Summit Insurance Advisors
by Michael Harbron on Sep 18, 2019
Buying a house is one of the largest financial commitments you will ever make. Having a homeowners insurance policy that accurately caters to your needs is key, and sometimes it’s not easy to determine what might be best for you. How much coverage do you need? What’s the best way to compare options? Are there discounts available? Here are five steps for finding the right homeowners insurance.
1. Know Your Home Inside and Out
Knowing every little detail about your home and the current condition it is in can help clue you in to determine what type of homeowners insurance policy is best for you. To help with this, ask the seller for a claims history report to discover any previous damage to the home from incidents like flooding, fires, and more. It’s imperative that you know every aspect possible about your home – after all, it’s much more difficult to comprehensively cover something that you don’t know much about! Be aware that some homes that carry certain risk factors, such as age, old electrical wiring, a history of mold, and those in flood plains may be more challenging to cover and oftentimes, coverage that is found can be a little more expensive. However, in the event that something should happen to your home, the small extra cost is always well worth it.
In addition, your career may influence the type of homeowners coverage you need; if you work from home and own a good number of computers and mobile devices, you’ll want to be sure those are listed in your policy and covered. If you are a photographer with thousands of dollars of equipment in your home, you’ll need extra coverage for that equipment.
2. Take Advantage of Discounts
Many insurance companies in Arizona offer discounts on homeowners insurance for behavior that lowers risk. When a home is protected in certain ways, the risk for burglary or extensive damage from a fire, for example, is much lower. This means installing burglar alarms, storm shelters, and smoke detectors – precautionary devices that can detect and deter trouble. This can very well save you money in the long run with your home insurance premium.
3. Compare Deductibles
There is a point, as you begin building your policy, where you can determine what your homeowners insurance deductibles are. Deciding whether you want to pay a higher or lower deductible is up to you, but there are definite pros and cons worth looking at.
If you decide to go with a lower deductible, your monthly premium would be higher than it would be with a higher deductible amount. In the event of a claim, you would pay less out of pocket before insurance covers losses. Just the opposite is true if you opt to go with a higher deductible. With a higher deductible, your monthly premiums may be lower. You will pay more money out of pocket before insurance kicks in, but month-to-month, you’ll be paying less for premiums.
4. Consider the Location of Your Home
Where exactly your home is located will influence not only how much you pay for coverage, but it will also determine the type of insurance coverage you should get. For example, if you are in a location that is near to or within a large city, you might need extra coverage for protection against possible theft from your home. If you live in a condominium or other multi-family dwelling, you may need more coverage for your personal belongings and electronics in the event of a fire – the risk of fire increases in multi-family dwellings simply because there are more people in a building.
The geographic location of your home plays a large part in determining what kind of coverage you’ll want from various optional policy riders, as well. Someone who lives in a location that is prone to flooding, for example, will want to have additional flood insurance as part of their policy. Someone in the desert or in a location that is at a high altitude, however, wouldn’t need flood insurance as part of their homeowners plan. Sometimes, homes that are located near police stations or fire stations can have lower premiums, too, in comparison with homes that are out in the country, 20 miles from the nearest emergency station.
5. Go Online
Thanks to the Internet, there is tons of information available on how to pick the best policy to protect your home. Do your due diligence and research your options; learn everything you can about your home so that you’re sure to choose the best coverages available in the event the unthinkable happens. You no longer have to personally visit various insurance agencies just to learn what their rates and options are; when the time comes to actually determine what homeowners insurance policy to choose you will have, all the information you could ever need can be found online for your reference.
Homeowners insurance is one of the most important aspects of owning a house. Having a policy that accurately reflects your needs as a homeowner will save you time and money in the future. If you are looking for homeowners insurance in Arizona, contact us today for more information or any questions you may have.
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