Best Home Insurance

Buying a home is exciting, but it’s also daunting — it may be the largest purchase you’ll make in your lifetime. While buying a home is typically a good investment, it does present some risks. For example, your property could suffer damage from a fire, lightning, or wind storm. Or you could be held liable for an unfortunate accident that occurred on your property. Having homeowners insurance can alleviate some of these risks.

How to shop for home insurance

Not sure where to start? Here’s what you need to know.
How to shop for home insurance

Your home is your castle. And in many cases, it’s your family’s largest investment. As a result, home insurance is usually an easy sell – nearly everyone recognizes that it’s a necessity. But you shouldn’t let your emotional investment in your home sway you to pay too much or settle for coverage that fails to provide the protection you need. Here are some things you should consider when comparing home insurance policies.

Compare coverage options

Your first goal is to select an insurance policy that offers the coverage you need. Each provider offers different coverage options with their policies. This helps you tailor your coverage to reflect your individual needs.

Dwelling coverage

Dwelling coverage protects you from damage to your house and any structures attached to your house. This includes damage to electrical wiring, plumbing, fixtures, air conditioning, and heating systems.

Check types of coverage available

When comparing one quote to another, ensure that each offers your desired coverage type.

What coverage types are available?

  • “Actual cash value” means you will receive an amount that equals the value of your house and belongings, minus depreciation.
  • “Replacement cost” gives you the actual cash value without subtracting depreciation.
  • “Guaranteed replacement cost,” covers the cost to rebuild your home, protecting you against inflation.

The more security you want in your coverage, the more expensive the plan will be. Be sure to check which type of coverage your provider offers.

Compare deductibles/premiums
Another important consideration is the policy’s deductible. The deductible is the figure that you have to pay before the policy covers your loss. The higher your deductible, the lower your monthly payments, and vice versa.

Each provider may offer different options for deductibles and premium payments, so be sure to find out what’s available when comparing companies. Don’t jump at the lowest monthly payment only to find out later that you have to pay thousands of dollars out of pocket.