Getting home insurance is both surprisingly easy, and devilishly tricky. It's easy in the sense that you can get home insurance almost as easy as tripping over your feet. The tricky part of getting home insurance lies in the fact that you don't always know if you are getting the best insurance. Often, people don't find out if it is good insurance until some crisis or emergency comes along, and by then it is way too late.
Here are a few simple guidelines that can help you not only to get home insurance, but to also determine if it is any good. Simply follow these guidelines as you look around for home insurance, and write down the information that you find down, and you will soon know what your complete options are.
- Know your needs. Frankly put when purchasing home insurance, many people go with one of two options: too much, or too little insurance. A common example of not having enough is living in a flood plain, or flood danger area, and not having a flood damage clause in your home insurance. In addition to this, you need to know frankly what you home is worth. A home that costs $120,000 will often need a different type of home insurance than a home that costs $300,000 or more. When looking to get home insurance, make sure that you actually know what your home is worth. If necessary, get a new appraisal done prior to purchasing a policy.
- Know your options. When getting home insurance, you need to know that there are many different options when it comes to where you get the insurance from. Each of the available companies that you purchase your home insurance from will have different associated costs. The one that you will have the most direct control over is the commission that you pay. For example, typically you will be paying somewhere between 15 to 18 percent if you go with companies like State Farm and Allstate. If you go with an independent insurance agent, you will be paying around 20 percent in commission fees.
- Shop around. Be sure that you shop around and compare the quotes from different insurance companies. Each company will also have a different atmosphere and service ability. Get a feel for each of the companies before deciding on which you want to use.
- Additional insurance. Often when you go through a company such as Geico, you can actually get something of a rate brake if you have more than one type of insurance with them. See if the company will offer you a deal like that, and if so what the rates will be. Typically the most common combinations of rate brakes will include two of the following: home, car, and life insurance.
- Understand the quote. Do not go with one simply because the price sounds good. Make sure that you understand what is being covered by the quote. Many times an insurance agent will not bring up any policy exclusions. Don't be afraid to ask what the exclusions are, and if the agent won't go over them, ask why.
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