When it comes to homeowners insurance, knowing which policy is the best for your home and current financial background can be a challenge. Although the peace of mind bought through a typical homeowners insurance policy is worth a lot, it can be hard to know when you are either paying too much or even for the wrong type of coverage all together. By learning how to navigate through the typical rhetoric and fine print, insuring your home at a price that makes sense is doable.
You may be surprised to find that a typical home insurance policy only insures the value of your home, not of the entire property. According to About.com, “Most agents use a cost estimator to figure cost replacement estimates. This will ensure that your home is insured for the correct amount. Insurance companies do not insure dirt. If you buy a home that includes a large lot, do not be astonished when you receive an insurance policy for a lot less than what you paid for the home. This is because you are buying coverage for the home and not the land.”
In order to receive an accurate quote estimate from an insurance company, it may be necessary to have the value of your home examined. Comparing your home to other similar homes in your area on the market is a good way to get a close estimate of value. Hiring a professional inspector is a sure fire argument when working with any insurance company.
Inquire about any available discounts when working with any insurance companies. Most insurance companies won’t reveal applicable discounts unless you directly ask them. It is also important that once you sign up for a policy with a company that you update the policy at least two times a year. Frequently communicating with your insurance company helps keep you aware of any policy changes that may affect your coverage.
Take the time to contact us at Strategic Insurance Agency. If you have any questions about homeowners insurance.