Your home is probably one of your largest assets you have and choosing the best home insurance you can afford is extremely important.
Find A Good Insurer
When researching an insurance policy , the monthly premium will definitely be a consideration, make sure that the company you choose has a good reputation and that they can afford to pay your claim if disaster strikes. Reliable customer service is also important as is recommendations and reviews from existing customers.
Get the Right Coverage
Unlike auto insurance, there are no state-mandated requirements for home insurance, some mortgage lenders may only require you to insure 80 percent of the replacement value of your home. You need to have adequate cover so in the unfortunate event that you need to make a claim, you will be able to replace lost or damaged items or rebuild your home to its original state. Bear in mind that underinsuring is a common mistake as is buying too much cover.
Options, add-on and separate coverage considerations to make:
Earthquake, hail, and windstorm cover.
Depending on your state, you may have to pay a separate deductible for hail damage or buy stand-alone coverage. The same will apply for earthquakes and high-speed windstorms.
Extended replacement cost.
This will pay 10 to 50 percent above the limit of coverage if building costs soar after a major disaster.
Content replacement cost.
To avoid having to pay the difference when replacing possessions, opt for replacement cost coverage.
Additional valuables.
Home Insurance policies typically put limits on what an insurer will pay to replace valuables such as firearms and jewellery. Make sure you are covered to replace expensive items such as these.
Ordinance, or law and endorsement.
This cover will pay for the cost of rebuilding in compliance with updated local building codes. This can be important, especially when repairing or replacing an older property.
Inflation protection.
Raises your coverage to reflect annual increases in homebuilding costs.
Consider flood insurance, even in a low-risk area
Home insurance policies will cover flooding only if it’s caused by a leak or other system that breaks in your home. Protection against flooding and mud flows originating from the outside must be covered by flood insurance.
Take out cover for home and auto insurance from the same company.
Purchasing your homeowners and auto insurance coverage from the same company can often provide you with a saving.
Raise your deductible.
If you opt for a higher deductible, this will result in a lower premium.
Make home improvements.
Replacing old plumbing and adding a security system and water- or gas-leak detection sensors can provide insurance savings.
If You Need To Make A Claim
Making multiple claims in a short period will probably result in an increase in your policy or cause your insurer not to renew your policy. Avoid making claims for just a few hundred dollars above the deductible. Doing so might erase discounts you, you can discuss whether your policy will be affected if you make a claim with your insurance agent.