27 Jul 2018

Things You Should Know About Homeowners Insurance

You get insurance for your health, you get insurance for your car, so it only makes sense that you get insurance for your home. Homes are significant investments, and it’s in your best interest to protect your assets in case something terrible happens to or in your home. 

Often, when you borrow money to buy a home, lenders will require you to buy homeowners insurance.

Looking for and buying a home can be a stressful process, so it’s not uncommon for home-buyers to easily overlook the details of homeowners insurance. Many homeowners don’t know what their plan includes, doesn’t include, or different ways they can save. If something happens to your home, you don’t want your homeowners insurance to surprise or “fail” you. Knowledge is power, so you should know the ins and outs of your policy.

For this article, our team at Montoya & Associates in Jacksonville, Florida, wanted to share some things you should know and think about homeowners insurance before purchasing it.

Tips to Consider When Purchasing Homeowners Insurance 

  • Compare coverage. Contact at least three or four different companies to discuss options. Compare these companies’ coverage, price, service, reviews. Talk to friends and family about a company they use, like, and trust. By comparing coverage, you will be able to make sure you’re not overpaying for anything.
  • Look for a plan with value – a plan that makes sense for you. Learn about what is included and what is not. Don’t just pick the cheapest plan for the sake of it being cheaper.
  • Find a level of coverage that makes sense for you. Never pay for more than what you need.
  • Make sure you understand all the details of your policy.
  • Find out what’s not included. This is just as important as what is included. If you have hurricane insurance, it may not cover flooding. Many policies don’t include earthquake damage.
  • Research what types of coverage you may need to purchase separately (flood, landslides, sinkholes, tornadoes, war, power failure, earthquakes) that are not part of the standard homeowners insurance.
  • Never be afraid to ask the insurance company or brokers questions about the policy.
  • Know about your insurer’s limitations on claims. Most likely, there is a limit/cap to how much they will pay on certain claims.
  • Figure out the replacement cost of your home, so you’ll receive the proper amount if the home is destroyed. Don’t purchase a policy whose coverage maximum is far less than the worth of your home.
  • Make sure your insurance liability costs can cover your assets. If there is an accident on your property with outside people, they can put a claim against you (medical and court costs), so you want to make sure your home/assets are protected.
  • Know what the policy’s deadline is to make a claim. If you wait too long, you may have to pay for repairs with your own money.
  • Ask your insurer about possible discounts. If you have things in your home to make it safer or improved (alarms, upgraded doors, and windows, smoke detectors), you may qualify for a discount on your policy. See if you can bundle your homeowners insurance with others (car or life) with the same company to save.
  • When you receive your homeowners policy, read it all, and make sure you understand it. Keep it in a safe place.
  • Each year, review your insurance to make sure you still have the right coverage, especially if you made changes to your home.

Looking for Homeowners Insurance

If you are buying a home, it’s the best time for you to get homeowners insurance. Homeowners insurance is a necessary evil. It’s frustrating paying it, but if something bad occurs, you will be financially thankful you had it.

Let our team at Montoya & Associates help you get a homeowners insurance plan that is right for you and your home. We have over 29 years of experience helping people with insurances and their finances. To get started, click our homeowners insurance page to learn more or get a no-obligation quote or call us at 800-965-5554.



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