Top 5 Insurance Buying Tips for New Homeowners

As a new homeowner, your first step – before you screw in the lightbulbs and try to figure out where to put your couch – is to purchase a home insurance policy. Homeowners insurance is critical for a number of reasons. Not only are you protecting your home in the instance of disaster, you are also protecting your investment – not to mention, you are giving yourself a backup plan if your home is beyond repair. However, purchasing a homeowner’s insurance policy is incredibly difficult and it can be expensive – so expensive that it seems not even worth all the trouble. Here are five of the top insurance buying tips for new homeowners.

  1. Save money by choosing a higher deductible. Your deductible is basically how much money you have to pay out of pocket in the instance that you need to file a claim. In most cases, the insurance company will offer a much lower deductible, so that you are forced to pay more for your policy. However, if you opt for a higher deductible – and pay more money out of pocket in the event of an accident – you can often save money on your overall policy.
  2. Fix inconsistencies and errors on your credit score. Your credit score will basically determine whether or not you pay more or less for your insurance policy. If you have a poor credit score, it could cause your policy to spike. So, your best option is to look at your credit report to find out if there are any errors that are causing your score to be lower. You can then pay back loans or ask for issues on your score to be rectified. In the end, it will be worth it to go through the trouble of fixing your credit score.
  3. Decide what kind of coverage you need and what coverage you don’t need. When you speak to an insurance company, like the Pronto Insurance Franchise, you want to know what you want covered. Do you only want your home covered or do you want your home and valuables covered as well? In some cases, getting extra items covered will boost the price of your premium. In other cases, you may not need some types of coverage.
  4. In some regions you may need a specialized insurance policy to cover against specific natural disasters. For instance, if you live in a region that suffers from natural disasters, like floods and forest fires, you may need fire or floor protection. So, make sure that you get the right policy. You don’t want to assume that your policy will cover a certain disaster and then realize it doesn’t.
  5. Always ask for discounts. As a new customer, you often have a lot of leeway when it comes to your insurance policy. An insurance company will want your business, so you can always ask for a discount. You can have other companies bidding for your service by getting quotes beaten by other companies. In the end, you can always find an affordable homeowners insurance policy if you get a little creative, pennywise and resourceful.