Understanding Home Insurance Coverage

Whether you’re a first-time homebuyer or someone looking for different home insurance coverage on the house you’re already in, comparison shopping is key to getting the homeowners insurance at a fair price. After all, insurance adds to the monthly cost of home ownership and needs to fit comfortably within your overall budget. Here are some basics for anyone seeking home insurance coverage.

If You Have a Mortgage, Home Insurance is a Must

When you buy a new house, your lender will require home insurance to complete the loan. As long as your lender holds the title on your home (i.e., until you pay off your mortgage) insurance needs to stay current. You can change providers, but you need to keep your home insurance coverage up to date to protect your lender’s investment.

Homeowners Insurance Coverage Basics

Insurance policies involve painstaking detail that can leave anyone feeling lost. Here are some essentials to talk about with your SelectQuote agent:

  • Dwelling Coverage: Make sure your policy covers the cost of totally replacing your home.
  • Personal Property Coverage: Find out just how much the policy will cover to reimburse the cost of your personal possessions.
  • Liability Coverage: Understand how well-protected you are in the event of someone suing your for getting hurt while on your property. Lawsuits can be very expensive.
  • Other Structures Coverage: If you have a detached garage, a shed, or some other structure on your property, be sure it is included in your policy coverage.
  • Deductibles: A deductible is the amount of money you need to pay out-of-pocket before your insurance payout kicks in. Lower out-of-pocket payments tend to mean higher premiums. Higher out-of-pocket payments tend to mean lower premiums. Only you can decide which balance costs is right for your situation.
  • Policy Sub-Limits: Every home insurance policy has its limitations, especially when it comes to high-value items in your home. Such things as jewelry, fine art, rare coins, firearms and other high-dollar possessions will be covered, but only to a certain dollar amount. If the sub-limits in your policy don’t meet the value of your possessions, it is recommended you add a “rider” (or “endorsement”) to your policy that increases the coverage for those items. But know this will increase your monthly premiums.

When it’s Time to Shop for Home Insurance

Using the above list of topics as a start, figure out just how much coverage you need to cover the various items mentioned. Once you have that, contact SelectQuote to gather quotes for you.
When you contact your SelectQuote agent, have the following information handy:

  • Name of the homebuyer(s) and dates of birth
  • Address
  • Coverage start date
  • Details on the home – year built, total number of finished square feet, any detached structures on the property
  • Safety features – deadbolts, sprinklers, fire/smoke alarms, burglar alarm
  • Insurance history – most recent property insurance carrier and dates of coverage
  • Are you looking for additional protection – such as increased limit on technology or jewelry?

Let SelectQuote Shop for You

Home insurance can be complicated, but it doesn’t have to. Check with a licensed agent at SelectQuote for your free home insurance quote to make sure you don’t end up with a policy that sounds like a bargain but doesn’t give you all the coverage you need. When you give all your basic information to us, we’ll come back to you with multiple home insurance quotes from multiple reputable carriers.
Related Articles
Shopping for Homeowners Insurance? What You Need to Know
What are the Benefits of Bundling Home and Auto Insurance

1 Comment

  1. I like that you said that homeowners’ insurance can cover the cost of totally replacing a home if one decides to have a remodel. It might be ideal for me to have one since my home resides in an area that is prone to forest fires. Maybe I should find and ask an agent if this can protect my house from home calamities like that so I’ll know if I should get one.

Leave a Reply

%d bloggers like this: