7 Home Insurance Buying Tips

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When sorting through the various types of insurance you may need in life, home insurance should move right to the top of a list labeled “Important”. It is a necessity to protect your home, and the items therein, from any potential loss. So, here are some top tips for buying home insurance.

1.   Contact An Independent Agent

Independent agents like Aaron Miller Insurance are a great solution to make your search for the most suitable home insurance policy that much simpler. By working with an independent agent, you remove all the usual concerns of just how trustworthy the insurance is.

Independent agents can compare quotes on home insurance in almost no time at all. Aside from being time-saving, they allow you to gain some valuable insight into various insurance companies. They can also provide honest, open advice on everything from support and accessibility to claim submissions.

You should probably consider a few insurance providers at the very least before settling on one. Then, stick with your chosen provider for the long haul rather than flipping through options as more become available. This allows you to build up long-term relationships and potentially qualify for discounted premiums over time.

2.   Know Your Coverage

Home insurance generally exists in the categories of the interior (e.g. furniture) and exterior (e.g. building or structural damage) of your home. You should make sure you obtain all the specifics from your insurance company about what your coverage includes.

Some items, such as high-value jewelry, like your great-grandmother’s wedding ring, may better be insured through separate policies on their own.

3.   Know Your Home Value

Market value describes an amount a house is sold for on the market. You should be aware that market value is changeable. It goes through fluctuations different from when you first purchased a house due to inter-playing factors and the economic climate. Inflation, for instance, would affect the market value of the house. This is why getting an accurate picture of your home’s value is so important.

Market value can be a bit misleading and most often differs from the true value of your home. It could be the difference between you paying a lot more for your insurance and higher premiums if your home is overvalued for instance.

Market value is not to be confused with the replacement costs and can be more expensive based on the rates you may be covering as well. Your insurance company should be able to help you with an annual check on the valuation of your house and corresponding insurance premium.

7 Home Insurance Buying Tips

4.   Safety First

Interestingly, your insurance premiums payable on your home may change depending on the measures you may decide to invest in. To illustrate, one example is that of installing a security alarm system with a direct line to a security company or police department. Upping your home security can lower your premium a significant amount.

Other security additions you might want to consider, both for your own safety as well as a lower insurance charge, are smoke detectors and heavy locks.

5.   Policy Bundles

You should always be on the lookout for a discount and ways to reduce costs. One way this might be possible is through policy bundling. Some insurance providers may offer discounts if you purchase a home insurance package, alongside a health policy for instance.

6.   Think Long Term

Any additions, amendments, or wild, crazy ideas you might have to improve your home should be carefully considered. Aside from the aesthetic appeal of a wooden-frame garden shed, the higher premium on a wooden structure as a fire-risk possibility may not be worth it. Rather consider structures that are more durable and fire-safe if you want to add on to your home.

7.   Complete Mortgage Payments

The “PING” of that monthly debit order towards your mortgage may cause just one too many cringes each month. You are not alone in this. Mortgage repayments are a common occurrence. This monthly transaction is something you should focus on paying off to the best of your ability. Your insurance provider may lower your rates if you own your home.

When looking for home insurance, be sure to keep all of these tips in mind so that you don’t end up paying way more than you have to.