Home insurance may not be your favorite thing to think about. We get it – home insurance can get complicated. Maybe you had a stressful experience in the past, or maybe you’re getting coverage for your first home and you’re a little overwhelmed. Or maybe you’re shopping for rates.
But don’t worry: we’ve got eight pro tips for buying home insurance coming your way.
1. Bundle your home and auto insurance.
Bundling is when you get multiple types of coverage from the same company. Some companies offer discounts for bundling your home insurance and auto insurance, so this could be an easy way to get some savings. Of course, it’s still a good idea to get multiple quotes for home and auto insurance and shop around to make sure you’re getting the best coverage at the best price.
2. Don’t sacrifice coverage for price.
It might seem like a great idea to jump at the lowest price you can find. But before you do, you need to take a good look at the various coverages and limits offered by each policy. One policy may be more expensive, but it might include more extensive coverage and protect you from more losses than another, less expensive one. Make sure you’re comparing apples to apples. And don’t sacrifice coverage for the sake of paying less – this is your home you’re insuring, remember.
3. Be aware of any exclusions.
Knowing exactly what your policy does and does not cover is important.
Here’s the thing:
Home insurance comes with certain exclusions (or losses that simply aren’t covered.) For example, flooding is a common home insurance exclusion. It’s a good idea to familiarize yourself with any exclusions and limits in your policy so you can add coverage as needed, such as extra coverage for jewelry or valuables. It’s always best to be prepared, right?
4. Insure your home for its reconstruction value.
If your home was destroyed by a fire, you would want all of the expenses of rebuilding it to be covered, yes?
To make sure homeowners insurance will give you a brand-new house, you need to take reconstruction costs into account. That means the expenses of demolition, clean-up, and construction. Covering these (surprise) expenses means insuring your home for its reconstruction value, not its market value (which would leave you high and dry where those construction costs are concerned.)
5. Insure your belongings for their replacement cost, not their actual cash value (ACV.)
Here’s the difference:
Replacement cost coverage allows you to replace your belongings at today’s prices.
Actual cash value only gives you the cost of your belongings at the time of the loss. Since depreciation is the fact of life, chances are that amount you get from insurance will be less than what you paid for your belongings…and probably not enough to replace them at today’s prices.
6. Don’t skip your home inventory.
A home inventory is basically a list of all your belongings and their value. Taking a home inventory helps you get an idea of how much coverage you need to for your personal property. It can also help you if you ever have to file a claim – you’d know exactly what you need to claim, and having an inventory (preferably with pictures) adds credibility.
7. Do some research on the company you’re considering.
This is the company you’re trusting to have your back if you have a claim. Be sure to check out their financial stability, customer service record, and claims-handling process and reputation. You want a company that’s going to be there for you, so do some research about Georgia home insurance companies.
8. Don’t forget to ask about discounts.
Discounts are a great way to save money. Basically, you get a reduced price for meeting certain qualifications. For instance, you could get a discount for having a monitored burglar alarm or for bundling your home and auto insurance. Now, different companies offer different discounts, so be sure to ask about potential savings when you’re shopping for insurance.
9. Ask family and friends.
Why not ask your family and friends for home insurance recommendations? It can be hard to know where to start with insuring your home, but you might get some leads by asking around. It never hurts to ask.
10. Shop around.
Shopping around for home insurance can help you save money on your rates and find out what options are out there. Every insurance carrier evaluates risk differently, so it can pay off to get multiple quotes. You don’t have to feel obligated to take the first option you find.
Our team would be happy to help you shop for your home insurance. Our goal is to make insurance easy and help homeowners save money. To get home insurance quotes, fill out our online form or give us a call today.