Find The Home Insurance That Suits You

It does not matter if you have a small or a big house, you would still need to get it insured. Choosing the right insurance plan may be tiring and confusing. That’s why you need to identify your needs and compare different insurance quotes. It is crucial to find the right balance so that you would not be under- or over-insured. Before you talk to an insurance specialist, here are some points you need to consider.

Don’t forget to do your homework before choosing an insurance plan:

  • First of all, educate yourself on your neighborhood conditions. Find out more about annual floods, wildfires, earthquakes and any other natural disasters;
  • Secondly, you need to define what kind of house you have (in terms of insurance categories)
  • Thirdly, you need to estimate your valuables, antique furniture and expensive electronics
  • Don’t forget to indicate any recent renovation works before you update your insurance plan.

Make a list of information that should be included in your insurance plan. For example, if your area suffers from regular hurricanes and landslides, make sure you include it in your insurance plan. This way you will get the right insurance plan for your house.

Evaluate your needs with the following aspects:

Neighborhood Conditions

Both weather conditions and crime rates will affect your insurance plan. Obviously if you live in the area prone to natural disasters or a neighborhood with high crime level, you would have no choice but to pay more on your insurance. Therefore, you need to consider these aspects before you decide to buy a house.

Insurance companies will always calculate their risks in accordance with local conditions.

Home Type

Big spacious homes are more expensive and thus require a better insurance plan. Take into consideration your home’s value and how it will change in the next couple of years, as it would be more expensive to repair your home after a disastrous flood in the future.

Estimate your Valuables

Keep an inventory of your valuables. Don’t forget to include all the antique items in your insurance plan. Even though the value of electronic equipment would decrease in a couple of years, it would still cost you money to replace these items in case of burglary. Don’t undervalue your possessions!

If you renovated your home, or added some additional features to it, don’t forget to include these items into your insurance plan: the value of your property will increase accordingly. Keep in mind that insurance policies keep changing every couple of months, try updating your insurance plan on a yearly basis. It would prevent you from overspending and underestimating your property.

Only you will know what kind of insurance would work for you. You lived in your house for a while and know its flaws and weak spots. Don’t take a risk; find the right insurance plan to secure your property! Websites like homeinsurance.com will give you a chance to compare different insurance plans. Use this information to find the best homeowner’s insurance policy that would protect you from the common natural disasters and burglary – it might take some time, but it’s worth it!

 

This is a guest post by Lisa Peteres, an occasional guest-blogger and a full-time personal finance expert. If you have any questions, feel free to drop her a line in the comments below!

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Comments

  1. We need to make a list of our valuables, that is something that we have been slacking with.

  2. Definitely. It is a bit of a hassle, but it pays in the long run!

  3. I live in earthquake and fire country. Fires are less of a threat, living in the city, but still a factor. I finally got the most complete homeowner policy. It covers earthquakes, loss assessment, sufficient time to rebuild and more. All for a reasonable price and a good company.

  4. Local conditions seem to be the main concern for companies. My grandmother lives on the water and thus pays an insane amount (which turned out to be OK, after Hurricane Sandy).

    • It’s just like car insurance. Local statistics do play a major role in insurance premiums. The more likely the company is to have to pay out, the more you’ll have to pay in.

  5. Great and comprehensive post. Knowing your home is a must. I got sump pump insurance on my house and boy was that important when Hurricane Sandy knocked out my electric for 4 days and of course my pumps failed. Also, readers should consider umbrella policies to protect their assets and themselves.

  6. Thanks Steven. You’re right, it really pays to do some research before picking an insurance, and even those that are happy with their policies should consider looking for a better option!

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