When you’re caught up in the process of buying a home, it’s easy to overlook homeowners insurance. However, it’s crucial not to underestimate its value. Picking the right policy can protect you from financial hardship in the event of a disaster. This guide will walk you through everything you need to know!
KEY TAKEAWAYS
Determining Homeowners Insurance Needs :
- Rebuild Cost: Multiply your home’s square footage by local building costs. Consult an agent or appraiser for accurate estimates.
- Personal Belongings: Include outdoor furniture, collectibles, and items in storage. Check the Insurance Information Institute for inventory tips.
- Detailed Info: Provide purchase dates and locations for high-value items.
- Replacement Costs: Factor in current replacement costs, not the original purchase price.
Lowering Homeowners Insurance Costs :
- Increase Deductible: Raising it from $500 to $1,000 could cut your premium by 25%.
- Home Upgrades: New roofs, storm-resistant windows, and security systems may qualify for discounts.
- Loyalty Discounts: Staying with the same insurer for 5-10 years can reduce premiums by 5-10%.
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