When you buy a home, you aren’t just setting money aside for the down payment. You also worry about insurance costs, which could turn out to be a lot. Given those expenses, here are 4 tips to help you get the best value for your money:
Know what coverage you need
Finding the best home insurance companies won’t do a bit of good if you end up choosing the wrong amount of coverage. If you under estimate or over estimate the amount you’ll need, you’ll just end up paying for a policy that either won’t be enough or is just too much. Use an insurance calculator to help you come up with the right estimate, says Nasdaq.
Update your policy
Unless you plan on having no changes made to your home, you’ll need to update your policy. Let your insurance provider know if you made any changes to your property. Did you pay for a kitchen remodel or a complete home renovation? Expect these changes to affect your insurance policy and coverage.
Know the limitations
Review and understand your policy, chapter and verse. Know what its restrictions and limitations are. For instance, don’t assume flood damage is covered. Check if it is. That way, you won’t have to labor under a misconception, thinking you’ll be covered when you won’t be. And if that’s the case, then this is a good time to shop around for a policy from home insurance companies that are comprehensive enough to provide you with everything you need.
Do the math
While setting a high deductible means lower premiums, you might want to strike a balance wherein the premium and deductible are at a cost that’s within your budget. In case disaster strikes, your finances won’t be left in disarray, trying to pay for deductibles that are too steep for you.
