Homeowners Policy Concern

Homeowners Insurance
April 26, 2013

If you’re shopping around for a good homeowner’s insurance policy there are a lot of things to consider. Many times you’ll have to make compromises or trade-offs. When looking around, it’s a good idea to look at the whole perspective of your homeowner’s insurance needs and make adjustments if needed. We have broken down the top 3 major considerations people have when purchasing home insurance.

Higher Coverage VS Lower Cost

This one is typically the biggest dilemma homeowners will mill over in their minds when looking for the right hazard insurance policy. Obviously, the more coverage you purchase, the higher the premium costs will be on your insurance policy.  The first thing you need to establish when deciding which one to go with is how much coverage your home really needs.  Many times the coverage amount will not be up to you (if you have a mortgage).  Talk to your insurance agent to determine just how much insurance coverage you will need and go from there.

High Deductible VS Lower Premium on Your Policy

Many people have a tough time deciding which way they’d rather go on this one.  You can actually save a lot of money monthly if you go with the higher deductible route, but you better be sure to have enough in your savings account to cover the deductible in case something were to happen, or the whole policy wouldn’t be worth it.  You should never choose the higher deductible if you cannot easily pay for it if it comes time to pay a claim.  As always, you should go over your deductible/premium options with your insurance agent before you just accept the offer they give you.

Other Coverages

Most people don’t realize that many basic homeowner’s insurance policies do not cover everything and that optional coverages can be purchased for other situations.  It’s always a good idea to explore additional options for coverage with your insurance agent especially if your home is unique or if you have many valuables that would exceed the current amount of coverage your policy has (if you have expensive electronics, jewelry, artwork, collectibles, etc.). Also, if you have a trampoline, pool, a pet, or live by water it is a good idea to consider purchasing additional liability insurance.