With the surge in houses being purchased, there’s also a huge surge in shopping for homeowners insurance.
Between mortgage payments, property care and maintenance, and countless other bills, homeowners are faced with a lot of responsibility. In addition to all of that, a necessary part of owning a house is homeowners insurance. While some states do not legally require homeowners to obtain insurance, most lenders won’t give out a loan without it.
Homeowners insurance provides coverage for your house’s structure and personal belongings in the event of disaster, accident, or loss. This insurance can also provide liability coverage that protects you, family members, and pets if someone becomes injured or harmed on your property or in events where you are deemed responsible for damage or injury through negligence. If your house is damaged by a covered event, your insurance provider will help you restore or replace your house.
Because homeowners insurance can play such an important role in the event of an accident, disaster, or loss, it’s important to shop wisely. You don’t want to purchase a policy flippantly without doing due diligence and proper research. That’s why, today, we’re filling you in on a few tips from the pros about shopping for homeowners insurance.
Continue reading to learn more below.
8 Tips for Buying Homeowners Insurance
1. Always Get a Homeowners Insurance Estimate
Before you commit to anything, it’s always wise to get a homeowners insurance estimate, so you know what you’re committing to.
2. Understand Your Policy
Before buying insurance, it is crucial that you thoroughly understand your policy. You need to have a good idea of what is covered and what isn’t covered. For example, the majority of policies do not include certain events like floods and other types of weather-related events. Hurricane and windstorm coverage might be included in your policy, either.
It’s incredibly important that you do not underestimate the risks where you live. Do you live on or near a fault line or in an area with seismic activity? Are you in a flooding zone? If you are, going without these types of home insurance can be very costly and, depending on your financial situation, devastating. It’s best not to gamble when it comes to your home, and be prepared for potential.
So learn which events are covered by your policy. Most standard home insurance policies provide coverage for events involving damage from smoke, fire, vandalism, or theft. Your policy may also cover damage caused by weather, such as wind, lightning, or hail. Keep in mind that one policy is different from the next, and what is covered by one policy may not be covered by another.
3. Take Inventory of Your Personal Belongings
The personal property coverage of your insurance plan pays to replace and repair belongings, such as jewelry, clothing, musical instruments, furniture, electronics, art, pots and pans, books, and even decorations throughout your home.
One of the best ways to figure out home much personal property coverage you need is to create a home inventory list. Having a good understanding of what you have and what you own can not only help you maximize your claim payment but also speed up the entire claims process. Making a home inventory is one of the smartest and easiest things you can do as a homeowner to prepare for an unexpected insurance claim.
4. Choose Your Deductible for Homeowners Insurance
Your deductible for homeowners insurance determines the amount you’ll have to pay before your insurance company will pay. The higher your deductible is, the lower your premium will be. Some policies have a deductible that’s a percentage, so make sure you understand the dollar amount to which that translates.
5. Get Enough Insurance to Cover A Rebuild
Some homeowners aren’t sure how much insurance they need. A good insurance provider will tell you you should always have as much home insurance as it would require to rebuild your property.
6. Ask All of Your Questions
When it comes to homeowners insurance, there is no such thing as “too many questions” or a “silly question.” If you have any questions, you should always ask your insurance representative or sales rep. Whether those questions are about your deductible for homeowners insurance or which events are covered and which aren’t, and anything else in between, the more you know, the better!
7. Look for Ways to Save
There are a few things you can do to bring down the cost of your premium:
- Raise Your Deductible — Want a lower premium? Then raise your deductible.
- Bundle Coverage — Did you know that purchasing your auto and homeowners coverage from the same insurance company could save you between 10 and 30 percent overall? To save even more, look into bundling your motorcycle or boat coverage. Not only will it save you money, but it will also simplify bill paying and record keeping.
- Make Home Improvements — If you replace old plumbing, add a security system, update the electrical, or make other home improvements, you can save between two to six percent for each project you complete.
8. Consider Bolstering Your Liability Coverage
As mentioned above, homeowners insurance does more than just cover your house and personal belongings. Homeowner insurance policies also offer liability coverage.
Liability insurance helps pay for legal defense teams, judgments, and settlements if someone were to sue you over injuries or pretty damage for which you’re held legally responsible.
For example, if a visitor slipped and fell at your home, a lawsuit would fall under your homeowners’ insurance liability coverage. A good rule of thumb is always purchasing enough liability coverage to cover your assets.
Need Homeowners Insurance? Contact Bear River Mutual Today!
If you are shopping for homeowners insurance or another type of insurance, such as car, health, business, or renters insurance, contact the professionals at Bear River Mutual Insurance today!
Our team is here to help you find the best policy for your specific needs and budget. You deserve to have peace of mind, and our insurance experts can help. If you live in Salt Lake City, Provo, Orem, or a surrounding city, contact us today to get your car, business, or homeowners insurance estimate today!
