Tips on Insuring Your New Home
Buying a new home can be one of the most exciting times of your life, right up there with your wedding day or having a baby. It’s a time-consuming process that involves plenty of legwork and paperwork. After getting the requisite approvals and making the necessary signatures, the first thing you should start thinking about is insuring your new home. Most mortgage providers require some form of home insurance, but chances are it’s a basic policy that doesn’t cover all of the potential pitfalls that can trap new homeowners for the insurance you pay to protect your home.
Here are six helpful tips for maximizing your homeowners insurance:
1. Know your home’s replacement value
Even though you might have just purchased the house, you could have paid more or less than the market value. DTRIC suggests checking with a local builder or assessor to establish the most accurate value to replace your home. You don’t want to insure a home for less than it’s worth to replace nor do you want to pay higher premiums for an overvalued house. Don’t confuse your house’s market value with its replacement cost. Insurance covers the replacement value and not the market value.
2. Understand what's covered
Mother-nature has a consistent tendency to wreak havoc on homes, which is why many natural disasters are not covered. Standard policies typically have exclusions for earthquakes, tsunamis, flooding and although windstorms are not generally excluded, damage from hurricanes in high-risk areas might not be covered.
3. Compare and contrast companies
One company might have great coverage but less than responsive agents, while another company can have high premiums but great agents. For some people, this can make a world of difference. You will be dealing with the agent during any claims process, and sometimes this process can take a considerable amount of time. Because of this, it can be preferrable to seek out agents that have good online reviews or come with a strong recommendation from a trusted source.
4. Be safe
In some instances, installing a burglar alarm that connects to a central monitoring service hub can help lower your premiums by as much as 15-20 percent. Adding a simple deadbolt or adding smoke detectors helps to protect your home.
5. Bundle your policies
Look into whether your insurance companies provide a discount if you bundle other types of insurance such as auto with your homeowners policy. You might be surprised to find out that not only do they bundle policies, but they also reward you with a discount of up to 25 percent or more off your premiums.
6. Make wise additions
If you are considering an addition to your home, use safer fire-resistant materials like cement or steel-framed structures that are less likely to burn down. On the other hand, wood-framed structures are susceptible to fires, so the rates to insure them are higher.
Get a Homeowners Quote
Our knowledgeable DTRIC representatives can assist you with a free, no-obligation home insurance quote – just call 808-923-8742 or 1-877-923-8742 (neighbor islands toll-free) to get started. You can also request a homeowners quote online. For faster service, be sure to have your current insurance policy handy.
Prefer to work with an independent insurance agent? Find an agent near you.