3 Things To Know About Homeowners Insurance
If you are getting homeowner's insurance for the first time, it can be a confusing process. It's important to get coverage that is both sufficient and that fits within your budget. Before even finalizing your mortgage, many lenders require that you have homeowner's insurance in place. However, determine what you need can be overwhelming, especially when you add in the stress of purchasing a home. Here are three things that you should know if you are looking at getting homeowner's insurance for the first time.
Estimated Costs
The first thing that you should consider before getting a homeowner's insurance policy is the overall cost. It's something that should be factored in to your budget when you purchase your home. Rates can vary depending on potential natural hazards, the location of your home, and the value of your home. For most homeowners, the average homeowner's insurance premium ranges from $300 to $1,000. If you are looking at a home and want to estimate how much your policy may cost, a good rule of thumb is to divide the value of the home by 1,000 and then multiply by $3.50.
Make Sure You Have Enough Coverage
Another thing that you should know about homeowner's insurance is that your level of coverage can vary. It's important to have enough coverage for your needs in case disaster happens. Standard homeowner's insurance policies cover things like fire, hail damage, and lightning damage. Other natural disasters, such as flooding or earthquakes, may require additional coverage. If you have specific items within your home that you want protected, such as expensive jewelry, then you will likely have to add riders to your policy in order to get additional coverage. Liability insurance is also a key part of homeowner's insurance. Most policies offer at least $100,000 of coverage but it is recommended that you opt for more.
There Are Ways To Save
If you are getting homeowner's insurance for the first time, you may be unaware that there are ways for you to save on your policy. Shopping around and looking at different insurance companies may find you the same coverage at a lower rate. Another way you may be able to save on homeowner's insurance is by improving your credit score since some states allow that to be taken into consideration when determining your rates. Many insurance companies also offer discounts for making safety improvements to your home or not smoking.
Purchasing homeowner's insurance for the first time can feel overwhelming. It's important to estimate the cost and make sure that you are able to fit it into your budget before looking into policies. The goal is to strike a balance between sufficient coverage and affordable rates. The good news is that there are plenty of discounts and other ways to save on your homeowner's policy. Contact an agency, like Family Insurance Centers, for more help.
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