If you're like many people, your house is the biggest financial investment you will ever make. That's why you need to protect that investment with a solid home insurance policy. There are so many companies out there that it can be hard to know what to focus on when buying a policy, but here are some things you should consider.
Whether the Land is Covered in the Policy
Some insurance companies make an attempt to insure your house and the land on your property. However, in most cases, there is no need for an insurance policy to cover land; if something happens to the house, the land is not affected and another home can be built on it. Therefore, avoid policies that insure the land around your home.
The Value of Your Belongings
While every insurance company will offer you a certain amount for your belongings, it is a good idea to go through your home and take inventory of what you own. You may find that a basic policy will not be sufficient coverage to replace everything you own.
If you have a lot of high-ticket items, it may be worth it to have additional coverage or riders on your policy that will help you if something should ever happen to your house.
Flood and Earthquake Insurance
You might not realize it, but many home insurance companies do not offer flood or earthquake insurance. Depending on where you live, it may be a good idea to purchase these kinds of policies separately.
Look for home insurance carriers that can offer you discounts because of features you already have in your home. For instance, if your home is equipped with an alarm system, you may be eligible for a discount. You may also get a discount for things like smoke alarms, deadbolt locks, a new roof, and a new plumbing system. Before buying a policy, get an idea of which insurance company will offer you the most discounts for safety features and upgrades.
Bundling Your Insurance
If you already have a car insurance policy or life insurance policy with a company you trust, investigate their home insurance offerings. Many companies will offer you a lower price if you carry more than one insurance policy with them, which is a practice called "bundling."
Remember the information in this article as you seek out a good home insurance policy. Work with a local insurance agent to find a suitable policy for you and your house.