If you own a home, you need a good homeowner’s insurance policy to cover your financial losses if an unexpected event occurs that can damage or destroy your property. Understanding your policy and what it covers is very important and will help you tremendously if you ever need to file a claim. However, before you purchase a homeowners’ insurance policy, there are a few things you will have to consider. Here are some guidelines to help you purchase the right homeowners’ insurance coverage
How Much Insurance Coverage Will You Actually Require?
One of the first considerations when purchasing a homeowners’ policy is figuring out how much insurance you will need. You basically have two options. You can insure your home for its current market value or purchase enough coverage for its replacement. Odds are, if you insure your home for its current market value, you may not have enough money to rebuild it after a devastating loss. Insuring your home for its replacement cost will guarantee that you have enough money to rebuild your home, even with the higher cost of building materials.
Remember that while setting up your homeowners’ policy, your deductible amount will determine your actual premium amount. A higher monthly premium will mean a lower deductible, while a lower monthly premium will result in a much higher deductible. It may be worth paying a slightly higher monthly premium if it means less out-of-pocket expense when you have to file a claim.
Never buy the first policy you come across, especially if it appears unusually cheap. It is always a good strategy to compare different policies and coverages, compare their prices vs. the benefits they offer, and even compare different coverage options available in the same price range with the same insurance provider. You would also want to find an insurance professional you can trust if the worst happens and you are going through a difficult time. Finding the right insurance professional is just as important as finding the right homeowners’ policy.
What about Discounts?
There are several discounts you may be able to take advantage of when buying a homeowners’ insurance policy. Installing a professionally monitored security system, putting in outside lighting sources, and joining a neighborhood watch program may make you eligible for quality discounts. You may also get a lower rate if you plan on paying your premiums by the year instead of by the month.
Periodically Read and Review Your Policy Carefully
As your life changes, your families grow, and you move up the professional ladder. Reading and reviewing your policy every other year or so will allow you to adjust your policy to accommodate any changes in your family situation. Events like adding a room, getting new insulation for your home, or remodeling your house can drastically impact the price of your house and your insurance requirements. Such events are noteworthy and should be carefully documented. Evaluate these changes properly and alter your homeowners’ insurance plan to ensure that you have adequate coverage.
Are you looking to buy homeowners insurance in Portland, Oregon, or would you like your existing policy to be reviewed? If yes, then call and talk to our home insurance professionals at Action Insurance Group. Our team has several years of experience and can help you make wise decisions to help you get adequate coverage and remain financially secure.
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