Mortgage lenders require homeowner's insurance, and you need to know what to consider and where to look. More importantly, you need to protect your home. Here are five great tips on selecting homeowner's insurance policies.
1. Where to Look
You can usually start via a Google search for insurance providers, or you can begin by asking for recommendations from trusted family and friends. If you have car insurance, then chances are they offer other types of insurance policies. If neither of these selections works for you, then you should reach out to a private insurance agent.
2. What to Consider
It's best to do research and compare quotes and check customer satisfaction ratings for each insurance company. Also, make sure they have a solid and stable financial history.
3. What You Might Need in General
It helps if you consider your home's worth and research your neighborhood market values. Most of all, you need to know how much it would cost to rebuild your home. Your home insurance agent can help with that assessment.
4. What You Might Need Based on Location
When evaluating your homeowner's insurance options, you need to think about where you live and whether or not to explore extended hazard coverage. That said, these are the common types of disasters to consider:
5. Keep in Mind There is a Difference Between a Home Insurance Policy and a Home Warranty
- Home Warranty: A home warranty will cover the repair and replacement costs regarding any failing appliances, such as: HVAC system, plumbing related issues, electrical system
- Homeowner's Insurance: Homeowner's insurance will cover common problems such as:
structural damage, theft, rain, explosions, heavy wind
Ultimately, do your homework when looking for quotes. Also, research your home value, possible repair costs, location, and residential market to assess your level of needed coverage. Explore other related types of insurance policies and consider purchasing a warranty for expensive home appliances.
Matthew Runfola is a professional real estate freelance writer at RunfolaWrites.com. He is passionate about all things real estate, marketing and content creation. Matthew is also a former U.S. Air Force veteran, and he enjoys helping real estate businesses tell their story. When he isn't writing, he enjoys watching Netflix and baseball games with his wife.