How to Get the Correct Home Insurance for your House

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Congratulations, your house purchase is coming on well, and now you need to think of home insurance. Be careful there are two issues here. One is insuring the actual house itself so it is covered if it burned down or was destroyed and the other is to insure the contents of the house itself. Here we are talking about insuring the building itself against damage. Most mortgage lenders will insist on having this coverage to protect the property, which they own until you have paid off the mortgage. Rates have been rising recently and cover has declined, so buyers beware. Many people are under insured and this can be a painful place to be, if things do go wrong.

Things you will need:

A list of friends and acquaintances who are in a position to make personal referrals.
The advice of your Real Estate Agent.
Input from your Lawyer.
A legal pad and pen.
A calculator.
Internet access.

Step 1

You need insurance on your new home. Perhaps, you already have car or some other type of insurance.Go to your Insurance provider. These people know you, so ask for a quote. Once you have a quote you need to compare it with what is available in the marketplace.

Step 2

Ask your Real Estate Agent and Lawyer to recommend a reputable and reliable insurance company. Get quotes from them.

Step 3

Ask your friends and acquaintances to tell you of positive experiences they have had with insurance companies. Make a list of the companies.

Step 4

Check these companies out on the Internet. Look for blogs and chat groups where people relate individual experiences. Use Google to find the relevant sites.

Step 5

Now you should have a list of companies with whom you would like to do business . Ensure the companies are stable and in a position to honor their commitments. The Standard and Poors rating will give you this information. Again use Google to find Standard and Poors and look up the ratings of the companies.

Step 6

Next get quotes from all the companies you have on your list. The cheapest quote is not necessarily the best. Select the company with the best reputation for meeting claims without hassle and that has a reputation for customer care. They may not be the cheapest on your list but they will be the best bet. They might offer you a better deal if you suggest your transfer your car and household contents insurance over to them.

Tips

If you live in an area that is prone to earthquakes or forest fires or you have a poor credit rating you might find it difficult to get a quote at all. However, know that there are companies that specialize in high-risk cover, but you will pay a higher premium. Each state has a “high risk insurance pool”, so there is in fact no reason why you should not be able to secure insurance cover for your property.

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Filed Under Home Buying, Insurance 

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