Shopping for Homeowners Insurance

Insurance is not a commodity! It cannot simply be compared apples to apples, but rather each company and each policy can have major differences in coverage and in price.  When you build or buy a home, it is a major investment that should be protected with the right insurance policy, the right insurance company and the right insurance team. 

Consider the following when shopping for homeowners insurance:

1.) Choose the right company – before you start comparing policies, coverage, deductibles and endorsements, you can make a great decision by researching and choosing a reputable company! Last thing you need is a company who is financially troubled or has the highest complaint index in the industry! 

2.) Choose the right team – after you find a reputable company, now it’s time to find a great agency team to help you make the right decisions! Check Google reviews, ask your friends and neighbors and even check out social media!  Insurance agents are a dime a dozen, but great insurance agents are worth their weight in gold! They can be the difference between a great experience and just another insurance policy. 

3.) Choose the right policy – there are minor differences in homeowners policies and there are major differences.  One of the major differences can be what your policy actually covers.

a.All risk policies – typically cover any event that the policy doesn’t specifically exclude

VS.

b.Named peril policies – typically cover only the events listed in the policy

4.) Choose the right coverage – another major difference can be how your coverage applies to a specific loss

a.Replacement cost – in short, will pay to repair or rebuild your home based on current costs

b.Actual Cash Value – typically will cover the repairs or rebuild after reducing the amount payable by depreciation (usually based on age). 

5.) Get your discounts – you can usually save a ton of money by having your home and auto insurance together! If you are shopping around, make sure that both your home and auto are being placed with the same reputable company so you can receive the maximum amount of discounts!  

6.) Endorsements and Additional Coverage – you might have other unique home features, high value items such as jewelry, guns or artwork that will need additional consideration.  You can typically insure the high value items separately (and generally inexpensive) with a $0 deductible! Be sure you don’t overlook these options and endorsements to get the right coverage. 

7.) Flood Insurance – is not covered under your homeowners policy.  You should heavily consider this coverage even if you are not in a flood zone. 

Take your time and pick the right homeowners policy, the right insurance company and the right local team!