Buying homeowners insurance should not be a complicated process, but it will take a little time and effort out of your day. It is crucial to get a good policy that will actually cover you financially if you should ever have to file a claim. A good home insurance policy will give you the peace of mind to go about your days without worrying about being covered.
But how do you go about it? You should know some tips on how to buy homeowners insurance in 2022, so let’s go over the 6 easy steps to purchasing home insurance.
1. Know What You Need
Before getting a good home insurance policy, you must know what you need and how much of it you require. It is not as simple as making a guess and writing a number down on the contract. You need to know exactly what your costs would be if you ever needed to file a claim.
- Value Of House – If you have not had your home valued within the last couple of years, you will want to start with that. You also need to check the costs of home supplies so you have an idea of how much specific repairs would cost. You will want a policy that covers the amount you would need to repair or replace your home, plus a little extra to allow for market fluctuations.
- Value Your Items – Next, you will need to write down all the items in your house that you will want to be replaced if anything should happen. Make an itemized list that includes the item name, serial number, original price, and current value. All this information will make it easier to fill out the application and have the accurate value you need. It will also help if you file a claim on any material items.
- Extra Items – If you have any costly items, such as antiques or family jewelry, you will want to get a separate policy for them. You still need to write the information on a separate sheet of paper so they do not get confused with your essential item lists.
Getting your information gathered and organized is the first step of the process, even if you already have insurance. You also need to keep these lists up to date so that when it comes to renewing your policy, you will know if you need to bump the coverage up to the next level.
2. Compare Policies
The next step in the process is to go to an online platform to compare insurance home and contents policies. The best way is to go to an online comparison site like the one above and type in your basic information. The system will connect you with some of their partners willing to work with you to get a good homeowners insurance policy without the hassle of calling around all day.
The offers that will be sent to you are estimations of what the policy would cover, so keep that in mind when you are going through them. You want to pick out the top three choices that offer the best policy for the most affordable price. Never assume that the cheapest policy is the best because that is not always the case.
3. Check The Details
It cannot be stressed enough that you need to read the offers, and all the contracts, from front to back. Do not skip over the exclusions or small print because these could come back to haunt you if you should ever have to file a claim. If you live in an area prone to nasty winds, you will want to make sure that you have protection against wind damage and impact damage, such as from trees falling and objects flying through the air.
You get the point. You need to understand the natural disasters that could happen in your area, as well as the levels of crime. If your insurance carrier is trying to exclude the things you need to be covered, you may have to rethink your choice and go with your second or third choice. Never get stuck in a contract that does not cover your financial needs.
4. Bundle Your Insurance Policies
Once you have a few good choices, it is time to ask some questions. You will want to know if you will get a discount if you bring the rest of your insurance plans. Most companies will give you discounts on all your policies, as long as they are all bundled under one large umbrella contract.
The reason for this is simple. The more you pay in premiums, the cheaper the carrier can make them because they will be making more profits off you than if you only have a home and contents policy.
5. Check The Amount Of Liability Insurance The Policy Has
Today nothing is more important than protecting yourself against the trend of people suing for trips and falls. It doesn’t matter if you have your property posted. You will have people coming onto your property and into your house. If the person does not live in the house with you, there is a chance that they could injure themselves. This can easily lead to a lawsuit against you to pay for medical bills and pain and suffering.
The liability insurance policy attached to your homeowner’s insurance contract should cover these costs. Still, you need to check and see where the limits are set. It may cost you a little more in premiums up front, but you will be thanking your lucky stars later on if you ever need to file a claim.
6. Make Your Choice
Now all that is left is for you to pick the insurance carrier that offers you the best terms and coverage amounts for the best price. Never go with the cheapest offer unless you know they are the best. By this point of the process, you should have a good idea of what the best policy offers are, so you should be able to make an educated decision that will not leave you out in the cold.
Final Thoughts On How to Get The Best Homeowners Insurance
Never let a salesperson talk you into getting the coverage you do not need or exclude something you want. That is why it is so crucial for you to be prepared before you start the actual process. You can search through as many offers as you want, and if you get some calls from the companies, you can ask them any questions you want an answer to. You never have to feel obligated to purchase from any of them.
In fact, if they are not one of your top choices, you can play hardball and see if they may offer you an even better offer simply because you are considering their competition. The insurance industry has tons of competition, so you can choose who you want to go with.