Choosing homeowners insurance is a very important part of the homebuying experience. In fact, most mortgage companies require borrowers to have coverage for the value of their home and will not offer services without proof.
Required or not, insurance is a valuable factor that you will want to consider carefully and choose wisely. But how do you know if you’re getting the coverage you need at a fair price?
Here, we discuss the critical basics of buying homeowners insurance and how to ensure that you make the right choices for your individual needs.
Let’s begin –
Consider Shopping Local
Like many services, it’s best to first try and shop for homeowners insurance locally. The reason is that a local insurance agency will understand the best types of coverages and deals for a home in your area, as it is an area they are intimately familiar with.
Using an agent who fully understands the potential for specific issues requiring coverage to arise in your area is an invaluable asset to have on your side when choosing insurance.
Get Multiple Homeowners Insurance Quotes
Take your time researching, and don’t settle with the first quote you receive. Be sure to ask around, get recommendations, and try to find the best price and coverage available.
At the end of the day, insurance operates like any other business, so don’t be afraid to keep looking if you aren’t happy with certain recommendations or pricing.
Decide on a Reputable Company
When shopping for home insurance, you’ll want to look at more than just the numbers. Be sure to closely examine each company to ensure they are a good fit.
Although some agencies may promise to offer the best prices, a history of terrible customer service and consistent failures to fulfill duties to their clients is something you’ll want to avoid at all costs.
So, be sure to read company reviews, as well as ask around your community for advice and opinions.
Look for Homeowners Insurance Discounts Along the Way
Yes, you read correctly. Look for the discounts!
One of the best ways to lower your homeowners insurance costs is to take advantage of any available discounts. Because discounts on homeowners insurance are not standardized across agencies, you may have to do a little digging and ask questions.
Some of the top savings offered may include a discount for:
- New Home Construction
- Bundling/Multi-policy discounts
- The home’s age – Typically 10 years or less
- Roof Upgrade
- Safety & Security Systems
- Loyalty Discounts
- Specific Types of Home Improvement
- Having an HOA
These are just a few of the top discounts you’ll want to be sure to ask your insurance agent about. If some of these savings are available to you, why not take advantage of them?
Understand the Coverages & Protections Offered
This step is very important. You want to make sure you fully understand all of the benefits, responsibilities, and coverages that come with your homeowners insurance policy.
The last thing you want to deal with is not being covered for something important when it’s too late simply because you didn’t ask enough questions and make it a point to understand what you’re getting.
Good home insurance coverage isn’t cheap, so be sure to do as much research as possible and make fully informed decisions every step of the way.
Speak with Your Real Estate Agent
Last but certainly not least, consult an expert real estate agent.
A real estate agent can provide great advice on homeowners insurance in your area and for your particular home.
If you’re looking to buy a home and want someone in your corner to point you in the right direction every step of the way, call Key Realtors today at 281-454-4500.
