It’s one of your bigger needs when buying a house, and it will sneak up on you fast – home insurance.
We put together some home insurance basics to get you get started and to help you make a better-informed decision.
Calculate How Much Coverage You Need
Calculate how much it would cost to rebuild your home (calculate the square footage by the local costs per square foot in your area). Include other structures on your property such as a garage, a pool, a shed, or a fence.
Take inventory of all your personal items, too. Dig up old receipts and start a list of all your belongings, including when you purchased them and how much you paid for them. Also document how much it would take to replace them altogether. If prices have gone up in the last couple years, you’ll need to prepare an amount that will cover the replacement cost, not the original price. Document everything you own with photos or videos. Walk around every room, and be sure to document all valuables. All of this will help you replace anything quickly if you have to file a claim.
Pick a Company or Agent (Shop Around!)
Insurance company websites can be a good starting point; however, you often can’t find all the details of specific coverage plans online. Many insurance companies recommend using a licensed insurance agent near you to help you find the right policy for your home.
Agents can help keep your insurance within the right price range as well as handpick a policy that fits your exact needs.
If you do choose to go through a company online, don’t forget to shop around. Many companies have estimators on their websites you can use to get an idea of your payment.
Another option that may help you save some money is bundling multiple policies, like home and auto.
Leave no stone unturned. This is a big decision!
But the great news is that once it’s made, you’ll sleep safe and sound knowing you’re covered.