Buying Homeowner Insurance

Your home is probably the most expensive investment you will ever make. It is the single-most costly item you will ever own. You need to protect your investment from fire, theft, flood, earthquake, tornado and hurricane and since most of these disasters are unexpected and expensive, you need financial protection as opposed to just physical protection. While you can do things around the home to help reduce your losses, such as installing smoke detection, fire suppression systems and burglar alarms, homeowner’s insurance is absolutely imperative. In fact, you can’t get a mortgage without it.

Before you even find the home you want to buy, you should be shopping insurance companies to get a feel of their costs and their coverage. Homeowner’s insurance is often an afterthought, but with a little planning you can get the insurance that’s right for you and your home at a reasonable price without all the “last-minute-stress”.

There are many different types of insurance policies available for your home. It’s not as simple as making a call, giving your name and address and sending out a check. There are countless options available, countless levels of protection and a host of things that must be considered carefully. How much protection do you need? Are you in an area prone to flooding? Is the area prone to fires? What are your possessions worth? Clothing, computers, TVs, gun collections – everything need to be taken into account. Should you have a rider included specifically for jewelry? Are your pets included in the coverage? How about outside property like sheds or swimming pools? All these things must be thought through and it’s not a five-minute process – that’s why it’s important to start thinking about it now. Once you’re in your new home, re-evaluate your situation. Do you have more clothing than you’re covered for? Do you have overly expensive electronic equipment that might not be fully covered? Many insurance companies recommend video taping your home and your possessions in order to inventory your belongings. Just be sure that the videotape is stored in a secure location, off site. You don’t need it melting as your house burns down.

Doing your research now can save you time and money in the end as well as give you the peace of mind that your investment is protected. Talk to an insurance agent and use common sense when choosing your policy. Don’t be afraid to ask questions or say “no” – there are too many insurance companies out there and too much at stake to be strong-armed by an over-ambitious salesman.

Jim Miller is a full time full service licensed Realtor® in the Southern New Hampshire area with Bean Group and has many years of experience buying and selling New Hampshire Real Estate .

Contact Jim direct at 603-801-3987.

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