When you are in the process of buying a home or simply looking into buying a home, the lender you work with will likely require that you purchase homeowners insurance. Unfortunately, many homeowners simply buy the policy their lender recommends without fully understanding the options they have and all the intricate features that home insurance can provide if they take the time to do their research. Below are five crucial things that every homeowner should know about home insurance.
It’s Absolutely Necessary
This may sound obvious, but the first thing you need to know about homeowners insurance is that you absolutely need it. Every homeowner needs to be protected against damage to their property or liability for an accident that happens on their property. Unlike car insurance, there isn’t a concrete law saying you must have home insurance. The lender you work with will typically require you to get home insurance. However, many people don’t realize that home insurance also protects them if someone else gets hurt on their property. Not having home insurance can leave you in a financial nightmare.
Determine How Much Coverage You Need
Homeowners insurance is never the place to skimp. If a disaster occurs or an accident happens, better coverage means you will pay less out of pocket. At the bare minimum, your policy should cover the amount of your mortgage.
Choose a Deductible You’re Comfortable With
When it comes down to it, your deductible will be one of the most relevant factors in choosing homeowners insurance. Make absolutely certain that you are truly comfortable paying the deductible out-of-pocket at any given time. Remember, the less your deductible, the more you will pay for your insurance.
Get Multiple Quotes
Committing to a company that will provide your home insurance is actually a very big deal. Your lender may recommend a specific insurance company, but you are in no way required to work with that company. You should seek out at least three separate quotes in order to weight them against each other. Don’t simply look at the cost of the policy when you are comparing quotes. Make sure to look at the services they provide, the deductible, and, most importantly, take the time to do some research on online reviews from actual customers.
Speak to Your REALTOR About Discount
The best realtors® typically will know of ways that you can gain access to discounts or special offers when you are shopping around for homeowners insurance. They can also help ensure you are working with a quality company that can provide you with solid, realistic advice on how much insurance you need. If you haven’t found a real estate agent yet, you can utilize Effective Agents’ algorithm that analyzes proven data to match you with a list of truly exceptional real estate agents that are accustomed to working with homeowners like you.