Purchasing a new home opens the door to exciting opportunities and experiences, but before you hold those keys, there are many pragmatic details to cover. At the top of the list is selecting the right home insurance for your new townhome, or new single-family home—a task that can seem daunting, if not overwhelming.
With all of the paperwork required for the closing process, the last thing you want to do is spend your time on a lengthy search to compare policies. After all, with so many carriers to select from—and even more confusing terms and riders—how can you be sure what coverage is best for you?
How do you know with certainty that your new home investment will be protected? By doing some research and knowing what questions to ask, you’ll be on the right track. Here are four tips for selecting the right home insurance coverage.
Compare and Contrast
One of the most important steps in the insurance selection process is to compare and contrast your options. As this article on Zillow points out, you have more information when you shop around. While your personal credit standing will affect the rates you’re quoted for your new home, what you may not realize is that each insurance carrier has its own formula for assessing its premiums. By comparing and contrasting at least three different companies, you can see the price differences and make more informed choices. Many large insurance companies, such as Allstate, allow you to secure a quote online for a new single family home or new townhome. There are also insurance aggregators like HomeInsurance.com that will provide you with multiple quotes at once. (A quick visit here will give you a snapshot of price quotes by state.)
Bundle Up
When you’re putting your list of possible carrier together, one of the companies on your list should be the one that handles your auto insurance. Oftentimes you can get a discount if you bundle your auto and new home insurance on the same policy.
Talk to an Expert
Independent insurance agents work with many different carriers, and as such, their goal is to find the one that works best for you. When you talk to the independent agent, you can streamline the process by having the answers to the following questions ready: type of property ( new townhome, new single-family home), number of residents, square footage, type of siding, type of roof, number of fireplaces, number of stories, if your home has an alarm, if your alarm is monitored and the approximate value of the personal property you want to protect in case of loss.
Be Prepared to Interview the Carrier
Whether you’re talking with an independent agent or one associated with a particular carrier, there are specific questions you should be prepared to ask (and write down the answers so you don’t forget or confuse the details). You don’t want to make any assumptions that could prove costly later. Some of the questions we recommend you ask are:
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What is included in the policy? (There is coverage for just the new home dwelling—the actual housing structure—and there is also coverage for personal property and people.)
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What are the limits for coverage on personal property?
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What is the liability coverage?
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What is the loss of use coverage?
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What coverage do you offer for flooding and weather-related issues?
For a great checklist to follow, visit HelpInsure.com.
Selecting the right insurance policy not only gives you peace of mind today, but will help you get back what you had in the case of a loss. Spending time upfront will save you hassle later on, and free up your days to enjoy your new home to the fullest.
