There are many details that must be attended to when buying a house, and purchasing homeowners insurance is an important thing that must be considered carefully. There is no one-size-fits-all homeowners insurance policy, so you will need to take your time to find a policy that suits your unique needs and protects you financially. Continue reading to learn more about what you need to know when buying homeowners insurance:
Choose the Right Policy Size
It is not uncommon for homeowners to make the mistake of buying a policy that is equal to the market value of their home, not the actual cost to rebuild. There is no reasons to spend more than you have to when it comes to homeowners insurance-- just make sure that your policy is large enough to cover the cost to rebuild should your home be destroyed. A good rule of thumb is to choose a homeowners insurance policy that can cover the cost to rebuild and replace all of your belongings.
Know What Is Not Covered
A homeowners insurance policy does not automatically cover damage in all situations. In most cases, you will have to purchase a separate policy if you want coverage for damage caused by flooding due to weather or earthquake damage. If you live in an area prone to flooding or earthquakes, it is important to purchase these policies at the same time you buy your general homeowners insurance policy if you want to be protected.
Ask About Discounts
There are many ways to lower your homeowners insurance premiums, but you will have to be diligent about asking about discounts to find out if you qualify. Living near a fire station or having a fire hydrant can help lower your premium and so can installing a home security system and fire sprinklers. It is well worth it to spend some time on the phone with your homeowners insurance company to talk about the different discounts that may be available to you.
Create an Inventory
When you buy a new homeowners insurance policy, it is in your best interest to make an inventory of all of your belongings, preferably with photographs. When you purchase any new furniture, electronics, or appliances it is also a good idea to save your receipt. If you every need to make a claim on your insurance policy because your belongings are damaged or stolen, having an inventory can make the process much easier. For more information, check out a site like http://www.unitedsecurityagency.com.