What You Should Know Before Buying a Home Insurance Policy

Purchasing a home is the biggest expense many people will ever make. It's often considered an asset, and should be protected as such. That means purchasing homeowners insurance to make sure you're covered in the event of damage or disaster. Purchasing insurance isn't always a straightforward process though. There are things you should know before you purchase a policy.

Your Deductible

What you pay in regards to your insurance policy is divided up into two primary costs: your premium and your deductible. Your premium is the amount you pay for insurance each month. Your deductible is the amount of money you are responsible to pay before your insurance kicks in. These two costs are typically inversely proportional to one another. Since disasters and instances when you would need to take advantage of your insurance policy are likely to be infrequent, you can end up saving money by raising your deductible to lower your premiums. To make sure you're completely covered financially, save money equal to your deductible to cover those costs should they be incurred.

Source: https://www.iii.org/article/understanding-your-insurance-deductibles

What It Doesn’t Cover

If you don't read through your policy carefully, you may end up being surprised by what it does and doesn't cover. Typically, homeowners insurance will cover disasters that originate in the home. Things like house fires and flooding due to broken pipes within the home are typically covered. Earthquakes and flooding that occurs due to other reasons outside the home usually aren't. Home insurance should be paired with specific policies that cover disasters in your area. This will help you make sure your home has complete coverage specifically designed to meet your needs.

Source: https://www.podium.com/article/most-profitable-insurance-to-sell/

Shopping Around

Purchasing homeowners insurance isn't something you should just rush into. Different companies have different policies and you won't know which is best for you if you don't take the time to compare insurance companies and their quotes. If you're preparing to purchase a home, plan to start at least a month in advance. Most lenders will require you to carry insurance. You won't be able to close the sale without it. Starting well in advance gives you plenty of time to find a policy you're satisfied with.

Source: https://homeguides.sfgate.com/compare-homeowners-insurance-companies-7073.html

Homeowners insurance is an important protective measure against disaster. Before you purchase a policy, you should be familiar with your deductible and what impacts it, know what your policy does and doesn't cover, and give yourself enough time to shop around before settling on a policy. This will help you make sure you have the coverage you need at the right cost, protecting yourself and your home.

We have lots of great home insurance options available to help protect your home. Request a free quote from us today!