How To Choose the Best Home Insurance Policy

Written by Posted On Wednesday, 30 October 2019 13:46

If you are a homeowner, one of the most important things you can do to protect your investment is to get insurance coverage. Your mortgage provider may even require you to carry insurance on your property. When you initially search for insurance, you may feel overwhelmed by the details of providers, coverages, and policies. However, there are several things you can to narrow down the options and determine which policy is best for your home and unique circumstances. Here are some easy steps to follow to ensure you choose the right insurance.

1. Get Several Different Quotes

There are many things that can affect the cost of your home insurance coverage. Most insurers use slightly different algorithms to calculate the cost of your policy, so chances are that when you get a New York Homeowners Insurance Quote, the amount will vary between providers. Getting quotes from several different providers can help you understand how much it will cost to insure your home and allow you to find the best coverage at the lowest price. When you look through the quote, make sure to take into account all the factors, including deductibles, premiums, coverage limits, and details of the claims process.

2. See if You Qualify for Discounts

Many providers offer discounts that can reduce the overall cost of coverage. All the available discounts may not be included in the original quote, so you may want to ask each provider specifically if there are any additional discounts you can qualify for. Some may relate to your home itself; for example, you may qualify for a lower premium if your home has storm doors, a security system, or sensors to detect gas or water leaks. Other discounts may be available if you get both your home and auto insurance from the same provider. 

3. Research the Insurance Provider's Reputation

Choosing the insurer with the cheapest policy may not always be the best option. It's also important to choose a provider that offers excellent customer service and a quick, easy claims process. Reading reviews from past and current clients can help you understand how a potential insurance provider compares with competitors. Consumer reviews may help you learn which insurers handle claims quickly and give adequate damage estimates.

4. Determine Whether You Need Additional Coverage Options

Most home insurance policies are fairly similar in the types of standard coverage they provide. However, your circumstances may require you to get add-on options for certain issues. For example, the state where you live may require you to have additional coverage if you want to be able to file a claim for earthquake or hail damage. You could also consider getting valuables insurance if the standard coverage in your policy doesn't cover the dollar amount of your heirlooms or other possessions. You may also be able to get ordinance coverage that can help cover the cost of renovations if you have to bring your home up to local building codes.

5. Run the Numbers in Your Budget

The overall cost of a home insurance policy may be one of the most significant factors in your decision. However, it's a good idea to calculate several different costs when you are determining how a policy fits in your budget. For example, a high-deductible policy may have significantly lower monthly premiums than an option with a lower deductible. If your budget allows you to save toward an emergency fund that could help cover a higher deductible, that may be the best plan. However, if you know that large emergency repair costs would be financially burdensome, you may want to choose a policy with higher premiums and a lower deductible.

Choosing the best home insurance policy is about more than just picking the provider that offers the lowest quote. It's a good idea to get multiple quotes and research each provider to find out how whether existing clients are happy with the coverage. You may also need to determine if you want add-on coverage and whether you qualify for any discounts.

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Carol Evenson

Carol is a home renovation specialist with a background in organization and sales. She assists realtors with business management and growth.

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