Everything You Need To Know About Homeowner Insurance

Are you thinking about getting homeowner's insurance? If you are purchasing a home and you want to know about home owner's insurance, you may want to read this article about understanding your insurance rate and other factors that come into place when you set up a home insurance policy.

Setting up a home insurance policy

A lot of times people don't realize that they will need home owner's insurance when they move from a rental to a home of their own, but the good news is that whether you are going into a standard type of apartment, a condo, co-op, single-family house or other type of dwelling, this is similar to renters insurance and there's no monthly premium for your payment. You would pay one time each year.

Picking a homeowners insurance company

First, be sure to call around to the different insurance companies. You want to find out whether or not you're going to go with a company like State Farm, or a different type of company like Allstate, Geico or one that your mortgage lender or development may tell you bout. They're all going to have different types of discounts and when you go to settlement, your realtor or mortgage lender or someone else may suggest a type of insurance that you can use or even a company that they know of. You don't have to necessarily use their particular homeowner's insurance company and you can find your own if you want to do a price comparison. They may only be telling you about their homeowner's insurance company that's in the area because maybe they will receive a small kickback when they recommend the company at your closing.

Estimating the value of your home's contents

If you're ready to sign up for homeowners insurance, there are a few key things that you need to know. For starters, when you call your new insurance company, they will ask a lot of questions about your apartment, co-op, condo single-family or multi-family dwelling. They will also ask questions about the types of items that you have so you need to have an estimated value on the items that you own. For example, if you have an idea that maybe you have $75,000 worth of merchandise but your grandmother's ring is $100,000, keep in mind that means that you have $175,000 worth of merchandise. You want to try to be as accurate as possible because if you have a claim and you're estimate is incorrect, you won't receive the money for the item.

If you have receipts for all of the items that you bought or if you know that you purchased them on your credit cards and you can keep track of this, it could help to substantiate how much you actually own or you can get an idea from looking online the value of your HDTV and so forth.

Your neighborhood and coverage amount

You may also want to factor in your insurance premium may be based on how much coverage you take out and also the area where you live. For example, you can take out a small policy but if you live in a very bad neighborhood, your insurance may be higher than someone who lives in an area that does not have a lot of break-ins or theft.

If you're looking for ways to get a discount on your homeowners insurance, then you may want to sign up for a security company like Sloman's Shield or ADT. By adding a security feature to your home, it can lower the rate on your insurance. Some people actually sign up for a security system to get the discount and they may shop for a security service sign up offer which is more savings!

Flood insurance is not included

Another area that you may want to factor in as it relates to your homeowners insurance is that flood insurance is not automatically included in your plan, so if you live in an area that is considered a flood zone, you may want to see if the agent brings it up. More than likely, they may not bring up flood insurance if you're in an area that is not considered a flood zone, but you should still ask for your own benefit. For example, if you live on the ground floor of an apartment, and there's a storm, there may be flood damage. It doesn't mean that you're in a flood zone, so you want to know about coverage for floods if you have problems. You should know about the building's history of floods and the area, as all of this information can help with changes in the weather.

As you shop for insurance, just be sure to get more than one quote and try to keep your deductible down. If you raise your deductible, while this may lower your yearly rate that you have to pay, you may have to pay more with a claim and having a higher deductible means you have to pay more out of pocket!

Ensure you're Insured - Stay Informed
Ensure you're Insured -
Stay Informed