Step by Step Guide to Buying Home Insurance
Your home is probably the single biggest investment you’ll make in your life. Unless you’re gangster-rich and don’t need a mortgage, your lender will probably insist you have home insurance.
When buying home insurance, here are the steps you need to take to get the best deal possible.
Find an Insurance Broker
Don’t go to the first bank that comes to mind and give them your money. While they may be able to give you a quick and convenient quote, the last thing you want to deal with is sub-par coverage when your house is under six feet of water. At the very least, you’ll want to do research and compare different quotes before settling on one.
Insurance brokers deal with many companies and can talk to you about buying home insurance that gets you the best protection out there. They can also tailor your policy to fit your personal situation and educate you about what coverage is – and isn’t – available. Take the time to shop around or work with an insurance broker (online or offline). You’ll appreciate it if you ever need to rely on your insurance.
Know Your Insurance Options
Basically, home insurance covers the dwelling, the contents, and the personal liability of you, your spouse, and children under 18 years old. Coverage can also extend to children over 18 and attending university/college/technical school and living at home.
Ask your insurer if they are part of ICC (Insurance Claims Collaborative) because this will have an impact on how the company deals with your claims. For instance, I had to file a claim to get the vinyl siding on our house repaired after a hail storm.
Under the ICC process, our insurance company found a “close match” to our existing siding and only redid two sides of our house. Now we have two different kinds of siding on our house, and that will impact the resale value. Understanding your policy and your options is essential when buying home insurance so you know exactly what to expect.
Keep Your Policy Updated
Once you’ve settled on the policy that’s right for you, you’ll be able to sit back and relax, right? Not quite. There are a few things you’ll have to consider as you go along so your coverage remains current.
Update your insurance company if you renovate or add to your property in any way. If you start renting out a room or have other family or friends move into your home, double check that everyone is protected/covered under your policy.
In addition, you might want to perform a yearly review of your coverage to make sure that it still fits your needs. Buying home insurance shouldn’t be a “set it and forget it” situation.
Maybe you’ve acquired some expensive art or inherited some jewellery that you’ll want noted on your policy. Or maybe your children have turned 18 and have moved out of the house. All of these are causes to adjust your coverage.
Keeping an eye on your insurance is the best way to be confident that you’ll be covered in the event of an emergency. Happy insuring!