We put in a tremendous amount of research, effort, time, and money while buying a home. But when it comes to buying homeowners’ insurance, we just don’t seem to put in the work. Since mortgage lenders make it mandatory to get a homeowners insurance policy, we skim through the process and buy what’s most convenient or even cheapest.
Today, let’s go through a simple yet informative guide to how you can buy your homeowners’ insurance policy as easily as you’d buy your groceries online!
First off, what does home insurance do?
Home insurance protects your home and personal belongings from damage caused by various perils like theft, floods, wildfires, and other natural disasters. It covers the cost of your hotel stay in case your home isn’t in a condition to live in.
What does home insurance cover?
Now, depending on where you live, the likelihood of risks in your area and other factors may affect the terms, coverages, and pricing of your homeowners’ insurance policy. For instance, if you live in an area that’s prone to hurricanes, you might need additional coverage to protect your roof. Depending on the coverage, home insurance can also cover identity theft and cyberattacks as well. And you can protect more than just your home structure – you can protect the garage, fence, and more.
We can break down the standard coverage offered by most insurance providers.
Dwelling: Covers the repairs or replacement costs of your home and property caused by natural perils, vandalism, and theft.
Personal property: This coverage helps pay for the repairs or replacement of your personal belongings like clothes, electronics, furniture, and appliances after losses caused by theft, fire, and others. It also covers the belongings of your guests, if they were to be damaged or stolen.
Other structures: This covers repair or replacement costs caused by damage to structures like fences, gazebos, garages, and more, by natural perils.
Additional living expense: Covers the expense of your hotel stay in case your home is too damaged to live in.
What NOT to do while buying homeowners’ insurance
Many of us want to save a dime whenever we can. This is not the time to skimp on money. And that doesn’t mean it’s going to cost you a fortune either. There are discounts you can be eligible for. What you need to look for is the right amount of coverage. Understand what is covered and what is not. Be sure of the hazards and threats that your area might be prone to like floods, earthquakes, wildfires, and so on. Based on these factors, choose your coverage wisely. You’d rather have more coverage and be prepared than be under-covered and break the bank later. Bubble’s Guidance engine helps homebuyers through the entire process – matching homebuyers and the perils they confront with the most appropriate coverages, advice, and recommendations regarding preventative measures.
Compare insurance providers and the policies they have to offer. Some of them may have discounts on bundled insurance products like home + life insurance or home + auto insurance. Bubble helps with these comparisons too. While you’re there, get an online quote in minutes and get approved instantly. It’s pretty convenient given how tedious it is to buy any kind of insurance offline.
What to keep in mind while buying homeowners’ insurance?
There are many factors you should consider while buying the right homeowner’s insurance policy with the right coverage for your home and belongings.
First off, note down every little item in and around your home structure that you want covered. That includes gazebos, garages, fences, electric appliances, art, and jewelry, among others. The more detailed your inventory is, the easier it is to calculate repair or replacement costs.
Secondly, document every item you are getting covered on video. It helps during the claims process.
Finally, look for a provider who provides insurance in your area, offers discounts for bundling insurance products, has good reviews, and offers good customer service during and after the insurance purchase.