With all the time, energy, and excitement that goes into purchasing a home, homeowner’s insurance can sometimes be the last thing on your mind. Don’t let homeowner’s insurance fall by the wayside—research your options carefully before choosing so you know you’ll be covered in the event of a disaster.
Follow these four tips for finding the best homeowner’s insurance for your needs:
Know Your Budget And What You Need Covered
It doesn’t do you, or your house, any good if you are underinsured. Neither does it help if you are paying for insurance that you cannot afford. Before purchasing, know how much you can safely spend each month and what you need covered, like flood or earthquake. Remember to keep high-value personal items like jewelry in mind when shopping around, as you may be able to add a “personal articles floater” that will insure these items for their current purchase price or most recent appraised value.
Research The Company
Who you choose to insure with is just as important as the insurance itself. Always research the company and review their complaint record and customer satisfaction. Is the company and their agents easy to get in contact with? Do they answer your questions in a timely manner?
It’s also a good idea to talk to friends and family about their experiences.
Get As Much Information As Possible
It’s always a good idea to know as much as the lingo as possible so you know what common terms and phrases mean. Know what terms like “replacement value” means allows you have a better understanding of what it is you’re paying for. For example, Replacement value is the what it would cost today to rebuild your home from the foundation up. This is different from market value, which is how much a buyer will realistically pay for the home.
Armed with knowledge, you’ll be able to savvily shop.
Know Where You Live
Is your home located in an area that is prone to natural disasters like flooding? If so, you may need to purchase extra insurance, as homeowner’s insurance rarely covers events like these. Your insurance agent and realtor will be able to help you understand the area. In fact, if you live in a high-risk area, your lender may require you to purchase extra insurance before you can take out a mortgage. Loan.
Get Help From The Experts
When searching for a home and homeowner’s insurance, know that you aren’t doing it alone. The professionals at Eric Merchant can help you through the process thanks to our years of experience buying and selling a wide variety of homes and properties throughout the Midwest.