Homeowners Insurance 101: What You Need to Know
If you’re looking to purchase your first home or just need to evaluate your current homeowners policy, there are a few things you should know. Not all homeowners insurance policies are equal — depending upon your needs, you may have too much or not enough coverage. Take a look at the following information and review what you should always keep in mind in regards to homeowners insurance.
Amount of Coverage
When deciding on how much coverage you need, think about the cost to replace your existing home as if building a brand new one. Many homeowners who have lived in their home for several years typically lack coverage. The cost of building a home will continue to increase throughout the years, so it’s best to reevaluate every two or three years.
Major disasters aren’t that frequent. However, you’re more likely to have an issue with a broken water pipe, fallen tree, or home theft. Between Mother Nature and odd occurrences, you do need to protect yourself. How much you want to pay out of pocket becomes the question. In fact, a policy with a low deductible will cost you a lot more. You may be better off setting aside enough for your deductible just in case of an emergency. It will save you money in the long run.
Don’t Forget Your Personal Property
Make sure you also get enough coverage to replace any personal property that you have as well. It’s best to have a general idea of the larger items and electronics in your home. Jewelry and heirloom pieces may need to have separate policies, but it’s good to ask. Also, if you’re moving into a new home, you have the perfect opportunity to inventory your items per room. This is a great time to assign an estimated value and replacement cost. Plus, you need to know if your policy will give you actual cash value or replacement cost. The latter is best.
Get Several Quotes
While your lender may have a great referral for you, it’s best to obtain at least three quotes. Make certain that each company is quoting for the same coverage and deductibles. Also, look for online reviews. The best price in the world doesn’t matter if you can’t actually get service.
Ask for Discounts
Many insurance companies offer discounts for certain things like handling both your home and auto policy or an alarm system. It never hurts to ask.
For more of our perspective on this subject, read our recent blog, “Common Real Estate Terms and What They Mean”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.