Buying a house is a milestone and it can be an exciting thing. It is also a huge responsibility and you want to make sure that you dot all of your I’s and cross all of your T’s in the process.
Homeowner’s insurance might not be something that you think about right at the beginning, but it can offer many benefits and prevent potential grief down the road.
What is homeowner’s insurance?
Homeowner’s insurance is an insurance policy that covers private homes. It combines various personal insurance protections as well as liability insurance for accidents that can happen to anyone at any given home.
Actual cost value vs. replacement cost
Actual cash value refers to the depreciated value of the damaged property that the homeowner is entitled to. With replacement cost coverage, the homeowner is reimbursed a necessary amount to replace whatever it was that was damaged.
Factors that you should you consider when purchasing homeowner’s insurance
Considering a number of factors is important in any insurance purchase. The most important thing is for you to purchase the amount and type of insurance that you need; it is better to be
safe than sorry. It is important to remember that, “if your policy limit is less than 80% of the cost of your home, any loss payment from your insurance company will be subject to a coinsurance
After you have considered these, as well as other factors, you should decide who you want your insurer to be. That is entirely a personal decision based on the research you have conducted, but you can ask for assistance from an insurance agent if you so choose.
How can I lower the cost of my homeowner’s insurance?
Like in any other aspect of home buying, it is important to shop around and do your research. Don’t settle for the first insurance option you find because different insurance companies could
vary a little and in some cases, by hundreds of dollars. Searching for discounts you may be qualified for is also another way to save on your homeowners insurance. Some insurers offer discounts for having a security system in your home or deadbolt lock on your door; that sounds
like a safe way to save money!
To learn more about homeowner’s insurance and answers to frequently asked questions, visit