All Insurance Professionals

Buying a new home is an exciting. Choosing a neighborhood, finding a property, and making an offer—it’s actually quite fun. Especially in this property market. We are in the greatest bear property market in U.S. history, and the market is absolutely flooded with homes for sale. This is great for new homebuyers.

One of the most important decisions you can make immediately after purchasing your home, however, is determining who you will use for homeowner insurance. In this article, we are going to discuss a few key points to consider when choosing an insurance provider.

Credibility

Your home is most likely your most expensive asset, by far. Therefore, do not skimp on insurance. If you financed the purchase of your new home, your lender will require that you have insurance, but do not simply search high and low for the cheapest insurer.

Remember, your homeowner insurance provider is who will cover you financially if there is a fire, burglary, natural disaster, etc that damages your home. When you actually need your insurance provider to help, you want to have peace of mind that they will be there. Thus, choose a provider with a credible reputation. Search for online forums and discussions between current and former clients and see how well the company responded to other people’s legitimate claims.

Raise Your Deductible

Consider raising your deductible as high as is comfortable for your personal financial situation. Although a higher deductible means you will have to fork over more cash in the case of a claim, a higher deductible can decrease your monthly payment substantially. The Insurance Information Institute is a non-profit organization and they estimate that raising your deductible from $500 to $1,000 can reduce your monthly payment by up to $25.

Bundle Your Insurance

Many providers will offer discounts if you have at least two policies with them. Shop around and check quotes at insurers who offer both car and home insurance to see if you can negotiate a discount.

Make Sure You Understand Your Coverage

This is an honest mistake that many people make. In the excitement of moving into a new home, many people will barely glance over the details of the contract agreement with their insurance provider. As in any contract, such as a business cash advance, always make sure that you fully understand the details. If you live in the Midwest, for example, you must make sure that your home is covered in case of tornado damage. Make sure you understand these terms and conditions of your agreement.