Before you finalize your closing documents on a new home, you’ll need to go through the process of shopping for homeowners insurance. Nobody truly enjoys shopping for insurance, but it’s a necessary product for homeowners.
When you’re ready to start shopping for homeowners insurance, it’s best to know how to go about it. Here are some tips to help you find the right homeowners insurance for your specific needs.
Figure Out Your Needs
Before you start shopping for homeowners insurance, you need to know what you’re shopping for. You could simply search for recommendations, but you’d probably find about a thousand opinions without much clarity offered.
Instead, trust the experts. Dave Ramsey, a financial expert, suggests you get enough homeowner’s insurance to rebuild your home, replace your things, cover any injuries or damages on your property, and to reimburse you for living expenses after a loss of an insured home.
The amounts for each type of covers will vary from one person to another and from one home to another. These recommendations may be more than your mortgage company requires, but minimum coverage may not be enough if you suffer a loss.
Talk to Your Real Estate Agent
Along with figuring out the type of coverage you need, it’s best to talk to your real estate agent for a referral. A good real estate agent, like the agents at RedZone Realty Group, will be able to recommend the right insurance agent to work with you for your homeowner’s insurance.
Most real estate agents are well connected and know a good insurance agency to refer you to locally. This can help to save you time and money as a good insurance agency or broker will be able to find the right coverage for your needs when buying a new home.
Take the Time to Consider the Options
Not only should you compare multiple quotes to ensure you’re getting the best deal, but you should also consider local building codes and anything that may impact the replacement cost of your home.
A good insurance agent will be able to help you calculate the replacement cost. In addition, they will help to adjust your homeowner’s insurance anytime you make improvements or additions to your home.
Along with the cost to replace your home, make sure you take the time to calculate the replacement cost of your personal items. If you’re currently renting, you may have done this for your renter’s insurance, but you have to consider anything new you will be adding to your home.
If you’re moving from a one-bedroom apartment into a three-bedroom home, you’ll likely purchase new furniture and other items for your new home. This means the amount of coverage you had for your one-bedroom apartment will likely need to increase for your home. Shopping for homeowners insurance isn’t a fun task, but it’s necessary. You need to ensure you have the right protection in the event of a disaster destroying your home. Take the time to understand your policy to ensure you have the right coverage to protect your family and your home today and in the future.