How to Shop for Homeowners Insurance: Look Beyond the Premium
Buying a home comes with a long list of decisions. Homeowners insurance can sometimes feel like one more item to check off, but your home may be one of your largest financial investments. Price matters, but it shouldn’t be the only consideration.
Start With an Insurance Professional You Can Talk To
Homeowners insurance contains coverage limits, deductibles, endorsements, exclusions, and other provisions that may not be obvious from a premium comparison. Work with an insurance professional who can explain differences in plain English.
Understand Dwelling Replacement Cost
One of the most important concepts is the amount of insurance carried on the dwelling. The cost of rebuilding the house is not necessarily the same as what you paid for it or its real estate market value.
Make Sure the Property Information Is Accurate
An insurance estimate is only as useful as the information used to prepare it. Review details such as size, construction characteristics, bathrooms, interior finishes, and significant features, and correct inaccuracies.
Don’t Forget What’s Inside the House
Furniture, clothing, electronics, appliances, household goods, and other possessions can represent a significant investment. Consider a home inventory and discuss particularly valuable belongings with your agent separately.
Compare Deductibles
When one quote is substantially less expensive, look at the deductibles. A higher deductible can reduce premium, but it also means assuming more financial responsibility when an applicable covered loss occurs.
Compare Coverage, Not Just Price
A homeowners policy can contain far more than a dwelling limit and deductible. Compare limits, deductibles, endorsements, and coverage provisions. The goal isn’t simply to find the lowest number, but to understand what you’re getting for the price.
Review Your Homeowners Insurance After You Buy It
Renovations, additions, valuable purchases, and other changes may affect the protection you need. Review your policy periodically after you buy the home.
Accuracy Matters When Insuring Your Home
Accuracy is essential to properly insuring both the home and the belongings inside it. Take time to understand what you’re purchasing rather than rushing through the process.
Have Questions?
Oberryman Insurance Agency can help you review your property insurance and understand your coverage options. If you live in Northern Virginia or elsewhere in Virginia, Maryland, or Washington, D.C., contact Oberryman Insurance Agency to discuss your insurance needs or request a quote or coverage review.
Insurance coverage, eligibility, limits, deductibles, exclusions, endorsements, and availability vary by insurance company, policy, property, state, and individual circumstances. This article is provided for general informational purposes and is not intended to modify or replace the terms and conditions of an insurance policy. Please refer to the applicable policy and contact Oberryman Insurance Agency to discuss your specific insurance needs.
