Life is complicated, insurance doesn't have to be.
Buying a home is an exciting, new adventure. One of the many decisions you will make is how to insure your new home.
The Insurance Information Institute reports that one in 20 insured homes has a claim each year. While you never want to file a claim, having the right coverage is critical to your new investment.
Here’s how you can make sure you’re choosing the best homeowners insurance coverage for your home.
1. Understand What Homeowners Insurance Provides
It's important to understand homeowners insurance when selecting your coverages.
Most standard homeowners insurance policies cover:
An Auto-Owners standard Home policy will also cover:
2. Explore Your Options
One of the important choices you will make when selecting a policy is your limit of insurance.
New homeowners will often consider their home’s resale value when deciding their limits of insurance. However, you are not insuring your home’s resale value.
You want your insurance limit to cover the cost to completely rebuild your home after a covered loss.
Beyond choosing your limits, you will also have optional coverages you can add on to your policy. These may include:
Check out this interactive home tour to see Equipment Breakdown Coverage in action.
3. Choose the Right Insurance Company
Your next step is choosing the right insurance company. We recommend starting with a local, independent insurance agent.
When you search for the cheapest insurance option online, you are most likely missing important details and coverages. A low price doesn't necessarily mean appropriate coverage.
A local, independent insurance agent represents many insurance companies. They can provide you with personalized quotes from any of them based on your needs.
Read: Why Independent Agents?
An agent will help you dig deeper and find out exactly what is and isn’t covered under each policy you consider. Also, their success is dependent on representing quality insurance companies. So, they are very familiar with insurance companies known for superior customer service.
Find your local, independent insurance agent with our Agency Locator tool.
4. Bundle Your Insurance Policies for Extra Savings
Oftentimes, insurance companies offer multiple-policy discounts since they sell multiple types of insurance. If you buy more than one policy from the same insurance company you may qualify for policy discounts.
So, if you have the option to bundle your policies with one insurance company, it is usually a good idea.
5. Remember to Look Ahead
Lastly, remember your home insurance needs may change over time. Your insurance agent is a great resource during changes to your home.
As your home and family change, tell your agent. This will help make sure you still have the best coverages for your home.
Examples of these changes may include:
Another aspect of your home that may change over time is the contents inside. It’s a good idea to keep an up-to-date home inventory to document the items in your home. Several free apps can help you capture the information quickly.
Choosing the Best Homeowners Insurance for Your Home Doesn't Have to be Hard
Purchasing your first house and homeowners insurance is not something to rush through. The advice of your local, independent agent is a great way to ensure your home is covered properly.
Disclaimer: The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Please check with your local Independent Auto-Owners Insurance Agent for details.
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