider, look no further than their background record.
In addition to asking people you know about references, you should also look into the company’s rating. The rating denotes the insurance company’s financial strength, which speaks to their ability to pay you in a timely manner (or at all) when a claim is processed.
When at all possible, do business with a home insurance provider that has an A+ rating. Your home will be better for it and you will save yourself a lot of trouble in the long run.
7. Always Have a Budget For Your Insurance Purchase
Most of all, make sure that you opt for a homeowner’s insurance policy that you have no problem paying for.
Choosing a plan that is affordable makes your life easier, and decreases the likelihood that you will default on it. Check with as many companies as possible so that you are able to get some affordable quotes.
Buying Homeowners Insurance – Follow These Guidelines
Start with these tips for buying homeowners insurance and you’ll be well protected. There are lots of companies available, so don’t hesitate to search far and wide.
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