Purchasing a home can be an ominous task even for the seasoned home owner. Decisions concerning types of mortgages available, appraisals, title searches, and a whole host of daunting choices seem endless. Included in this sea of paperwork is selecting which homeowner’s insurance you will decide to take out. To make this choice easier, the professionals at Absolute Choice Insurance have compiled a list of 5 tips to make choosing homeowner’s insurance stress-free.
5 Tips for Choosing Homeowners Insurance
1. Determine How Much Coverage You Need
In the event you suffer a loss that requires you to replace your home, do you know how much insurance you will need to cover that expense? In the past, homeowner’s insurance used to guarantee the replacement cost of an irreparably damaged home. Today, insurance policies replace the cost of the home while adding a percentage replacement cost. The resulting figure does not always guarantee your home can be completely replaced. Before you purchase a policy, be sure this amount will cover all of your costs or you might come up short.
2. Assess Your Home’s Insurability
How old is your home? How is it constructed? Have your home’s plumbing and electrical systems been upgraded recently? These might seem like obvious questions when determining what homeowner’s insurance policy to apply for, but do you know which answers to these questions may disqualify you for insurance? What about not so obvious questions, such as is your home in a more isolated area where facilities such as fire hydrants are scarce or nonexistent? All of these considerations determine whether your home is insurable.
3. Be Aware of Your Deductibles
One of the biggest mistakes homeowners can make is accepting an insurance policy with a very low premium, only to find out that this was not a money saving decision once disaster strikes. Be sure to choose a policy that ensures you will be able to cover your deductibles if the need arises.
4. Choose the Right Policy Options
Every insurance policy will offer the minimum coverage necessary for a mortgage, and local and state regulations. However, have you considered additional options that can prove beneficial in the long run, such as liability coverage? Are you aware in which circumstances liability coverage can be beneficial?
5. Look for Available Discounts
Are you aware that under certain conditions you may be eligible for homeowner’s insurance discounts? Something as simple as installing a security system or even being of a certain age, with some companies, can save you as much as 10%. Purchasing your homeowner’s insurance policy in a bundle, such as Homeowner’s, auto, and life insurance can also result in great discounts.
Ultimately, the best homeowner’s insurance policy for you is the one that best serves your specific needs. The insurance agents and professionals at Absolute Choice Insurance can aid you in making the right choices, not only for homeowner’s insurance, but for all of your insurance needs, whether they be homeowners insurance, commercial insurance, auto insurance, or any other insurance products. For more information, you can visit their website at www.absolutechoiceinsurance.com or give them a call at (407-344-4444), and a representative will be happy to assist you.