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Homeowner Insurance Considerations

By May 28, 2014September 15th, 2023Insurance

If you’re ready to purchase a home, it’s time to think about insurance. It’s mandatory just about everywhere, and as much a part of the pride of homeownership as well-trimmed bushes and a painted front door.

However, insurance of any kind is complicated, and getting insurance on your home is no exception. If you’re looking to brave the world of homeownership and take the plunge, here are some considerations to think of before making a purchase:

  • Can you afford the deductable? Let’s face it: nobody ever expects a house fire, hurricane, tornado, earthquake, or anything else that could destroy part or all of a house to happen to them. It’s a good idea to set the deductable high enough so your monthly premiums are more attractive, but don’t set it so high that if something unfortunate did occur, you couldn’t afford it.
  • Consider home improvements. If you live in an urban area or in a place where crime is high, it might be a good idea to install a burglar alarm. Not only does this improve your chances of avoiding theft, it also may result in a discount on your homeowner’s insurance. However, if you live in an area where crime really isn’t a problem, there may be no discount at all, or the discount will be so minimal that getting the alarm isn’t worth it.
  • What are you responsible for? Many homeowner insurance policies will include stipulations that things are fixed as quickly as possible. For instance, if your ceiling starts to leak and you ignore it for a few months, it might become a serious problem. If the insurance company decides it could’ve been repaired when it was smaller and less expensive to do so, no payments may be forthcoming to you.
  • Do you know what’s excluded? If you live in a flood-prone area, you’re going to need flood insurance. Does your homeowner’s insurance cover that, or are you going to need a rider? If you live in dry California, make sure fire insurance is covered. Seattle? You definitely want earthquake coverage.
  • Do you need it? Since most mortgage companies or banks require it, the answer is, “Yes.” But shop around to other outlets if possible. You don’t always need the most expensive insurance with the highest coverage. When buying a home with cash, no mortgage insurance is needed, but homeowner’s coverage is always advisable.

To learn more about homeowner insurance coverage, contact us today!