Not all home insurance is created equal – and it certainly does not always cost the same. The price should never be the sole factor when choosing your coverage. Take note that other variables such as company reputation, claim process, and types and extent of coverage are as important as the premium.
The Importance of Adequate Standard Home Insurance
For most people, the house is the largest asset they will ever own. Consequently, just like your money in the bank, you have to make every effort to ensure that you are protected from losses in the event of burglary, earthquake, wild wires, flooding, and other destructive calamities.
Also, traditional lenders require anyone who seeks loans to have adequate home insurance. Hence, this is something you cannot bypass if you need house financing.
Types of Coverage Within Your Home Insurance Policy
Contrary to popular belief, the main structure of your property is not the only thing that you should get coverage for. Insurance should also cover expensive belongings such as jewelry and valuable art collection.
Additional structures such as decks, sheds, and garages must also be included in the policy.
Loss of use is another critical component that should be included in your home insurance. This allows you to reimburse your losses in the event of significant damage that renders your home uninhabitable and thus you have to find another dwelling.
Scrutinize Other Factors Aside from Premiums
Home insurance involves planning in the long run. This is particularly true for someone who plans to live in his house for five years or longer.
When deciding on your home insurance company and policy, avoid focusing too much on your premiums. This is a myopic attitude that may lead to your financial ruin in the event of significant damage to your property.
One of the factors that you should weigh is the deductible, which is the amount you pay out of pocket for damages. Cheap insurance comes with a cheap premium, which of course has its own caveat: Large deductibles that you may not even afford. Hence, shopping for home insurance requires being honest with yourself about your own financial standing.
Also, go for an insurance company known for its efficient and fast claim handling and a customer-centric approach.
You may also want liability insurance, which can protect homeowners from expensive litigation. This additional coverage offers protection from financial ruin that often comes with a major lawsuit.
Ways to Lower Your Home Insurance Premiums
You can lower your insurance premiums without having to accept the exorbitant deductibles. You can do this by simply installing security systems and fire alarm and suppression systems, and removing hazardous contents or features from your property. Having a wind mitigation inspection can also help lower your premiums.
The accumulated discounts from adopting these risk-reducing measures can result in thousands of dollars saved over the coming years.
Aside from risk-reducing measures, you can further lower your premiums if you have multi-policy (home, auto, and life insurance) from the same company.
To learn more about home insurance policies, contact Absolute Choice Insurance! We provide affordable auto, home, and commercial insurance combined with a customer-centric approach.