Ensuring your home can be a stressful process if you don’t know how to identify the right policy. Most people think that choosing the right coverage is all about the price. But, that is just one factor to consider when looking for homeowners insurance. There are other elements you need to evaluate before making a decision. That’s why we have created a guide on how to choose home insurance.
Once you start looking for insurance policies, you will notice that there are different types of coverage. Also, depending on the provider you choose, you can get more benefits. To accomplish this, you need to learn everything about the basic homeowner’s coverage and how to boost your protection, depending on your situation.
Remember that all insurance policies will calculate your premium according to the age of your home, location and type of property. Further, factors such as the number of people living in your house and the potential hazards can also increase the cost of the policy. However, in this process, you need to remember that having protection is necessary. In case the is a fire or all your things are stolen, your homeowner’s insurance will reimburse you. This means, in the end, everything that matters is having the right coverage.
In the guide below, we will give you some tips about the process of selecting a policy for your property. But, also tell you what coverage you need to have protection in case of an unfortunate event. If you’re looking for top-quality coverage in Alberta, head over to Surex.
How to choose home insurance: The ultimate guide
The first thing you need to understand is that home insurance is made up of different policies, that combined, give you complete protection. Also, even though it is not mandated under the law to have homeowners insurance, most lenders will not approve your mortgage without one. In case you don’t own your home, there are other types of insurance policies you can acquire, to learn more about it, click here.
1. Prepare for the purchase
When you are getting ready to buy a home, you need to prepare financially and make sure you have a good credit score. This process will not only benefit your mortgage negotiation but also influence the price of your insurance. That’s why before you ask for policy quotes, you should take a look at your financial standing.
Further, as we mentioned above, different factors that can increase the price of your insurance. One of them is potential hazards and any previous damages to the property. If you don’t want to get caught up paying more in the future, it is essential to get a claims history report.
2. Getting all the basic coverage
It doesn’t matter which insurance company you choose, you should make sure you have all the basic coverage. There are four types of protection that your provider should offer. If you get a quote that is missing any of them, we recommend you to keep looking. In case, you don’t know which ones are the necessary policies, we are going to explain each one.
- Dwelling coverage
Dwelling coverage will cover the structure of your home, in case something happens, such as a fire. Keep in mind that this policy will also cover any structure that is attached to your home. In case you have a guest house or a detached shed, you will need to buy add-ons for your homeowner’s insurance.
- Personal Property
When you are looking for an insurance policy, it is important to check that the exterior and interior of your home are covered. That means having protection for all your personal property. Belongings such as furniture, clothing, electronics and silverware should be part of your insurance. If you have high-value items, there are ways to increase the coverage of your policy.
- Liability Coverage
In case someone gets injures in your home, the liability coverage will take care of all legal fees and medical expenses. Most people choose to have liability coverage of $1 million. This might seem like a lot of money, but you won’t have to worry in case of an accident.
- Additional Living Expenses
In the unfortunate event that your house is destroyed and you have nowhere to live, your insurance company will give you enough money to survive. Hotel bills, grocery shopping, new clothes, your provider will take care of everything.
3. Get estimates
To get the right insurance for your property, before asking for quotes, you should get estimates. You must know what is the actual cost of rebuilding your home and replacing all your personal belongings. You can hire a contractor that gives you an approximate estimate for the construction. To calculate the value of all your personal property, you will have to do an inventory. Today, several apps can help you with this task.
4. Asking for more coverage
Even though the dwelling coverage of your policy will protect the structure of your home, it has some exceptions. Natural disasters such as flooding or earthquakes are not included in basic policy protection. But, through private agents, you can get these policies. We recommend expanding your coverage, especially when there is a higher risk. For instance, if you live near the ocean or if your region has frequent earthquakes.
5. Lowering your premium
Some people don’t have enough money to pay a high premium every month, which leads them to reduce their coverage. However, there are ways to lower your premium and still have the same protection. You can bundle your policies, which means purchasing several insurance policies with the same company. Also, home improvements will reduce the amount you pay every month. You can replace your old pipes, install a security system or buy gas-leak detection sensors.
With this guide on how to choose home insurance, we are sure you will find the perfect policy for your home.
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