Buying Home Insurance

Question

Just bought my first home (So scared!) and I'm called around looking for the best price on home insurance. It seems to easy - do I really just go with the cheapest price? Are there things I should be considering, asking for, etc.? What do you recommend to make sure I get what's best, instead of just what is cheap? Any and all recommendations appreciated.

(P.S. I have also witnessed that combining my auto and home doesn't always yield the best deal! I may keep separate companies for these if it saves me money)

Answer 1

No, you don't just go for the cheapest price!  COVERAGE is actually more important than price!  You want guaranteed replacement cost on the house and the contents; you want backup of sewers & drains; you need to consider the possibility of flood insrance, and you need an agent that will sit down and talk to you, to figure out what OTHER coverages you might need, like Building Ordinance & Law.

Answer 2

Along with price - its important to see what coverage form you are getting.

Most site built homes are insured on an HO3 policy with a Replacement Cost Endorsement for their contents.

Here's a crash course on the coverages provided by a homeowners policy. This is pretty standard.

Coverage A - this is the coverage for the house itself. You want to make sure this is enough to rebuild your house exactly like it is.

Coverage B- this is for other structures (outbuildings, fences, swimming pools etc). Usually this is 10% of coverage A.

Coverage C - contents coverage. This pays for your personal property - if you would take it with you if you move - it's coverage C.

Coverage D - loss of use - If your house is not inhabitable - this pays for your additional living expenses.

Coverage E - liability coverage - if someone his hurt on your property due to your negligence  (does not apply to residents of your household).

coverage F - medical payments coverage - pays for dr bills if someone (not a resident of your household) gets hurt on your property -regardless of fault.

You also want to make sure you get a policy with a company that is rated at least A by AM Best.

Good Luck and Congrats on your new home.

Answer 3

Check out ratings of the companies - the cheapest isn't always the best buy.

Look into replacement insurance rather than one that will pay just the depreciated value if you have a loss.  It will cost a little more, but not much more considering the different coverage it gives you.

And congratulations on your new home.