Buying a new home can be a fantastic investment -- both financially and for your family. Purchasing property is a great way to save money on housing in the long run, and also affords you a space to make memories with loved ones. However, because purchasing a new home is such a large investment, it can also be seen as a risk -- which is why it's important to purchase a homeowners insurance policy. Homeowners insurance
policies can protect your house and the people and belongings inside of it in case of accidental damage, injury or disaster. Here are some important things to know about your homeowners insurance policy when you decide to buy a new home, so you can be sure you are adequately covered.
It's Helpful to Shop Around
Before you decide to purchase a homeowners policy, it can be extremely helpful to shop around with different insurance companies and agents. You may get quoted different prices from different companies, and spending the time to speak with multiple companies could save you significant money in the long run. Another reason to shop around with different companies is to gauge customer service at the companies. If you ever do have to make a homeowners insurance claim, it can be a difficult and tiring process. You want to ensure that the person who works with you on your claim is kind, patient and helpful.
Homeowners Insurance Policies Don't Cover Everything
A homeowners insurance policy is usually pretty comprehensive. This means that it should cover damage to your property from things like storms, fires, robberies, vandalism and more. It should also give you liability coverage should anyone get injured in your home or on your property. However, there are some things that many insurance policies won't cover. Many policies won't cover flooding or water damage that comes from below -- particularly if you live in a flood-prone area. If you run a business out of your home, many homeowner's insurance policies won't cover areas or equipment solely dedicated to that business. Arm yourself with a knowledge of what your policy covers and what it does not so that you can purchase appropriate supplemental coverage, should you need it.
You Should Let Your Insurance Company Know if You Plan to Renovate
Even if you're buying a new home, you may want to make renovations or additions to the current structure. If you're planning to alter the home, it's important to let your insurance company know that from the get-go. If your renovations boost your home's value, your current insurance policy may become inadequate, which would leave you vulnerable in the case of damage or injury. Letting your insurance company know about upcoming changes to a home will ensure that your policy adequately covers everything you are adding.
You Can Lower Your Premiums With a Few Easy Steps
In many cases, there are some simple things you can do in your home to automatically lower your insurance premiums. Some common examples include adding deadbolt locks, having working smoke alarms, installing fire sprinklers, building a fence around a pool or putting in a burglar alarm system. Check with your insurance company about ways you can lower your insurance quote to save yourself money on the policy.