First time homeowner? Don’t know what to look for when buying home insurance? You’ll want to check out these four things.
Buying your first home is a huge step, but finding the right insurance coverage is equally as important.
You’ve probably saved for a number of years to make the investment on your first home- the last thing you need is to lose it all without adequate insurance.
Here are four important factors to consider when buying home insurance to protect your greatest investment yet!
Factors to Consider When Buying Home Insurance
Once the dust has settled on your new investment, it’s time to focus your attention on the ins and outs of insurance coverage.
And yes, choosing the right home insurance policy can seem overwhelming at first. So to help you out before signing on the dotted line, here’s what to look for in homeowners insurance…
1.Understand the True Value of Your Home
By taking the time to look around and take stock of what you actually own, this will help you determine the best amount of coverage for your insurance.
Under-insuring your home and its contents is almost as bad having no insurance at all.
Depending on how much you own and the size of your home, insurance premiums will vary. So it’s important to do a thorough stocktake of exactly what you own and what its worth before signing an insurance policy.
By understanding the full value of your belongings and your home, you’ll be able to set the limit for your contents insurance just above what it needs to be. This will help if you ever need to fully replace damaged or stolen belongings.
2.Enquire About Discounts and Deductibles
What is an insurance deductible? Basically, this is the amount you’ll have to fork out on a claim before your insurance coverage takes effect and covers the rest.
This deductible applies only to the amount of coverage you have on your home and personal items within it.
So how do you get around this deductible amount? Well, the better your insurance policy is, the less you’ll have to cover in the form of a deductible.
Additionally, be sure to inquire about any possible discounts you qualify for on your insurance premium. Added home security features are a great way to cut down on premiums and qualify for discounts.
3.Take Time to Review All Policy Clauses
Make sure you take time to read through your insurance policy thoroughly, taking stock of all its clauses and what they mean.
A home insurance policy and its clauses are not always set in stone and can be tailored to your needs.
One such clause is liability coverage which is often overlooked by new homeowners. This covers you in the event of tragedy or accident that you are liable for i.e. crashing into your neighbor’s wall.
Take to the time to assess whether you’re happy with the liability coverage in your contract. If not, this can be altered to your liking!
4.Compare Insurance Quotes
Remember that you are under no obligation to purchase home insurance from any particular company.
You have free reign to compare insurance quotes and the clauses within each policy offered to you.
Make sure to do some homework and compare the insurance policies of at least three different companies. Look at coverage, price and customer reviews of their service. Shop for value and not the lowest price – this doesn’t always guarantee the coverage you need!
Deck Out Your New Home
Whether you’re buying home insurance or looking for decorating tips, Residence Style is your go-to for everything to do with new or older homes.
Check out this blog on how to create a perfectly smart home, geared for 2019.
