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How Much Home Insurance Do I Need? A Guide
You can expect to pay approximately $1,100 annually for your homeowner’s insurance policy.
However, this average doesn’t necessarily apply to you or tell the full story. If you are shopping for a homeowner’s insurance plan for your house, it is important that you weigh all factors until you find the right price.
There are a lot of different factors that will come into play, which is why you owe it to yourself to hunt down the policy that will work best for you.
But you might be asking, how much home insurance do I need?
This is a question that every homeowner starts with, and thankfully, we’ve got answers for you. Consider the tips below in order to get a homeowner’s insurance plan that covers you.
How Much Home Insurance Do I Need?
When you’re shopping for homeowner’s insurance, it’s important that you figure out first and foremost how much you need.
By considering these variables you will be able to start putting the pieces together.
Consider the Size, Value, and Age of Your Home
One of the biggest factors involved with buying homeowner’s insurance is the structure itself. Things like the square footage of the home, its overall value, the materials it’s built with, and the year it was built all factor into what sort of insurance you need.
Since the insurance plan is meant to help replace your house or pay you for the value, you’ll need to get a recent home appraisal before buying an insurance policy.
The more accurate this appraisal is, the better chance you will have matching up with the right insurance plan right away.
Make sure that you weigh these factors to the best of your ability when you are getting ready to purchase a policy.
You must also keep in mind that your insurance policy might change from time to time based on changes in home value. For instance, making changes to your home’s landscape can make a big difference in your property value.
Renovating the home, adding solar panels, installing a new driveway, and other such factors also play a huge role in what you can expect out of a policy.
Think About the Features of Insurance That You Need
There are a variety of features that you can purchase to go along with your homeowner’s insurance plan.
For example, you may need coverage that protects specifically against flooding or storm damage, a plan that will replace certain fixtures, or provisions to provide a temporary home while you are displaced.
It’s important for you to consider the ins and outs of where you live and what sort of features are available to be certain you’re getting everything you need from your policy.
Figure Out What Premiums You Can Afford
As you consider how much insurance you need, a bit part of it also revolves around how much you can afford.
The last thing you want to do is bite off more than you can chew with a policy. By getting some estimates on your premiums you’ll be able to shop around until you get what you need.
By knowing how much you can afford, you can stick to your budget while you shop for the premiums.
Make Sure to Cover Specific Valuables and Fixtures
One of the benefits of homeowners insurance is that you can use the plan to cover individual items as well.
For instance, when you get engaged, you now have an expensive piece of jewelry that you’ll need to worry about. To be sure that you’re covering it, why not put the ring on your homeowner’s insurance plan?
When you shop for a plan, consider these types of valuables so that you have the full picture when getting quotes.
Look Into Promotions and Discounts
When considering what you need, don’t forget about the potential for promotions and discounts.
You may be able to get a little extra bang for your buck if there is a promotion going on. From here, you are able to maximize on the policy and make sure that your home is covered in a way that is ideal.
Speak to Many Different Insurance Companies
To really get a clear picture of how much insurance you need, you should speak to a few different homeowner’s insurance companies.
Since there are so many different insurance companies available, there’s no reason to go with the very first one that you find. You can use this recent Clearsurance article to get a list of some of the best homeowner’s insurance companies on the market today.
This will help you make sure that you’re getting the best value whenever you look for a policy.
When you speak to these companies, they’ll have you answer a series of questions about your home, your lifestyle and other matters. This gives you the chance to match up with the best plan.
They can also help you decide whether you need to cover your home for actual cash value or the replacement costs.
Do Your Due Diligence When Trying to Find an Insurance Plan
When you’re wondering “How much home insurance do I need?”, it’s important that you consider these words of advice.
Being a homeowner is a labor of love, so make sure that you are always ahead of the curve. For more information on getting the right homeowner’s insurance plan, in addition to more home, garden and lifestyle advice, check out our posts.