6 Tips to Consider Before Purchasing a New Home Insurance Policy
Buying your very own house is one of life’s biggest milestones. Whether it’s a mansion, a condo unit or a cozy bungalow, a house is a valuable investment. It gives you safety, shelter, and space to keep all your belongings. Because it is such a significant aspect in everyone’s life, its security and protection should be prioritized.
Homeowner’s insurance covers your house and your personal belongings such as furniture, appliances, electronics and clothes protection in the event of disaster and theft. Even if you live in a safe neighborhood and rarely experience typhoon or floods, having home insurance is a safety net against unforeseen circumstances. It also gives you peace of mind when you and your family are away on vacation.
If you are re-assessing your current plan or are in the market for a new one, it is vital to renew your existing policy. This allows policy owners to get the best prices and update their coverage. A lot of people may think that this process may not be worth it as it could be time- consuming and involves a lot of paperwork. But experts reassure that the benefits of getting a new policy that fits your home’s current state often outweighs the minor hassle it takes to get there.
Insurance companies typically change their policy rates annually and recommend policy owners to review their plans every three years. The policy you bought years ago for a cheaper price may no longer give you the coverage you need. Shopping around for new homeowner’s insurance could help you save between $350 to $2100 annually depending on the state you live in.
Consider these when Shopping (Again) for Home Insurance:
1. Create an Inventory of Your Items
If you have acquired new appliances or valuable items from the period before your last homeowner’s insurance expired, you need to specify that in your inventory along with your other items. Any repairs, removals or additions done to your house such as pool installation or adding a room to your home should also be mentioned to get the best coverage for your property.
2. Review Your Previous Policy
Every year, your home may have gone through remodeling and repairs. The insurance policy you had three years ago may no longer give you the coverage you want and need. Its coverage also does not apply to the things you recently bought or acquired. With the changes in the economy, the price you bought your previous policy for may translate to a more expensive cost in the current market and with less coverage than what you need. Ideally, your policy should be reviewed at least every three years.
3. Ask if you qualify for a discount
Homeowner’s insurance providers typically give loyalty discounts of five to ten percent to long-term policyholders. Taking a higher deductible will also qualify you for a discount on your premium. If your home has security features or uses disaster-resistant materials for roofing and windows, you will most likely pay less for your homeowner’s insurance policy.
4. Shop for bundled home and auto insurance
Bundling your home and auto insurance saves you money and often gives you the best deal. In cases like these, some insurance providers may offer discounts of 20 to 30 percent on policyholder’s premiums. If you own different assets and want to combine policies rather than avail separate ones, you can ask for unique product tiers.
5. Make sure to get the coverage you need
Some providers offer a cheaper price for the insurance policy, but does it have the coverage you need? Don’t just focus on savings. If you live in a high-risk area, a basic home insurance policy may not have enough coverage to protect your property even from casualties. This also applies if you own a pet that cannot be covered by homeowner’s insurance. You would need to avail of a pet canine liability on top of your homeowner’s insurance to get the best out of its liability protection.
6. Consult a trusted third-party site
Make a comparison of what insurance companies offer - the coverage included, the premium of the policy and if they can offer any discount. Make sure to specify your belongings, their estimated worth, any repairs or additions made in the house and the square footage of your home. Our site guides clients with what type of homeowner’s policy the need and show the companies that offer the best prices.