Right around the end of July and beginning of August, you will receive your property tax statement in the mail. Your property tax statement will come from the county or city assessor’s.
10 Tips On How To Choose Homeowners Insurance
Buying a home is one of the largest investments you'll make in your lifetime, both financially and emotionally. That's why it's always good to be well-equipped when navigating the weltering sea of homeowners insurance companies. Here are some helpful tips to get you started on the right foot.
1. shop around for coverage
If you own a home, your mortgage lender will require homeowners insurance. To find a policy, consider getting quotes from a handful of home insurance companies, and assess their coverages, limits, and deductibles. Our list of favorite insurance agents is below.
Make sure you aren't sacrificing protection for the bare-minimum price either. And since you're probably going to be communicating with your insurer during stressful moments, consider picking a company that is known for quality customer service and 24/7 support.
2. find out the company rating
A.M. Best is a great source for third-party ratings for virtually any insurer in the United States.
Their rating analysis involves comparing the business to other businesses and evaluating them against industry standards. Put simply, it's an assessment of a company's ability to meet its obligations to customers (such as paying claims), which can help provide peace of mind when picking homeowners insurance.
3. consider the location
If you are in the market for buying a home, bear in mind that the location of your house could impact how much you pay for home insurance. For example, if the house is in a canyon with volunteer firefighters, or the closest fire station is more than 5 miles away, rates may start to hike up. Or if your home is in a flood zone, the lender will require flood insurance. Premiums could also be higher if the house is in a geographical location that is vulnerable to natural disasters like wildfires, flooding or tornadoes.
4. take advantage of discounts
Most companies offer homeowners insurance discounts for behavior that mitigates risks, so take advantage of them. From storm shutter installation and smoke detectors, to burglar alarms and water safety systems, you may be able to save some extra cash on your home insurance premium. Be sure to bring that up.
Some homeowners insurance companies even offer discounts for simply being a new home buyer. Also, improving your credit score could increase your chances of getting a better rate. The higher your credit score, the lower your perceived risk may be.
5. go online or use the list below
The most effective way to commence your research is by venturing on the interweb or use the list below. Simply typing in "homeowners insurance quotes" on a given search engine is guaranteed to illuminate your screen with a bevy of pertinent information and options.
In addition, there are some insurance companies born and raised online that offer a convenient and affordable way to buy and manage your policy.
6. know the costs
Remember, you're going to want your house insured for its replacement cost, not its market value. While the market value denotes the amount a buyer pays for the home, the replacement cost concerns the expenses needed to repair or rebuild the entire home.
Keep in mind the costs that may be required to transport the materials to the site, as well as other factors like inflation.
7. compare deductibles
As you start to build your policy, you can finally set your homeowners' insurance deductibles. The deductible is how much you'd pay out of pocket on a claim.
For instance, choosing a higher deductible could help you lower your monthly premium — but it would mean more money coming out of your wallet before your insurance company pays out.
On the flipside, a lower deductible means you'd pay less out of pocket after a claim — but your homeowner's rates may be higher each month. There are certainly pros and cons for both cases, and ultimately it comes down to your financial security and personal circumstances.
8. know the home in and out
If you have recently bought a home, make sure to get a claims history report from the seller. This report details any previous damage to the home, such as fires, flooding, and other incidents. It can clue you in on any of the home's frailties that could increase homeowners insurance rates — or, worse, make it difficult to even get insurance.
The Comprehensive Loss Underwriting Exchange is the largest database used by the insurance industry, providing a history of damages to a home that resulted in a claim being filed. The disclosure outlines the date, type, and amount paid for the claim, as well as other helpful information.
Because factors like the age of the electrical system, plumbing, and other components within the home could impact premiums, try to gather as much information as you can to gauge potential issues. Bear in mind that newer homes are usually in better condition than older homes, and could, therefore, be cheaper to insure in some cases.
9. answer questions honestly
When getting your quote and selecting home insurance coverages, honesty is critical. Getting the proper information helps your insurance company provide more reliable protection.
For example, if you plan on upgrading your kitchen (check out that new backsplash!), the value of the home is likely to increase, and your coverage needs to reflect that for your protection. Likewise, if you plan on having a home office, you want to make sure you have the proper liability coverage just in case a client slips on that vinegar floor solution you forgot to towel dry.
Not only could providing incorrect information lead to an inaccurate quote, but the insurer may end up canceling your policy.
10. know your coverage
Homeowners not understanding their coverage is a more common issue than one might think. And in a way, it's understandable. A standard homeowners insurance policy is an intricate piece of literature, outlining the nuances of what is and isn't covered — it's also not a particularly riveting read.
Nonetheless, your policy is important. So, if you're in doubt about anything, speak with your insurer and ask them to explain anything you don't understand.
Here's a list of all the insurance agents we feel comfortable recommending.