When you’re looking to buy your first home in 2024 (well done, by the way!) you’ll invariably need to look at homeowners’ insurance, to help protect the dwelling and your belongings, in case an accident or emergency occurs.
However, it can be hard to know what you need to look for. Your mortgage advisor will be able to assist you but, when it comes to comparing policies, what’s the best option? Here, what you should look for in any home insurance policy will be explored.
The Coverage Options
Firstly, what does the insurance cover? Yes, it covers your home, but what specifically? You’ll find that independent insurance agents may offer different coverage options, which may include dwelling coverage, personal property coverage, liability coverage, and so on. The key here is to know what you want from your homeowner’s insurance policy and to ask questions if you’re not sure.
Policy Limits
It’s always best to ensure that any homeowners insurance policy that you take out has a policy limit that meets or exceeds the cost of having to rebuild your home, if the worst happens. You should also choose a policy that offers affordable premiums, as well as out-of-pocket costs that you can realistically manage in the event that you need to make a claim. Depending on where you live, you should assess if there are separate deductibles and costs for events that are truly catastrophic, such as earthquakes and hurricanes.
Climate and Disaster Coverage
This may sound odd, but not all homeowner’s insurance covers climate damage or natural disaster damage. It’s true! In 2024, there are more people than ever before who are worried about what the weather may do to their homes, so, make sure that any homeowners insurance that you buy covers floods, earthquakes, wildfires, and hurricanes, depending on where you live. Check the contracts and ask questions if you’re sure about the jargon the company is using to define these terms, as it’s better to be safe than sorry.
Good Price
It may be tempting to try and get the cheapest option for your homeowner’s insurance policy. However, this may not be ideal, so you should spend your time researching the average cost of homeowners’ insurance in your area for the type of house you have.
As a general rule, cheaper insurance doesn’t equate to better coverage, and can actually mean that there are more additional costs if an issue occurs with your home. So, work out how much you can afford to spend and go from there. It’s also worth looking at the reviews of insurance companies and reading the fine print before committing to anything.
Great Customer Service
The last thing you want in homeowners’ insurance is a company that doesn’t offer good customer service. So, when scoping for reputable companies, you need to assess the customer service aspect of the company’s reviews and see if the insurance company is open for client contact 24 hours a day, seven days a week. As odd as it sounds, some of these companies don’t operate on this system, which isn’t ideal if you come home from vacation to find that your house has flooded! Also, if you’re not sure how to make a home insurance claim, try to find a company that will help to break the process down for you.
