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What You Should Consider When Buying Home Insurance
When buying a home, many people overlook the importance of shopping for home insurance. Insurance agents do find it ordinary to get those last-minute phone calls from title and/or escrow companies asking for a home insurance binder. To avoid this complication, start looking for a suitable homeowner policy as soon as both parties have agreed on a price.
Below are tips to help you find the right homeowner insurance:
To determine insurability, your insurance agent will want to know things like how old the house and its plumbing and electrical systems are, its location, the type of roof it has, square footage, how many claims were filed 5 years going back, and so on.
If the house is located in a rural area where there is no fire department close by or no fire hydrant on the street, some insurers may refuse to insure it. If that is the case, you can approach a specialty or surplus-lines insurance company, but it usually takes longer to get a quote from them.
The bigger your deductible, the bigger your insurance savings. Discounts usually begin at a deductible of $500, going upward as the deductible climbs. The highest deductible you can get with most companies is $10,000, but keep in mind that in most cases, you cannot get a deductible above $1,000. Make sure you and your lender are clear on this before you opt for a higher deductible.
Your Insurance Needs
In most cases, agents will rely on a cost estimator to know cost replacement estimates. The purpose is to make sure that your house will be sufficiently insured. Remember that insurance firms do not insure dirt, so if you bought a house with a massive lawn, don’t be astonished when you learn that you are covered for a much smaller value compared to the price for which you bought the house. Insurance only covers the house itself, not the land.
You can actually make choices on your home insurance coverage as per your preference. One is liability coverage, which is usually overlooked. This policy protects you when there are claims of bodily injury or property damage. Let’s say your neighbor’s house is on fire and you caused it because of some accident. You might have to leave the area, but your policy will pay your neighbor.
Lastly, ensure that you’re actually enjoying all the credits that you are qualified for. For example, you have a home alarm system that is monitored by a central station, this will probably fetch you up to a 10% discount. Let your agent discuss with you these discounts.