When shopping for homeowners insurance, it might be instinctual to simply choose the lowest premium presented. This can be especially true when shopping for insurance at the same time as buying a new home! With everything else that is going into the process, homeowner’s insurance seems like one more thing to sign off on and move on. Whether you are buying a home or simply looking for a new policy, it’s a good idea to slow down and take a look at your policy before you accept it. If you don't take your time when shopping for homeowner's insurance, it can lead to errors that can cause additional premiums due to uncovered claims.
A Trusted Agent
We always recommend that you work with an insurance professional that you know and trust. You can purchase insurance from your mortgage company or 1-800 numbers, but we have found that people are most satisfied when they work with a local, licensed, independent, insurance professional that works with them one on one. When it comes to protecting your largest financial investment, you will want to work with someone you know and trust.
Look At The Replacement Cost Calculations
The replacement cost is the estimated cost of building materials and labor to rebuild and repair your home. And an accurate replacement cost calculation depends on accurate information about your home. Most companies will use information about your home gathered from the county property appraiser website. Without getting more detailed information from you, there may be errors in the Replacement Cost calculator. Look for errors, such as listing the wrong type of flooring (is it hardwood or laminate?), errors in the number of bedrooms or bathrooms, and missing special items such as a library or jacuzzi tub. Always ask for a copy of the Replacement Cost Estimate (RCE) to check for accuracy.
Cover Your Property
Something additional to consider is the value of your personal possessions that you keep in your home. This is something that is often overlooked when shopping for homeowner’s insurance because the focus is on the house and not the things inside it. You will also want to make sure you have appropriate coverage for special items, such as jewelry and antiques!
Look Closely at the Policy
Homeowners insurance policies include many separate coverage limits, deductibles, endorsements (options), and credits. Be sure to review each item in the policy to make sure you fully understand what coverages you have.
Accuracy is the key to making sure your home and belongings are properly insured. Take the time to review the Replacement Cost Estimate, your personal possessions coverage, and look closely at the policy. And of course, work with someone you know and trust.
Interested in reviewing your policy and coverages? Be sure to contact us today!