1. Understand what home insurance offers
It is important that you understand homeowners insurance when choosing your coverages.
Simple definition of Homeowners Insurance: An agreement to repair or replace your home and return your life to the way it was after a covered disaster/loss in return for a premium/payment.
Most standard homeowner insurance policies cover:
- The cost of rebuilding your home after a disaster
- Your contents inside the home in case of covered loss
- Liability coverage to pay medical bills if someone is injured on your property
- Living expenses if you have to leave your home after a disaster
Other homeowners’ insurance policies may also cover:
- Fire department fees in case of house fire
- Food spoilage after a long power outage
- Debris removal after covered loss
2. Explore your options
One of the important choices you will make when choosing a policy is the maximum insurance limit.
Your insurance limit is the maximum that the insurance company will pay you in the event of a covered loss.
New homeowners often consider the resale value of their homes when determining their insurance limits. However, you Not Guarantee the resale value of your home.
You want your insurance limit to cover the entire cost of rebuilding your home after a covered loss.
In addition to choosing your limits, you will also have optional coverages that you can add to your policy. These may include:
- Guaranteed Home Replacement Cost: Provides a complete replacement for your home should your coverage limit drop. This may happen due to unexpected changes in building materials and labor costs.
- Cost of replacing personal property: Pays you the cost of purchasing new contents regardless of resale value or lifetime in a covered loss event. Instead, standard coverage will pay you the monetary value of your contents at their expendable value.
- Equipment breakdown coverage: Covers a breakdown of all important home systems and major 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 starting with a local independent insurance agency, such as Bolder Insurance.
When you’re looking for the cheapest insurance option on the Internet, you’re most likely missing out on important details and coverage. Low price does not necessarily mean adequate coverage.
An independent local insurance agency, such as Bolder Insurance, represents many insurance companies. They can provide you with customized quotes from any of them based on your needs.
The agent will help you dig deeper and learn what is covered and what is not covered in every policy you consider. Their success also depends on the representation of quality insurance companies. Therefore, they are familiar with insurance companies that are known for their excellent customer service.
4. Compile your insurance policies for additional savings
Often, insurance companies offer multi-policy discounts because they sell multiple types of insurance. If you purchased more than one policy from the same insurance company, you may be eligible for policy discounts.
So, if you have the option of bundling your documents with one insurance company, it’s usually a good idea.
5. Remember to look ahead
Finally, remember that your home insurance needs may change over time. Your boldest insurance advisor is a great resource while making changes to your home.
As your home and family change, tell your agent. This will help you ensure that you still have the best coverage for your home.
Examples of these changes may include:
- Redesign or renovate parts of your home
- Changes for those who live in the house
- Changes in the amount of time you spend at home throughout the year
- Upgrade the contents of your home
- add deck
- pond digging
- Finish your basement
Another aspect of your home that may change over time is its contents. It’s a good idea to keep an updated home inventory to document the items in your home. Many free apps can help you capture information quickly.
Choosing the best homeowner insurance for your home doesn’t have to be difficult
Buying first home and homeowners insurance is not something that should be rushed. The advice of a local and independent insurance advisor in Boulder is a great way to ensure that your home is properly covered.
Disclaimer: Coverage analysis is in general terms and is superseded in all respects by insurance agreements, endorsements, exclusions, and policy terms and conditions. Some coverage described in this section may not be applicable in all states or may have to be modified to comply with applicable state law. Some coverages may have been removed or modified since this article was published. Please check with your local independent insurance agent for details.
This article is a tribute to Car Owners Insurance, a bolder insurance partner.
