Insuring one’s home is the most important aspect of home ownership. Events such as natural disasters and burglary can often have tremendous financial impacts. By learning how to purchase the right homeowners insurance policy, avoiding such financial losses should be possible in no time at all.

The most important aspect to evaluate when signing up for a policy is the current market value of your home. Hire a real estate inspector in order to give an official value when requesting a quote from the insurance company. It is important to focus only on the price of the home and not its accompanying lot. Some other aspects to consider are how far away your home is from the police or fire station, the age of the home and the current state of its electrical wiring and plumbing. The number of claims you have filed in the past five years will also affect the claim estimate.

Determine the appropriate deductible for your policy. Most homeowners insurance companies will agree to decrease your rate if you increase the deductible. According to About.com, “You can save money by having a higher deductible on your policy. Typically, insurance companies will start giving discounts at a $500 deductible and increase the discount as your deductible increases. Most companies offer deductibles up to $10,000. Be careful, however, because many mortgage companies will not allow you to exceed a $1,000 deductible, so check with your lender before opting for a higher deductible.” This may not be the best option for those who own their home through a lender.

Consider adding liability coverage to your policy. Although this coverage is often overlooked, it is essential to protect you from potentially disastrous financial consequences. Liability insurance will protect you from bodily injury and property damage that occurs to other people. An example of a covered incident could be someone slipping on ice while walking on the sidewalk of your property.

Apply for discounts. Installing a home security system, signing up for multiple policies under the same company and being over the age of 50 will often reduce the cost of a policy. Make sure to renew your policy every three years to assure adequate coverage for your current home value.

Please contact us if you have any questions about signing up for a homeowners insurance policy.