Shopping for home insurance can feel overwhelming. You want to protect your greatest asset, but there are a lot of options. And of course, you need to consider your budget. Here is our expert advice with four tips to help you get the policy you need.
Understand Your Coverage Needs
First, you want to know how much coverage you really need. A brand new 3,500-square-foot home in a highly desirable area needs more insurance than a tiny fixer-upper in a developing neighborhood.
Likewise, your personal property must be covered too. You should take inventory of your appliances, furniture, electronics, clothing, sporting gear, and other belongings. If you lost them to a fire, storm, or theft, you want them covered at least the actual cash value (see below) or possibly at their replacement cost.
You may need additional coverage for valuables, such as jewelry, furs, precious metals, collectibles, firearms, artwork, or antiques. If you’re in an earthquake or flood risk area, you may also want additional protection for those disasters. For added liability coverage, you may wish to add umbrella insurance too.
Know How Premiums and Deductibles Work Together
Your home insurance deductible and premium work together. The cost of your insurance is the premium, while the amount you pay out of pocket when filing a claim is the deductible.
Typically, the higher your deductible, the more you can shave off your premium. Conversely, when your premium is high, you may be able to pay a lower deductible. At Hometown Insurance Agency, we work with you to find a good balance between the two that works for your budget.
Look at Policy Coverage Carefully
You’ve certainly heard the old adage “you get what you pay for.” This applies to home insurance…sometimes. Often, you can pay a bit more for a policy and get extras that are worth thousands more in an emergency.
For instance, many policies don’t cover water backup. Some don’t cover alternative living expenses either, which pays if you have to live elsewhere following a claim when your property has been rendered uninhabitable. So, buying a premium policy that covers these things can be well worth it.
Similarly, having a policy that reimburses for your property at replacement cost can be more expensive. But it gives you more protection than an actual cash value (ACV) policy, which depreciates the value of your belongings for wear and tear.
Be aware though that the most expensive home insurance isn’t automatically the best. It’s important to talk to your insurance agent about what’s right for you. Coverage needs to protect your property at a level that gives you peace of mind, plus it should be affordable for your budget.
Partner with an Independent Insurance Agent
Working with an independent insurance agent like Jessica Kharoubeh at Hometown Insurance Agency can make sure you get the right policy for your unique needs. Independent agents bring a host of benefits to finding coverage:
- We have a larger menu of insurance products to choose from, which gives you a better selection and a more tailored policy.
- You get more personalized, friendly service when shopping for insurance.
- Filing a claim is easier and less stressful, as you’re never just a number or an anonymous customer.
To get your questions about home insurance answered by a pro, call Hometown Insurance Agency at 918-221-7686 today. You can also start a quote any time online or message us via our website to let us know how we can help you.