1. Understand what Homeowners Insurance provides
It is important to understand home insurance when choosing your insurance policies.
A simple definition of home insurance: an agreement to repair or replace your home and put your life back to where it was after a disaster / loss covered in exchange for a premium / payment.
Most common home insurance policies cover:
- The cost of rebuilding your home after a disaster
- Your contents inside the home in case of loss covered
- Liability to pay medical bills if someone is injured on your property
- Cost of living if you have to leave your home after a disaster
Other homeowners’ insurance can also cover:
- The fire brigade prosecutes in case of fire in the house
- Food spoilage after a long power outage
- Debris removal after a covered loss
Explore your options
One of the important choices you will make when choosing an insurance policy is your insurance limit.
Your insurance limit is the highest that your insurance company will pay you in the event of a covered loss.
New homeowners will often consider the resale value of their home when determining their insurance limits. But it̵
You want your insurance limit to cover the cost of completely rebuilding your home after a covered loss.
In addition to choosing your limits, you also have optional insurance policies that you can add to your insurance. These may include:
- Guaranteed replacement cost: Provides full compensation for your home in the event that your coverage limit is too low. This can occur due to unforeseen changes in building materials and labor costs.
- Reimbursement cost for personal property: Pays you the cost of buying new content regardless of resale value or age in the event of a covered loss. Alternatively, the standard coverage will pay you the cash value of your content at their depreciated value.
- Equipment breakdown coverage: Covers the breakdown of all your important home systems and personal appliances. For example, air conditioning systems, ovens, compressors, laptops, televisions, household appliances and water heaters
3. Choose the right insurance company
Your next step is to choose the right insurance company. We recommend that you start with a local independent insurance agency, such as Bolder Insurance.
When you are looking for the cheapest insurance option online, you are most likely missing important details and coverages. A low price does not necessarily mean adequate coverage.
A local, independent insurance agency, such as Bolder Insurance, represents many insurance companies. They can give you personal quotes from any of them based on your needs.
An agent will help you dig deeper and find out exactly what is and is not covered by every insurance policy you are considering. Their success is also dependent on the fact that they represent quality assurance companies. So they are very familiar with insurance companies known for superior customer service.
Combine your insurance policies for extra savings
Insurance companies often offer discounts with several insurances because they sell several types of insurance. If you buy more than one insurance from the same insurance company, you can qualify for insurance discounts.
So if you have the opportunity to combine your insurance with an insurance company, it is usually a good idea.
5. Remember to look ahead
Finally, keep in mind that your home insurance needs may change over time. Your Bolder Insurance advisor is a great resource in case of changes to your home.
When your home and family change, tell your agent. This will help ensure that you still have the best coverage for your home.
Examples of these changes can be:
- To rebuild or renovate parts of your home
- Changes in who lives in the home
- Changes in how much time you spend at home during the year
- Upgrading the contents of your home
- Adds a deck of cards
- Digging a pool
- Finish your basement
Another aspect of your home that can change over time is the content inside. It is a good idea to keep an up-to-date home inventory to document the items in your home. Several free apps can help you quickly capture the information.
Choosing the best home insurance for your home does not have to be difficult
Buying your first home and house insurance is nothing to rush through. The advice of your local, independent Bolder Insurance advisor is a great way to ensure your home is properly covered.
Disclaimer: The analysis of the coverage is in general terms and is replaced in all respects by the insurance contracts, recommendations, exceptions, terms and conditions of the insurance. Some of the coverage mentioned in this material may not be applicable in all states or may need to be modified to comply with applicable state laws. Some covers may have been removed or modified since the publication of this material. Contact your local Independent Bolder Insurance Agent for more information.
This article is a compliment from Auto-Owners Insurance, a Bolder Insurance partner.