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2 Factors To Consider When Selecting Home Insurance

January 6, 2015

Once you have your home purchased, or at least picked out, the next step is finding the right homeowners insurance that will work for the area that you live in. When it comes to insurance, many people like to be hands-off and hire a third-party handler because they don’t want to deal with paperwork and figuring out what plan works for them. But the fact of the matter is that you are better off if you know and maintain your own policy, especially when it comes to selecting and updating your policy, as neglecting to do this can lead to lack of coverage.

Here are some of the most common shortfalls of average homeowners insurance:

Building codes – You may not realize it, but many older homes are not built to code anymore, as old construction codes have been updated. This means that old houses that have been damaged or destroyed will need to be rebuilt or repaired, and that can get costly. This factor is important to consider when deciding on pricing of homeowners policies.

Flood – No matter where your home is located, you want to be sure that you are covered for freak accidents and weather patterns. This means investing in flood insurance. Evidenced by recent strikes of hurricanes in historically unaffected areas – Hurricane Sandy in New England – having flood insurance is a good way to ensure that you are protected no matter what.

According to Property Casualty 360, “the fact remains that too many people just think about their mortgage value when selecting their homeowners policy. So, in the event of a loss, these homeowners can pay off their mortgage but not necessarily rebuild their home.”

Therefore a good rule of thumb is to call in a professional, examine your mortgage, and how much it would cost to replace your home if necessary. From there, you will be informed enough to pick a policy with the assistance of a knowledgeable professional.

If you are in need of a monetary expert, contact Guaranty Mortgage Services. We can help you finance your home and determine its worth before selecting an insurance policy.

Sources:

http://www.propertycasualty360.com/2014/08/12/the-5-most-common-homeowners-insurance-shortcoming?t=northeast&page=3

http://www.kitv.com/news/tips-on-filing-insurance-claims-following-damage-storm/27450844#!bCRGI1

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