If this is your first time to shop around for Homeowners insurance, here’s what you should look out for based on a list from US News. These four things should always be kept in mind while you search for the kind of coverage that’s right for you:
- Compare. Researching insurance can be frustrating, especially for a first-time buyer. Luckily, there are plenty of companies out there that offer great coverage: you just have to learn how to pick them out from the crowd. One way to pull this off is to create a list of the insurance companies that you think really fit the bill, in terms of delivering what you want on relatively good terms. The price has to be right too, of course. But price isn’t the only consideration. What’s more important are the terms, the extent of the coverage. For instance, is flood insurance covered or not? Will you need to buy additional insurance policies? Compare all your choices and go with the company that gives you the best coverage.
- Kill two birds with one stone. People ordinarily add their monthly insurance charges to their mortgage payments. This setup gets the lender to shell out dollars to cover your insurance premiums along with your property taxes. The money, in this case, springs from your escrow account. It’s a great setup for lenders since they know you’re not defaulting on your premiums, so they can breathe easy knowing that their investment is safe and sound. It’s likely, however, that at the time of closing, you’ll end up paying for a year of insurance. So when you start looking for a homeowners insurance, be sure to have the money to pay for your first year’s premium ready. Set it aside in advance.
- Know your coverage. Don’t settle for inadequate coverage. Know what you’re entitled to. Here are some levels of coverage to get you up to speed:
- a. Broad policies – some usually include coverage for 16 perils while others protect against all perils, except from specific ones mentioned in the policy.
- b. Premium policies are often used for new homes.
- c. Insurance for condominiums – also covers personal property coverage, liability coverage along with coverage of any sort of improvements for the owner’s home.
- Understand your policy. Learn all the terms, what they mean. Know all the details, inside-out. That, most of all, will ensure you won’t miss anything. That mindfulness will help you a lot as you search for the right insurance policy for your home.
Shopping for homeowners insurance? At Allstate, we offer you coverage that meets your financial needs.
