WHAT DO YOU NEED TO KNOW ABOUT HOME INSURANCE

Buying a home is one of the largest investments you’ll make in your lifetime, both financially and emotionally. Here are some helpful tips to protect your investment:

• Shop around — When you purchase a home, the lender will require you to get homeowners insurance. To find a policy, consider getting quotes from a handful of home insurance companies and assess their coverage, limits, and deductibles. Start from your auto insurance provider, they might offer home insurance as well. 
  
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• Know Company Rating — You can find out more info on the company rating at AMBest.com or PolicyGenius.com

• Discounts — Most companies offer homeowners insurance discounts for behavior that mitigates risks, so take advantage of them. From storm shutter installation and smoke detectors, to burglar alarms and water safety systems, you may be able to save some extra cash on your home insurance premium.

• Know Your Costs — Remember, you’re going to want your house insured for its replacement cost, not its market value. While the market value denotes the amount a buyer pays for the home, the replacement cost concerns the expenses needed to repair or rebuild the entire home. Keep in mind the costs that may be required to transport the materials to the site, as well as other factors like inflation.

• Ask Questions — Do I need earthquake insurance? Do I need flood insurance? Are there any coverage exclusions I need to know about? How do you handle claims if I need to file one? Am I getting all the discounts available ?

• Know your Coverage — Homeowners not understanding their coverage is a more common issue than one might think. And in a way, it’s understandable. A standard homeowners insurance policy is an intricate piece of literature, outlining the nuances of what is and isn’t covered — it’s also not a particularly riveting read.

• Review Your Home Insurance Needs Every Year — Check with your insurance agent at least once a year to make sure your policy provides adequate coverage. The addition of a room, new insulation or remodeling add value to your home and therefore may increase replacement cost.

Your policy is important, if you have questions, speak with your insurer and ask them to explain anything you don’t understand.