Owning a home has long been a cornerstone of the American dream. Buying a home can be extremely overwhelming, causing first-time buyers, especially, to give minimal thought to the homeowners insurance process. Yet, if something happens to your home, homeowners insurance can make or break you.
To save yourself the trouble, it’s a good idea to start shopping for a homeowner policy as soon as your purchase offer is accepted. Cincinnati houses for sale offers a few tips about buying homeowners insurance that are designed to save you time and money.
Decide How Much Coverage You Need
The better your coverage, the less you will have to pay out of your own pocket if disaster strikes. In some cases, your lender decides how much coverage you need and may require you to buy a policy that covers at least the amount of the mortgage. It is important to note that the amount of coverage you buy for your house, contents and personal property will affect the price you pay.
Save Money With Higher Deductibles
As with auto insurance, you can save money by having a higher deductible on your policy. Often, insurance companies will start giving discounts at a $500 deductible and increase the discount as your deductible increases. Most companies offer deductibles up to $10,000. However, many mortgage companies will not allow you to exceed a $1,000 deductible, so check with your lender before opting for a higher deductible.
Check for Available Discounts
Make sure that you are getting all of the credits for which you are eligible. If you have an alarm system that reports to a central station ( such as Brinks or ADT), you may be eligible for a discount. If you are over 50, you may be eligible for another discount. Companies have different names for age preference policies, from senior discount to mature policyholder discount.
The most common discount is the multi-policy discount. This will save you money on your home and auto insurance. By combining the two policies with the same company, you are given a certain percentage discount on both. the percentage discounts vary among companies, so it’s best to shop around.
Read Your Policy Carefully
You should be aware that a home insurance policy is a legal contract. It is written that your rights and responsibilities as well as those of the insurance company are clearly stated. When you purchase home insurance, you will receive a policy. You should read that policy and make certain you understand its contents. Keep your policy in a safe place and know the name of your insurer.
Pick a good partner
Doing business with an insurance company you trust is important. Before purchasing insurance, review the company’s complaints record and rankings on customer satisfaction and financial security. Your state’s department of insurance website, and industry analyst companies such as J.D. Power or A.M. Best Company, are unbiased sources of information.