Buying Homeowner’s Insurance – Protecting Your Investment
by David Cohen, 2011-06-09
Buying a home is a huge step to take. Buying homeowner’s insurance is a lesser step, but it’s still important to make sure that you buy the right policy and buy insurance to protect your investment in your home. Even though it’s unlikely that there will be some catastrophe in your area, it’s unwise to take the risk and be left homeless in the event that something like that does happen. Homeowner’s insurance is expensive, but it’s worth it to know that you’re financially covered and will always have something to fall back on, even if something does happen to your home.
When buying homeowner’s insurance, you have to make sure that you get adequate coverage. You should have an estimator come to your home and evaluate it to make sure that you quote a solid value to the insurance company to make sure that you get compensated for the full value of your home in the event of a catastrophe and the total destruction of your home. It may be tempting to quote a lower value to try and save on your insurance premium, but it’s not worth risking your investment in your home just to save a little money.
You should also make sure that you know what’s included in your policy when buying homeowner’s insurance. You’ve got to make sure to see what’s covered and what isn’t and, if necessary, purchase additional insurance to cover things that you made need protection against that aren’t included in a basic policy. For example, if you live in California, you may want to purchase an additional earthquake insurance policy, since earthquakes are not covered by most traditional home insurance policies. Traditional insurance also typically excludes damage to homes done by floods, wars, and nuclear accidents, so you may want to make appropriate arrangements in case you stand to be affected by events like these.
If you’re thinking about buying homeowner’s insurance, you should collect no less than four estimates to compare to one another to make sure that you don’t pay too much for the insurance that you need. By comparing different policies and prices to each other, you’ll get a better picture of what kind of insurance is available to you, and what kind of insurance coverage you really need. The more you compare, the more likely it is that you’ll choose the insurance policy that provides the best value to you.