Homeowners should have insurance, it’s as simple as that. Protecting your largest asset can prevent it from becoming a liability in unpredictable situations. How much coverage, which company, and the other small details will impact the price of your home insurance, so here are some things to take into consideration when looking.

1. Know the value of your home in today’s market. Every year, the value of your home will vary a bit. If it’s a significant increase, be sure to get added coverage for the air market value. Just because you purchased your home 10 years ago does not mean that it has the same value today. Ask yourself whether if you had to rebuild, or purchase a new home, would you be able to do so with the money that your current insurance policy offers?

2. Shop around. You do this for car insurance and should also for home insurance. Different companies offer better rates based on their criteria, so you may save big from just one phone call.

3. Ask for discounts. There are some brokers and agents that offer substantial discounts for having more than one insurance policy with them. For example, car, life and home equates to large savings in your premiums. Don’t waste your money by not asking, it could save you hundreds of dollars.

4. If you have a company that you have been with for a long time, let them know that you are shopping. As a great client, they don’t want to see you go, and may compete for your business.

5. Know how much risk you pose in the insurance company’s eyes. For example if you are in an area known for weather damage, you are higher risk. Other risks are: gender, age, marital status, area of town you live in, etc. - all of these factors equate to risk.

Being an informed consumer can make a big difference in your policy premiums.

posted by Nikki Rollins
nrollins@homerenovationguide.com