Buying Homeowner's Insurance: A Process

If you've recently purchased a new home, one of the most important things you need to do is to make sure that you're adequately insured against anything that may go wrong. From natural disasters to thieves that would break in and run off with just about anything that's not nailed down, a homeowner's insurance policy will ensure that virtually no eventuality that occurs will become a financial death knell for you and your family. But, make no mistake, quality coverage like this for a home will not exactly be cheap. You therefore want to make sure that the policy you buy will cover all the 'what ifs' that may come up. Listed below are a few things to keep mind when considering and evaluating homeowners insurance.

Compare, compare and compare some more

You should obtain at least five insurance quotes to compare before selecting a homeowner's insurance policy. While it may take a little time to call around and go through the questionnaires necessary to get those quotes, it'll well be worth it in the long run. If you consider that getting each quote may take you about 10- to 30 minutes, that's only a few hours of time up front in searching for a home insurance rate that could end up saving you hundreds or even thousands of dollars over the long-term purchase of your insurance.

Exclusions

Make no mistake; all homeowners' insurance policies are not created equal. Some policies exclude seemingly common items from coverage. Read each plan's details carefully to make sure that any exclusions listed do not remove coverage options you really need.

Lowering premiums

There are often things you can do that will lower your home insurance premiums. Have a talk with the insurance agent to learn about any offered discounts that you may be able to take advantage of. For instance, some home insurance policies offer a premium discount for proper landscaping that will lower the risk of a fire that's moving through the area from spreading to your home. Another discount that may be available is for the absence or elimination of potholes near your home. Since these are places at which a person could be injured, having them repaired could mean a significant savings.

Keep in mind that while your home may not meet all the reduction requirements when you move in, if you later fix these items you can contact the insurance company and ask them to adjust your premium.

Loyalty discounts

Many insurance companies appreciate loyal customers. The longer you stay with them paying premiums, the less work they have to do to find more clients. For this reason many offer loyalty discounts after you've been with them for a few years. Be sure to ask for this one.

Post-policy shopping

Remember, just because you currently have insurance policy doesn't mean you should automatically stop looking at what's available on the market. You should always keep a watchful eye on insurance options and prices to see if there's a better deal to be had.

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