4 Homeowners Insurance Buying Mistakes
You have searched for weeks or months for a home for you and your family, a mortgage to borrow the money to buy the house and now that you are ready to close they tell you need a homeowners insurance policy before closing. Not to worry because insurance quotes are free.
Whether you are buying a condo, a townhouse or a single family home you are at risk of loss or damage to your home from weather, fire, vandalism or malicious mischief or theft. A homeowners insurance policy helps to give you the peace of mind that your investment is protected.
In this article we will discuss 4 mistakes that many homeowners make when shopping for homeowners insurance. Although we are licensed in Georgia the mistakes consumers make are universal when it comes to buying or shopping for home insurance. And if you're purchasing a home and obtaining a loan, the bank will require you to have a hazard insurance policy ( AKA a homeowners insurance policy )so the bank's loan is protected.
Of course, home insurance also protects your financial assets in the event that someone is accidentally injured on your property or even away from your primary home. Personal liability coverage protects your assets in the event of financial liability or lawsuit.
Mistake number 1- Looking for the cheapest quote
I am sure almost everyone has heard the expression €You get what you pay for€ and it holds true for homeowners insurance also.
When buying homeowners insurance, be sure to do some research. Here are things that you want to look for when seeking out a company:
Comprehensive coverage's, easy claim reporting and handling and coverage flexibility, adequate liability a good price and a A or higher rated insurance company
Most homeowners insurance policies should include loss of use, extended dwelling protection or replacement cost on the dwelling or both, personal liability, adequate coverage for your personal property, water back up and adequate coverage for mold remediation.
It is important to ask the right questions. Price is important but value is more important.
Mistake number 2 Under estimating your dwelling coverage:
It does not matter whether it is a starter home or your dream home, be sure to insure it based on the insurance companies estimated replacement cost. Many consumers and even insurance agents will try to insure a home for 75 to 80% of the value. While this may reduce your premium because you are buying less coverage, it may end up costing you in the long run when you file a claim.
In most cases the insurance agent has access to an replacement cost estimator that will give you the recommended amount of insurance to place on the dwelling. Your personal property coverage is typically anywhere from 50 to 70% of the dwelling coverage.
Mistake number 3 don't miss out on your discounts.
Many insurance companies reward customers who pay attention to security and safety and lower their risk of injury, accident, theft or other covered losses.
Things like your age if you are over 65 can lower your home insurance premiums as well as the items listed below:
€ Safer building materials
€ Security systems
€ Smoke alarms
€ Sprinkler systems
€ Deadbolt locks
€ Gated community
€ Multi policy discounts
Mistake number 4-Accepting a much higher deductible to lower your rate:
The standard deductible at this time is $500 to $1500 per occurrence. This is an acceptable deductible for a home valued at under $750,000. A higher deductible would not lower your premium significantly and a storm may hit at a time where you could not afford a $2500 to $5000 deductible. Try and obtain a policy with an insurance company that has s single deductible for both home and auto if there is a claim for both at the same time.
Be financially responsible. Insurance scores, used by insurance companies in some states, are partially based on your history of paying bills, managing credit and claims. The more financially responsible you are, the lower your rate.Practice safety in the home! Homeowners that present a lower risk generally get lower premiums.
For a great rate in Georgia, call us at 770-413-0807. It's free and it's fast!
Whether you are buying a condo, a townhouse or a single family home you are at risk of loss or damage to your home from weather, fire, vandalism or malicious mischief or theft. A homeowners insurance policy helps to give you the peace of mind that your investment is protected.
In this article we will discuss 4 mistakes that many homeowners make when shopping for homeowners insurance. Although we are licensed in Georgia the mistakes consumers make are universal when it comes to buying or shopping for home insurance. And if you're purchasing a home and obtaining a loan, the bank will require you to have a hazard insurance policy ( AKA a homeowners insurance policy )so the bank's loan is protected.
Of course, home insurance also protects your financial assets in the event that someone is accidentally injured on your property or even away from your primary home. Personal liability coverage protects your assets in the event of financial liability or lawsuit.
Mistake number 1- Looking for the cheapest quote
I am sure almost everyone has heard the expression €You get what you pay for€ and it holds true for homeowners insurance also.
When buying homeowners insurance, be sure to do some research. Here are things that you want to look for when seeking out a company:
Comprehensive coverage's, easy claim reporting and handling and coverage flexibility, adequate liability a good price and a A or higher rated insurance company
Most homeowners insurance policies should include loss of use, extended dwelling protection or replacement cost on the dwelling or both, personal liability, adequate coverage for your personal property, water back up and adequate coverage for mold remediation.
It is important to ask the right questions. Price is important but value is more important.
Mistake number 2 Under estimating your dwelling coverage:
It does not matter whether it is a starter home or your dream home, be sure to insure it based on the insurance companies estimated replacement cost. Many consumers and even insurance agents will try to insure a home for 75 to 80% of the value. While this may reduce your premium because you are buying less coverage, it may end up costing you in the long run when you file a claim.
In most cases the insurance agent has access to an replacement cost estimator that will give you the recommended amount of insurance to place on the dwelling. Your personal property coverage is typically anywhere from 50 to 70% of the dwelling coverage.
Mistake number 3 don't miss out on your discounts.
Many insurance companies reward customers who pay attention to security and safety and lower their risk of injury, accident, theft or other covered losses.
Things like your age if you are over 65 can lower your home insurance premiums as well as the items listed below:
€ Safer building materials
€ Security systems
€ Smoke alarms
€ Sprinkler systems
€ Deadbolt locks
€ Gated community
€ Multi policy discounts
Mistake number 4-Accepting a much higher deductible to lower your rate:
The standard deductible at this time is $500 to $1500 per occurrence. This is an acceptable deductible for a home valued at under $750,000. A higher deductible would not lower your premium significantly and a storm may hit at a time where you could not afford a $2500 to $5000 deductible. Try and obtain a policy with an insurance company that has s single deductible for both home and auto if there is a claim for both at the same time.
Be financially responsible. Insurance scores, used by insurance companies in some states, are partially based on your history of paying bills, managing credit and claims. The more financially responsible you are, the lower your rate.Practice safety in the home! Homeowners that present a lower risk generally get lower premiums.
For a great rate in Georgia, call us at 770-413-0807. It's free and it's fast!
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