4 Things to Consider Before Purchasing Home Insurance
You are getting ready to buy a home, which means you need homeowners insurance. This much you know. If that is the extent of what you know, you are very possibly not going to get the right coverage you need for a price you can afford. Before signing a contract with a California home insurance company, you’ll want to educate yourself on the following:
#1 Make sure you’re comparing the same thing. Make sure you’re comparing the same types of coverage and deductibles. Basic coverage should include the replacement cost for the dwelling and the costs of replacing personal property inside the home. Make sure the covered perils are the same in the policies you’re comparing. If you’re not comparing the same coverage, one company can look a lot lower but then you’re in for a nasty surprise when you actually need to make a claim.
#2 Consider your deductible. The deductible is the amount you’d pay if a loss occurred and you filed a claim. When getting your quote, make sure you’re offered a deductible that you’re comfortable with. Deductibles are usually something like $1,000 or $1,500, but can be as high as $5,000 to $10,000 if you’re not reading the fine print. A high deductible should lower your premium, which is the amount you pay each month.
#3 Read exactly what perils are covered. Your homeowners insurance doesn’t cover you from anything and everything, unless it specifically says that. Check the fine print. “Named perils” coverage will list only what is covered, such as fire, smoke, lightning, and theft. If a peril isn’t listed, then it’s more than likely not covered. Most standard insurance policies don’t cover earthquakes, unless added as an additional rider for an additional premium. Flood insurance must also be purchased and added on separately, although it may be required by the lender if the home is in a higher risk flood zone.
#4 Take your time! This isn’t something to rush. When you’re shopping for a new house, you have plenty of things to shop for: a real estate agent, the house itself, a loan, appraiser, and more. Adding homeowners insurance to your list is a must! Start shopping for the right company and the perfect policy before the closing date so you can find the best rates and ensure proper coverage. You’ll want to contact insurers for custom quotes as soon as possible since you won’t actually know what your monthly mortgage payment will be without this number.
What do homeowners need to consider before they purchase home insurance? How can you make sure that you get the right coverage at the right price? Be sure to look into getting the coverage you need through Pronto Insurance. All you need to do is tell us a bit about yourself and your home so we can provide you with a free homeowners insurance rate quote. It could not be any easier!