Things you should keep in mind when purchasing homeowners insurance

When it comes to buying a home we have a lot on our minds, and we sometimes may only give minimal thought about the home insurance buying process. Although, homeowners insurance can literally save your financial situation if the worst were to happen. We’ve come up with a few basic things to consider before buying your next homeowners insurance policy.

#1 Take a look at multiple homeowners insurance policies 

Every home insurance company is different and will have unique rules and guidelines. They may even have discounts that others may not have. You’ll want to compare coverages and see what fits your situation best. The cheapest home insurance policy may not always be your best option. 

It’s best to do this with a licensed professional such as one of the wonderful agents at Eugene C Yates Insurance Agency. One of our amazing home insurance agents will take a look at your needs and risks and present several options from the top home insurance companies in the industry. Easy, convenient and effective! From a quality insurance broker you can trust!

If you would like to get a free homeowners insurance quote now, please feel free to give us a call at 209-339-1130. One of our professional agents will go over your needs as a homeowner and answer all of the questions you may have regarding homeowners insurance. 

#2 It’s easy to escrow your homeowners insurance payments with your mortgage payments

If you carry a mortgage on your home, more than likely the mortgage company will require you to pay for homeowners insurance. Most of us will even track our home insurance payments with our mortgage payments, being that it’s basically going to the same place. To simplify this process you can have your lender pay for your homeowners insurance as you pay for your mortgage payment. Typically this is done with your property taxes as well and is commonly referred to as PITI (principal, interest, taxes, insurance). Most mortgage lenders will prefer this option because they are sure you’re making that important homeowners insurance payment. 

Usually you will be required to pay for the year in advance or at closing. From there the mortgage company will include the payment within your bill every month. This is an easy way to insure your home is protected and overall it’s just an easier way to make sure you take care of all these separate bills at once. 

#3 Make sure you get the homeowners insurance coverage you need 

You want to pay attention to the level of homeowners insurance you receive. You’ll want to avoid overpaying and you’ll want to avoid not having the coverage necessary to rebuild the home. 

Common levels of home insurance coverage;

HO-2; This is a broad policy that will protect you for 16 perils that will be named within your homeowners insurance policy.

HO-3; This is an even broader home insurance policy that will protect you against all perils except the ones specifically excluded in your homeowners insurance policy. 

HO-5; This is a premium policy that is designed to protect newer, well maintained homes. It will cover you against all perils except for the ones that are specially excluded from your home insurance policy.

HO-6; This homeowners insurance is for co-ops and condos. It will include personal property coverage, liability coverage and coverage for home improvements to your unit. When it comes to the insurance that covers the structure of the home, typically this is covered through your homeowners association. 

HO-7; This homeowners insurance coverage is for mobile homes and is similar to HO-3. 

HO-8; This is a homeowners insurance coverage specially designed for older homes. It is a very similar coverage to an HO-2 policy. Although, it will only cover the actual cash value. 

#4 Understand the details of your homeowners insurance policy

We put together a few simple terms you may want to think about when buying your next homeowners insurance policy;

Deductible; Refers to the amount you pay out-of-pocket before your home insurance coverage will go into effect. Remember with your deductible the higher it is, the lower your homeowners insurance premiums will be. The lower your deductible is, the higher your home insurance premiums will be. 

Liability coverage; This portion of your home insurance policy will cover medical bills and legal fees if someone is injured on your property.

Personal property; This has to do with the contents in your home and can include clothing, jewelry, furniture and electronics to name a few.

Home insurance premium; This is the amount you’ll pay to keep your homeowners insurance policy active. It is usually paid annually or monthly. 

Replacement cost; This type of home insurance coverage will pay the full cost of replacing the home or personal property up to a certain dollar amount. Most of your standard homeowners insurance policies will offer replacement cost, but always make sure the max amount is going to be high enough for you. 

Actual cash value; This is a type of homeowners insurance policy that will give you the current value of your home taking depreciation into consideration. 

If you would like to speak to one of our amazing agents about homeowners insurance coverage, please give us a call today at  209-339-1130