The things that you care about most require your complete attention and protection. You can’t place value on your family, friends, and other loved ones. Aside from the most important people in your life, you may be most concerned about the well-being of your home. After all, this is an enormous investment, and it protects those who are closest to you. It’s no wonder choosing the right homeowners insurance coverage is so critical. As you prepare to buy your first place, you should be on the lookout for the best homeowners insurance available. Do your research ahead of time and learn as much as possible, as your agent won’t tell you everything there is to know about your coverage.
It’s Good to Review Your Policy Every Year
Choosing a homeowners insurance company does not lock you into a policy for life. You are free to shop around and switch providers when it feels right to you. Some agents won’t talk about this because they want you to be a long-term customer. However, it’s smart to look closely at your policy at least once a year and see if it is meeting your needs. Ask yourself if you’re happy with the monthly premium and satisfied with your coverage levels and rates. Most policies are set up in six- or 12-month periods, so you can switch to a different company at the end of these periods if you choose to.
You Can Play With the Deductible
When you file a claim, you must first pay a certain amount before the coverage kicks in and takes care of the rest. This is called the deductible. You’ll see it with health coverage as well. Some agents may simply set deductible levels for you right from the start. But these costs are negotiable. Ask about either raising or lowering these amounts. A higher deductible will result in lower premiums, while lower deductibles mean you will pay more each month in premiums.
Failure to Maintain Your Home May Result in Policy Denials
If you think your insurance provider will accept every insurance claim you make, think again. Companies deny claims all the time, leaving the homeowner to take care of the repair bills. Some situations may seem obvious such as if you were to purposefully break something. But the company may turn you down if the incident is a result of your lack of attention to household items and systems. For instance, if the water heater ruptures and causes a flood, your claim will be invalid if you knew the appliance needed repairs, but you ignored this.
Not all Weather and Natural Disaster Damage Is Covered
Few things could be more devastating to your home than Mother Nature’s fury. Severe damage could result from wind, hail, rain, and extreme weather conditions. What your agent may not make clear initially is that your policy won’t cover all of these incidents. Earthquakes and flooding usually won’t be part of a homeowners insurance policy. You’ll have to buy supplemental coverage to help with these events.
There are cases where insurance premiums will be more based on the location of the home. For instance, if your property is located on or near a coastline, river, lake, or ocean, expect a higher monthly bill. The chances are higher that you’ll make an insurance claim in these areas because of flood risks. You may have to purchase supplemental insurance for water damage coverage.
You should take the matter of selecting an insurance company seriously. Be sure to understand your policy, and don’t be afraid to ask your agent any questions on your mind.