5 Tips for Choosing the Right Home Insurance

If you’re a first-time home buyer, chances are the world of home insurance is a new one to you. It is a complicated thing to understand, with several different policies and coverages. Often is it also hard to understand how rates are determined and what you can do to lower the cost, especially when you are looking at several different policies at once. How will you ever choose the right policy with all the available options? Here are some tips to help you find the right coverage at the best price.

1. Understand Coverages – This might be the best first step, since it ultimately gets at the heart of the issue. Homeowner’s Insurance is there to protect your dwelling and property in the event of disasters, so you must decide how much and how extensively you want to be covered. Some policies will cover property at actual cash value, others at replacement cost. This can make a huge difference, in quality of coverage but also in monthly payments.
2. Get a Home Inspection – Knowing the current state of your home and any potential issues can help you address problems to lower your rates. If you have an old and decrepit roof, the insurance company will jack up the cost because they assume that you will be making a claim on the roof at some point because it needs to be repaired. An outside inspection can notify you of this issue so that you can fix it and lower your future rates.
3. Know Coverage Requirements – Some homeowner’s associations, neighborhoods, or even states will require a certain bare minimum level of coverage, so this can help you establish a baseline. Though some restrictions may not seem like a good thing, it can help you narrow down your options and realize good recommendations for coverage in your area.
4. Learn Claims History – Another helpful piece of information to help you choose home insurance is the history of insurance on the home you are moving into. Has there been a recurring theme, like water damage, throughout the claims made on the property? If so, you will want to make sure that you are adequately covered for that particular issue.
5. Understand Your Location – Though you may think that homeowner’s insurance rates are determined in a vacuum, this is not the case. Location plays a huge factor in determining the cost of different coverages. For example, if your home lies at a slight decline in the land around it, you will be at a greater risk of flooding. Or, if you live in a neighborhood with high crime rates and frequent thefts, you will want to make sure you have enough coverage for all your valuables.

As you can see from this basic list, there are numerous factors to consider when you search for home insurance. But, this list is a good start and can help you determine what exactly you need. What is even more helpful is sitting down with an experienced, thoughtful insurance agent who can walk you through the intricacies of homeowner’s insurance.

At Corkhill Insurance Agency, service is our policy. We love to help people choose insurance policies for their first homes, and also give seasoned homeowner’s tips on how to save even more. Our goal is not to sell you any particular coverage, but to help you find exactly what you need. For a free quote, call us today at 407-898-8891.