Owning a home is the American dream. Even people who frequently relocate appreciate the satisfaction of being tied down to a property that builds equity. But purchasing a home, whether it’s your first or tenth, also means buying home insurance. With all the options and jargon, though, picking the right home insurance plan can get really daunting. To help you out, we’ve put together a few tips. Read on.
Get All the Facts
When you see a house you like, gather as much information as possible so that you can determine the potential insurance costs. The age of the plumbing, electrical, and other systems within the property, as well as the materials used to construct the home, can affect premiums. For instance, less flammable roofing material can give you an insurance break, especially if you live in a part of the country that is susceptible to fire damage.
Keep Geography in Mind
Where you reside can, in fact, have a huge impact on coverage availability and insurance premiums. Homeowners are likely to pay a lot more for insurance in areas that are prone to extreme weather events like hurricanes, wildfires, and earthquakes. According to the Insurance Information Institute, homeowners residing in Louisiana, Texas, and Florida pay the most for home insurance coverage.
Your premiums will also be affected by the neighborhood you pick. For instance, homes that are located close to a fire department may be less expensive to insure.
Pay for Floaters
Although a standard home insurance plan will cover the structure of your home as well as some of your personal assets and belongings, it may not provide complete coverage for possessions like, say, jewelry, artwork, and coin collections. If you own items that exceed your policy limits, you can get a personal articles floater to your coverage. Floaters usually have no deductible but cover a broader range of insurance claims.
Ask for Discounts
Home insurance companies offer discounts for numerous things. However, these discounts are usually not advertised. So, before you sign up for a policy, make sure to check if the insurance company can offer discounts for your situation.