Relax! Buying Homeowners Insurance Isn’t Nearly As Hard As You Think it Is

Relax! Buying Homeowners Insurance Isn’t Nearly As Hard As You Think it Is – There are a lot of things in life that are absolutely terrifying the first time you’re flying solo. Do you remember the first time mom and dad let go of the bike and you were on your own with your two wheels? What about the first time you got to hit the highways with that brand new driver’s license? It’s hard to know how to do the right thing every time, and the same philosophy applies to buying homeowners insurance.
Relax! Picking out a home insurance policy for your new house isn’t nearly as hard as you think.
How Much Coverage Do You Need?
One of the first questions every homeowner asks when shopping for insurance for the first time is exactly how much home insurance coverage they need. There are two things you have to remember. When you’re talking about coverage for the house itself you don’t have to worry about insuring the land, just the value of the house. That means you need to work with your home’s appraisal rather than the value of your mortgage!
The next thing you need to do is make sure you have an up to date inventory of the contents of your house for your homeowners insurance provider. The last thing you want is to try to file a claim for a $10,000 painting or a $7,000 tv that your insurance provider knows absolutely nothing about. It’s not going to get you very far. The best time to do that is when you move, since you’re going to be hauling everything around anyway, but it’s up to you!
Finally, let’s talk bodily injury and liability. When someone is injured on your property it’s your fault, even when it isn’t your fault! You want to make sure you have a minimum of $100,000 to $300,000 per incident to make sure you’re never left holding the bag for thousands of dollars in damages AFTER your homeowners insurance has paid their share.
How High Should Your Deductibles Be?
Finally, let’s talk deductibles. You’re going to have a lot of options when it comes to your deductible. The thing to remember is that the higher your deductible is the lower your annual premiums are going to be. Most experts recommend a minimum deductible of $500, but $1,000 per incident is preferable. Remember, you can probably take care of the little stuff yourself. It’s the big stuff you’re going to need to file homeowners insurance claims for. If it’s under $1,000 it’s probably not worth the paperwork.
How to Shop Around for Homeowners Insurance Quotes
The single most important thing you need to know about shopping for your homeowners insurance policy is that you need to shop around for the best deal. Check with multiple companies to find out how much they’ll charge you, what type of insurance they’re going to offer (and how much) for that price and what they’ll consider covered under your insurance policy. (If you happen to live in an area at a high risk for windstorms, flooding or earthquakes it may not be covered under your insurance policy.)
Shopping for a new homeowners insurance policy isn’t as hard as you think it is. All you have to do is shop around and it won’t be long before you find a company that’s willing to give you a great deal on your coverage a price you can afford.