Tricks for Choosing the Right Home Insurance

If you’re in the process of purchasing a house, you’re probably tempted to pick any home insurance company available to make sure you’re quickly insured. The only problem with this approach is that you could find yourself settling with coverage that won’t meet your needs if you ever have to file a home insurance claim.

If something ever happens to your home, you want to make sure you’re properly compensated, which is why it’s important to take every step necessary to choose the right coverage. Don’t let the rush of securing a policy force you into the wrong choice. Instead, read these tricks for choosing the right homeowners insurance coverage.

Make Sure You Explore the Right Coverage Options

As you probably already know, there are tons of companies out there offering home owners insurance. This is great because it gives you a lot of options when it comes time to choose. But because your personal needs will be specific, you don’t want to just choose the cheapest coverage. Here are some factors to consider when exploring coverage options:

  • What you need to insure: When choosing your coverage, you want to make sure that it takes care of the basics, including covering your structure, lawn, vacant land that you own and family possessions in the event that there’s damage caused by bad weather, impact from vehicles, fall trees and branches, vandalism and even falling objects from aircraft. To know for sure that you’ll be properly insured, explore what home insurance generally covers.
  • Know what usually isn’t covered: One great way to choose the right coverage is to make sure you know what usually isn’t covered in homeowners insurance. Events like fires, earthquakes and floods are usually not included in coverage and have to be purchased separately. To be sure, however, take a look at what home insurance usually doesn’t cover.
  • Coverage amounts: Some companies will offer smaller coverage amounts than others for their price, so as you explore different options, make sure that your short-list has the coverage types and amounts that you need to financially protect your home based on its approximate value.

It’s also good to know that some companies will include coverage extras in their policies while some will require that you purchase home insurance riders. Whatever route you choose to take, you want to make sure that that your final selections include every type of coverage option you need.

Take Time to Narrow Down Companies

Another trick for choosing the right coverage for your home is taking time to narrow down the companies you like.

Of course, you’ve done a bit of company searching just by exploring the coverage options out there. Now that you’ve found some home insurance quotes that you like, it’s time to learn more about the home insurance companies offering the quotes. Here are ways to get this done:

  • Check their history: If you’re impressed with the prices and coverage options of a few companies then it’s good to check their history with your state’s Department of Insurance website. This site should determine the validity of the companies you’re looking at by offering details on customer complaints and more.
  • Check consumer review websites: Another option is to check websites that collect consumer reviews of various insurance companies. Consumers are always more than happy to rave about their good experiences and take companies down that have burned them. So check consumer sites to look for patterns in customer experiences.
  • Ask friends for recommendations: It’s also a good idea to ask friends, family and even acquaintances for recommendations. Chances are you know someone who has been with a specific company for many years and loves it.
  • Check with local contractors: One more trick to help you choose the right company is to check with local contractors to find out what insurance companies have the best reputations for paying out settlements after claims are made. Unless these contractors are somehow in cahoots with the companies, they’re probably going to be very honest when issuing advice.

Narrowing down home insurance companies is an extremely important step in the process. So be sure to explore as many as possible before making your final decision.

Look Into Home Insurance Brokers

Another option that you could consider is working with a home insurance broker. Brokers have inside knowledge of the insurance industry and could very well guide you to an insurance company that will not only fall within your price range, but also give you the coverage options and claims service you want.

But if you choose to take this route, it’s good to conduct background checks on the brokers. Even more, conduct background checks on any companies the broker recommends. This way, you increase your chances of acquiring coverage that will meet all of your expectations.

Consider the Multi-Policy Approach

A final trick to consider when choosing the right home insurance is looking at the one you’re already with for your auto or life insurance since many companies encourage their policyholders to purchase multiple types of insurance with them.

The benefit of taking this approach is that companies often offer a multi-policy discount that could decrease your home insurance rates. Not to mention that you could benefit from already knowing the company you’re working with and trusting them to take care of you.

Choosing the right home insurance isn’t a task that you want to rush simply because you know you need to insure your home. So before you sign on any dotted lines, take the steps necessary to ensure the company you choose will indeed be the one to financially protect your home for years to come.