Buying a home requires a huge financial commitment. It effectively ties down a portion of your income for years. Given those costs, you’ll want to make sure your investment is protected. That’s why picking a good homeowner’s insurance policy is a must. Take a look at some of the things you’ll need to factor in:
Location
The location of the home is a factor for many insurance providers. Those who live near staffed and fully functioning fire departments often net lower premiums. On the other hand, if your home is located near the beach, those killer views will net you killer premiums as well. And if the property is located near areas where burglaries or crimes are common, that’s going to mean higher insurance costs as well.
Coverage
Some people don’t add flood coverage to their policies, thinking they don’t need it. However, if you plan on living there for a long time, you might want to think about getting one. About 90 percent of all natural disasters in the country end up involving flooding and flood damage, says the Realtor. With the right policy in place, you can rest easy, knowing your property is protected.
Discounts
Don’t forget to ask your agent for discounts. Many insurance companies have discounts and offers but agents might not mention them, not unless you ask about them specifically. That’s why it’s wise to check out the company’s website and social media pages to look for details on discount offers. This way, you’ll know what to ask about.
Contract
Don’t sign anything unless you understand the terms and conditions of the homeowner’s insurance policy contract. Read through everything, chapter and verse. This might seem tedious but reading through the contract can help you pinpoint loopholes or terms that you might want to contest. Hiring a lawyer to review the contract with you is a good move as well.
