It takes a lot of effort to purchase a home, so why wouldn't you want to protect it? Home insurance offers financial compensation when your home or property is damaged or destroyed. Having the right policy can be a godsend in a difficult time. This guide will help you prepare for buying your first home insurance policy.
1. Understand the exact value of your home.
How much insurance will you need? If you don't know how much your home is worth, you need to find out now. An assessment company will be able to help you determine the best value of the home.
2. Understand potential risk factors.
The premium you pay on your home insurance is based on the company's risk of selling you a policy. When the possibility of something happening to your home is high, your premium is high too. These potential risks include local crime rates, trees on your property, busy streets around the home, and what types of items you have on your property (like a lake or trampoline).
3. Take steps to save money on your premium.
You may be able to save money by taking steps to protect your home. For example, you could purchase and install a burglary alarm or a set of deadbolts. You can update your home's heating or electrical systems. Anything that creates a lower chance of injury or damage to the home, like purchasing a home near a fire hydrant, may help you save on the premium.
4. Take stock of your possessions.
Accuracy is important as you take this step. Inventory everything you own, from your dining room table to your flat-screen television. It's easiest to do this as you're packing up and moving and then to type it up so that everything is readily available when you need it. It's also wise to take photos and scan receipts.
5. Purchase the coverage you need.
Many people don't understand their insurance coverage and are surprised when something bad happens. Insurance policies are complicated and uninteresting, but there is still a lot you need to understand. Most standard policies don't cover flooding or earthquakes, for instance. A real estate lawyer or attorney can help you understand your policy.
Finally, do not be afraid to ask questions. Insurance is not the most interesting subject, and this can make it difficult for the layperson to understand. Home insurance can be tricky, but agents like those at Northeast Insurance Agency can answer all your questions.