Purchasing a home is a huge financial investment, so you want to keep it protected for as long as you own it. This is what homeowner’s insurance is for, but not all packages are created equal. The right type and amount of coverage are dictated by your personal circumstances, so we’ve put together four tips to help you make an informed decision.
- Determine how much coverage you need.
Your home must be insured for its replacement value instead of what you paid for. Insurance coverage is intended to compensate you for the cost of rebuilding the home if it is destroyed or irreparably damaged, and inflation may set in between the time you bought the house and the moment you need to use your insurance.
- Study the property’s claims history.
When you buy the home, ask for a report of its insurance claim history. These reports outline any previous claims that have been made involving the home, and can even alert you to potential problems that aren’t immediately apparent. Some types of earlier damage, such as flooding, could make insuring the home more expensive.
- Account for special circumstances.
In Florida, your typical homeowner’s insurance policy will protect the structure of the home and your personal property against losses due to fire, lightning strikes, and wind damage. Flood and sinkhole damage, however, is not included, so separate coverage will have to be taken out. When you live in an area that is prone to such disasters, taking out the necessary insurance can save you a lot of money and stress later on.
- Consider deductibles.
As your policy is created you will need to select your insurance deductible, which is how much you pay out of pocket when a claim needs to be made. If you opt for a higher deductible, your premium is lower, but you’re going to pay more before your insurance company covers any damage. Conversely, a lower deductible will result in higher premiums but you would pay less out of pocket in the event of a claim. Each option has advantages and disadvantages, so the choice you make should be based on your personal and financial situation.
Putting together the right homeowner’s insurance package calls for special attention to your property, needs, and budget. This blog provides a general guideline to get you started, but We Insure agent Rick Leal will give you the personalized attention and advice needed to properly protect your investment. For more information or to schedule a meeting, contact Rick today!