How to choose your home insurance policy

Your home insurance is a big investment and the one area you don't won't to skimp on in order to save on home-owning costs.

Your home is probably your biggest asset, and for that reason you should do what you can to make sure that in the event of any disaster you’ll be covered for the costs of repair or replacement. Your home insurance should do all this, and if you’re overwhelmed on how to even begin, we have a checklist to help you get started.

Decide on the coverage you want

The first place to start is to decide how much you want your insurance company to cover in the case of an accident. Obviously, the more coverage you want, the more it will cost you. Most policies group different types of coverage as a package, and offer you different packages to choose from. So things like the house itself, its contents, and loss of use are all included in one policy. A good insurance agent will work with you to figure out what the best coverage is with you, without trying to scare you into buying more than you need.

Compare deductibles

Your deductible is how much you’re going to pay out-of-pocket each time you file a claim. The lower your deductible, the more expensive your policy is going to be. This may tempt you to get an inexpensive policy with a really high deductible, but ask yourself if it’s a price you’ll realistically be able to pay if something goes wrong. Try to aim for a balance between an affordable deductible and a reasonably priced policy.

Comparison shop

Once you know what you want your home insurance to include, do your research and find out what different insurance companies charge. Make sure you throw a wide net when searching for an insurance company; this means checking not only the Internet, but also asking friends and families for referrals, and of course, checking with the company that already insures your car. You aren’t just looking for the lowest price, you want to know about a company’s complaint record, which can be accessed through the National Association of Insurance Commissioners.

Ask about discounts

A lot of insurance companies will offer you a discount if you do things like keep fire extinguishers in your home, replace your roof, or combine insurances (for example, auto plus home). Some even offer discounts for people in the military, teachers, or senior citizens. Always be sure to ask your agent about available discounts; you may surprise yourself and find you’re eligible for something.

Your home insurance is a big investment and the one area you don’t won’t to skimp on in order to save on home-owning costs . However, by being a savvy comparison shopper and knowing what your options are, you can get a quality policy for a fair price. And most important? You get peace of mind knowing that in case anything happens, starting over again will always be possible.

Source: Morgue File