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Essential Tips for Choosing Homeowners Insurance

Updated: Feb 7, 2023

Plenty of buyers, whether first-time or experienced, wonder, “Do I really need homeowners insurance?”




The fact is, you never know when an emergency will happen, and for those rare but potential instances, your policy becomes a financial lifesaver. Whether your property experiences damage, something gets stolen, or you have to temporarily relocate elsewhere, your coverage assists you through these situations.


Additionally, many lenders won’t even grant you a loan without coverage. So, if you’re in the process of purchasing a home, don’t forget to include this step.












Yet, not all coverage solutions are alike, so to get your needs met, keep these tips in mind:


1. WHAT’S BEING COVERED

Some homeowners find out too late how little their policy covers. Generally, homeowners insurance can encompass:


  • The Main Structure – includes replacement costs, labor, and materials.

  • Any Additional Structures – For sheds, RVs, swimming pools, and other auxiliary features, you may want to consider a rider.

  • Contents – Your primary policy only covers so much when jewelry, equipment, and other expensive items are stolen or damaged. A rider assists with extending coverage.

  • Liability – Concerned about a lawsuit? Liability coverage protects your assets and covers your costs if someone is injured on your property.

  • Loss of Use – If your home is damaged to the point of being unlivable, this aspect pays for you to temporarily relocate.


2. SHOP AROUND Never accept the first offer. Explore all possibilities out there to meet your situation; experts even advise getting quotes from at least three companies and then comparing your premiums, deductibles, and coverage.


3. LOOK FOR DISCOUNTS

Instead of accepting substandard coverage, look for areas in which you can get a discount. Some include:

  • Installing security devices and fire protection.

  • Upgrading old features

  • Removing risky aspects

  • Bundle policies

  • Certain occupations


4. EVALUATE YOUR DEDUCTIBLE TO YOUR PREMIUMS

Many start to think, “If I just opted for a higher deductible, I’d get to have lower premiums.” While true, realize that, after damage, an emergency, or theft occurs, you’ll be left paying that deductible. Will you be able to pay it all at once? If not, opt for a lower deductible, and stick with higher premiums for the time being.


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