Finding a Home Insurance Policy that Protects
When disaster strikes, a home insurance policy protects you from losing everything. It is traumatic to see your home in ruins. Moving out of your house for weeks or months is stressful. Yet, with homeowners insurance, there is a silver lining.
Taking the right steps prepares you for the worst before it happens. This way you get back on your feet and into your home in no time. Here are 5 steps for choosing your homeowners’ insurance policy:
1. Find Your Policy
No home is the same, so go with the policy that is right for you. Here are 6 main Homeowners Insurance Policies to choose from. When reviewing them make sure to ask about riders needed to customize the policy so it covers what you want.
- HO-2 – Also known as a “named-peril” policy, only covers items listed in your policy. If a tree falls on your home and the falling tree is not stated in your policy, it is not covered.
- HO-3 – The HO-3 policy is a general plan that covers all risks to the building. This “open peril” policy covers everything unless it is specifically excluded. Your possessions are not included in this policy unless they are under a named peril.
- HO-5 – This policy is very similar to the HO-3 policy but expands. The policy includes your personal belongings. If a peril is not explicitly excluded, then it is covered in the HO-5 policy.
- HO-6 – HO-6 is a policy for owners of condominiums or co-ops. HO-6 works with the condo or cooperative’s master policy. The policy covers interior damage, and also covers temporary housing if your home is uninhabitable.
- HO-7 – Similar to HO-3, this policy is a general plan—but for mobile homes.
- HO-8 – Historic homes and landmarks usually get coverage through this policy because it is specifically designed for older homes.
These Policies Exist to Protect Your Home
Carefully go over which plan is best for you and your home while making sure to customize it to cover what needs protection. Talk to your insurance agent. Understand which policies cover restoration and reconstruction services. Ask under what circumstances policies cover restoration and reconstruction. It often depends on how the insurance company defines perils and which perils they cover. With this in hand, when that time comes, you are prepared.
2. Compare Prices
Before you decide on a home insurance policy, be sure to go over prices. There are many online tools that allow you to seek out the best insurance quotes.
When comparing homeowners insurance policies, have your mortgage statements prepared. Also, conduct a home inventory of your possessions. Include appliances, furniture, and so on. You will need an appraisal report and proof of any renovations. These items will help toward a more accurate quote when comparing insurance agents.
Instead of going with the first policy that seems to work, be sure to shop around. Look for a better deal for your homeowners’ insurance. You could end up saving up to $1,000 a year on your policy if you do the proper research.
3. Research the Company
When you get homeowners insurance, you put the future of your home in another person’s hands. Be careful about where you place your trust.
It is imperative that your insurance company is a legitimate company with honest prices. To verify this, visit your state department of insurance’s site. This way you research local prices ensuring that you only get coverage that you need at the right rate.
Also, do research on the company’s financials. Make sure that it is a reliable company that will be around for years. If not, look elsewhere. Review this information on the National Association of Insurance Commissioners site.
4. Seek out Deals!
Why stop where you are? Ask your agent about what deals you qualify for. Have good credit? Member of a homeowner’s association? Live in a gated community? If you said “Yes” to all 3, you just qualified for 3 discounts!
Be sure to get the coverage you deserve at the prices you can afford. Seek out the best options out there. Save more and gain more! You never know what aspect of your life could lead you to a great deal.
Ask insurance companies if they have any procedures in place for policy review. Will they let you know the above-updated discounts and other changes that may need a review? Not all agents will keep you abreast of changes that may need policy review. Down the road, this could save you money and help keep your policies up-to-date.
Now that you have researched your home insurance policy, you should be ready to sign the dotted line! When disaster strikes, prepare yourself with the right homeowners’ insurance. Not to mention, if your home has been harmed by a flood, fire, or tornado, give PuroClean a call at 405-731-4343. We provide 24/7 restoration services for homeowners like you.