Buying a home is a considerable expense, and having good home insurance can help keep your investment well-protected from the financial effects of accidents and calamities. While looking for the lowest premiums could help you save money over time, it’s essential to choose homeowners insurance that provides optimum coverage. Insurance experts suggest shopping around and comparing quotes from a few companies before signing the dotted line. Read on for our top tips keep in mind while comparing homeowners insurance quotes.
Consider Coverage Type
Homeowners’ insurance policies can differ in what’s covered, with cheaper policies typically offering a lower coverage. While shortlisting homeowners insurance quotes, looking for the following coverage types could help.
Dwelling Coverage
If your home’s physical structure sustains damage by one of the perils included in the policy, dwelling coverage can help you cover repairs and rebuilding costs.
Personal Property
If you’re looking to protect your personal belongings inside your home, a policy covering damage or theft of personal property would be a great choice.
Other Structures
While most basic policies cover your home, they don’t include what’s not attached to the house. This coverage aims to protect structures on your property like sheds and fences.
Liability Coverage
This cover could help protect the homeowner from legal and medical expenses arising from a guest getting injured in their home.
Additional Living Expenses
Specific policies provide coverage for relocating and temporary accommodation if your home is damaged by a covered peril such as fire or floods.
Limits and Deductibles
When comparing policies and quotes, it’s beneficial to check that they include the same limits and deductibles. Keep in mind that insurers set limits to how much they will pay for a loss that’s covered. Opting for a higher limit could raise your monthly premium cost. Deductibles, on the other hand, have the opposite effect. Choosing coverage with a higher deductible could help you save hundreds of dollars annually in premiums. A higher deductible also means you’ll pay a considerably larger amount out of pocket if you make a claim.
Armed with the above information, you’ll know what to look for when comparing insurance quotes. Seeking advice from an insurance expert can help you select homeowner’s insurance that suits your needs.
