Most people simply select a policy for homeowner’s insurance quickly when they are in the process of buying a home. With everything else that is going on at the time, homeowner’s insurance seems like just one more thing to sign off on and move on. Whether you are buying a home or simply looking for a new policy, it’s a good idea to slow down and take a look at your policy before you accept it. Plenty of errors can slip through the cracks if you don’t take your time when shopping for homeowner’s insurance.
A Trusted Agent
A lot of people simply allow the real estate agent or mortgage broker to handle finding the insurance policy. Usually they do know some good people, but do you really want someone you have never even spoken to insuring your biggest investment? If you already have an insurance agent for your auto coverage, give them a call and find out if they can quote your homeowner’s. This way you will have someone you know and trust handling it for you. If you don’t have an agent, ask for referrals and then make a few phone calls. It’s best to actually speak to the agent yourself before you hand over your business.
Look At The Replacement Cost Calculations
No, it’s not going to be what you paid for the house or even what it’s worth. The replacement cost is simply how much it would cost to rebuild your home from the ground up. And an accurate replacement cost calculation depends on accurate information about your home. Most companies will use information from the most recent appraisal of the home to gather this information. It’s still a good idea to ensure that it’s all accurate. Look for errors like listing the wrong type of flooring (is it hardwood or laminate?), errors in the number of bathrooms, and missing special items such as a wet bar or Jacuzzi tub.
Cover Your Property
What the agent can’t get from an appraisal is the value of the things you will be putting into the home. Be sure there is enough coverage for everything you own, including high value items like jewelry. This is something that is often overlooked when shopping for homeowner’s insurance because the focus is on the house and not the things inside it.
Accuracy is the key to a homeowner’s policy that covers everything you own properly, along with valuing your house appropriately. Take the time to shop around, look at the policy, and talk to people you trust. If you ever have a claim, you will be glad you did.