Purchasing a new home is probably the most important investment you’ll make in your lifetime. However, getting home insurance to protect it is a close second.
With the weighted average of property damage and liability claims (between 2013 and 2017) in the US amounting to $12,474, you’ll want to ensure that you get the best home insurance policy out there.
Here are three things to keep in mind.
Replacement Value Insurance
Your insurance policy should enable you to replace all the items you lose in the event of an incident. That’s why you must ensure that your insurance policy clearly covers your home and its contents with replacement-value insurance.
Moreover, your insurance company should offer extended-replacement-value insurance on your home. This will cover 100 percent of your home’s value, as well as a percentage that will support rebuilding your home.
When disaster strikes, you don’t want to be paying out of your own pocket to cover your losses. Pick an insurance policy after comparing the coverage options, deductibles, and rates of at least two or three companies.
Consider the size of your deductible when making your decision. As a rule of thumb, choose the highest deductible your budget allows, because this will help you to save money year after year. Moreover, it’ll keep your costs down by encouraging insurance usage only when completely necessary.
Getting on Top of the Claims Process
Knowing exactly how claims are handled under various policies is crucial if you want to recover from a loss. That’s why you must make sure that the agent explains the claims process to you thoroughly. When the time comes for them to write you a check, you don’t want to end up being shortchanged.
Clarify whether you’ll receive the entirety of the claim upfront. If not, what fraction of the claim will you receive? Ask whether the company limits payment to only the things that you replaced, or if it pays for everything lost. Moreover, what is the timetable for the replacement?
It’s imperative that you understand all of this before deciding on a home insurance policy.
With staff that has over 50 years of combined experience in the area, we ensure that buying home insurance is as smooth and stress-free as possible.