Home Sweet Home: Why Homeowners’ Insurance Is Your Safety Net

Home Sweet Home: Why Homeowners’ Insurance Is Your Safety Net

Home ownership is the pinnacle of the American dream, but finding your new home is just the beginning. Not having proper homeowners’ insurance can turn the American dream into a nightmare. Did you know that the type of policy and coverage limits can determine if claims are covered and can impact the payout in the event of damage?

Unexpected damage can and will happen. For example, about one in four homeowners have filed claims on their homeowners' insurance, and the average claim amount was $20,700*. With that in mind, here are some tips for homebuyers when shopping insurance, to ensure the best value and coverage:

  1. Shop Early: Start looking for homeowners’ insurance at least 30 days before your closing date. This gives you ample time to compare quotes and find the best coverage.
  2. Insure at Replacement Cost: When setting up your insurance policy, make sure the insurance value on your home reflects its replacement cost, not its market value. The replacement cost considers the expense of rebuilding your home from scratch, including materials and labor.
  3. Consider Bundling: If you have a car, consider bundling your home and auto insurance. Bundling can often lead to lower rates and simplify your insurance management.
  4. Review Deductibles: Weigh insurance premiums against the out-of-pocket deductible savings. Adjust your deductible based on your preferences and financial situation.
  5. Evaluate Your Assets: Determine how much liability coverage you need. Additionally, consider insuring valuable items like jewelry or other collections separately.

Working with an independent agency such as Anywhere Insurance offers easy streamlined access to multiple coverage and pricing options doing the work for you. If you’re considering buying a new home, we can’t wait to assist with shopping for homeowners’ insurance. Click here for an appointment to start your process of getting a quote today!

*Source: 2022 Homeowners Insurance Industry Analysis and Statistics (safehome.org)

This material is meant for general illustration and/or informational purposes only. Although the information has been gathered from sources believed to be reliable, no representation is made as to its accuracy. This material is not intended to be construed as legal, tax or investment advice. You are encouraged to consult your legal, tax or investment professional for specific advice.