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There are a lot of decisions to make when purchasing your home. If you’re purchasing your first home, those choices can seem overwhelming. But, even amid all the craziness, don’t forget about home insurance. This policy can play an important role in protecting you, your home, and your assets from future disasters.
Not sure where to start? Here are few things you should consider when purchasing home insurance.
The Rebuild Cost
What if tragedy strikes and you have to completely rebuild your home? When deciding how much building insurance you need, you should consider the rebuild cost. This can be easy to overestimate as many people tend to forget that this cost only includes the cost of building the house, not securing the land. You pay for that when you purchase your home. Land is included in the home’s market value so don’t assume that you need to cover the entire amount of your home’s market value.
Your insurance agent can help you find that value of the materials and labor needed to rebuild your home in the event of an emergency.
The Cost of Your Stuff
You keep all your stuff in your house. If something happens to your house, something happens to your stuff. Insuring your things can get tricky because it often depends on a number of factors like the value of the items, if they stay in the house or travel with you, and if they’re for work or pleasure.
But it’s important to try and accurately estimate the value of the items you would like covered and make sure you have the right right policies to cover those items. This might appear as an extra “contents replacement cost” on your policy so you need to know what to look for.
Your insurance agent can help you make both these estimates and choices.
The Requirements
There are none. That’s right, there are no state-mandated requirements for homeowners coverage (as there are for auto insurance in most states), and a mortgage lender may only require you to insure for 80 percent of the replacement value of your home. But keep in mind that no insurance, or even too little insurance, could be devastating in the event of an emergency. But no insurance, or too little, could leave you stranded.
Liability Protection
We’ve talked about liability protection in terms of your business, but you should seriously consider purchasing it with your home policy. Like with your business, liability protection protects you and your assets in the event you’re sued. Depending on where you live, you could be sued for nearly all your assets— including investments, real estate, and personal property. So be sure to consider this when purchasing liability protection.
A Flood
Even if a flood seems unlikely in your area, flood insurance is a good idea. Most policies cover flood damage even if it’s caused by a pipe bursting or other dysfunctional systems in your home.
Given the price of coverage—and the fact that about a quarter of flood claims come from low to moderate-risk areas—it’s a worthwhile expense for many people.
Ways to Lower Your Premium
If you’re looking into homeowner’s insurance, consider some ways to lower your premium when you purchase.
Try:
- Bundling coverage
- Choosing a higher deductible
- Adding a security system
- Replacing old plumbing
- Adding leak detection sensors
Anything you can do to help prevent accidents in your home will help you pay less for homeowner’s insurance!
Different policies cover different aspects of your home and while it can seem confusing or overwhelming, the best choice you can make for your home is choosing the right insurance agent.
Need an agent who can help you out? Give us a call today. With nearly 60 years of experience as your local, independent insurance agency, you can trust the Holt & Dimondale Agency to find the best products to fit your insurance needs.
