Insurance Insights
June 22, 2021

Choosing the Right Homeowner’s Insurance

Keep Your Home & Belongings Protected

Owning a home is a lot more than having a roof over your head and a place to sleep at night. It’s one of your most valuable assets and should be protected as such. After all, should the worst occur, you wouldn’t want to have to pay out-of-pocket to cover any damages. Thankfully, there are many different homeowner’s insurance policies available that can help you not only protect your home, but all your belongings within your home as well. But not all policies are equal and choosing the right homeowner’s insurance is the key to protecting your investment and providing you with peace of mind.

Homeowner’s Insurance Safeguards Your Life

Homeowner’s insurance is designed to protect your home and you against certain risks, such as lightning, fire, or theft. Specifically, if your home or personal belongings inside are damaged or stolen, homeowner’s insurance will compensate you. This allows you to repair any damages to your home, yard, or immediate surroundings, or repair or replace any items that were damaged or stolen. In some cases, it can also help cover personal liability if someone is hurt on your property or inside your home. Any well-balanced homeowner’s insurance policy will usually include three specific forms of coverage as well: Building (Dwelling), Property, and Loss of Use.

  • Building (Dwelling) Coverage – Ensures that should your home or dwelling be damaged that you receive the full replacement value of your home, and any other losses (partial or total) are paid without penalty. The only cost you should be responsible for is your policy’s deductible.
  • Property – Ensures that your personal property such as clothes, tables, chairs, beds, etc. are covered and that you’ll be compensated for their loss. If you own a home 50% of your dwelling value is included for your personal property. More can be purchased, if needed. If you are a renter or condo owner, you must choose how much coverage you will need.
  • Loss of Use – When your property is damaged by a covered loss, you may have to go somewhere else to live until repairs can be made. You may also have to spend extra money for other things such as eating or driving to work. Loss of Use coverage will provide you with a certain amount of money to pay these additional expenses.

Always Weigh Your Options

Much like other forms of insurance, one of the best things you can do before choosing a homeowner’s insurance policy is do your research. That means shopping around and comparing policies to one another. Be sure to check all the relevant facts – how much monthly premiums are, what each policy covers and doesn’t cover, what the deductible is and if there are any out-of-pocket costs to consider. If you’re overwhelmed by choice or don’t know which policy works best for you can help you compare choices and find the right policy for your needs and budget.

Consider Deductibles & Plan Limits

As mentioned above, the deductible is one of the most important factors to consider when it comes to choosing the right homeowner’s insurance. Most policies charge a flat dollar amount. Essentially, if you receive a claim check for damages to your home or property, the deductible is subtracted from the original approved amount by your insurer. By increasing your deductible, you can lower your monthly premiums, but that means taking on more of the financial burden if you do ever have to file a claim. Conversely, a lower deductible means a higher monthly premium, but you pay far less when you file a claim. These are all things you need to weigh out – however, a qualified agency like Pardee’s can work through your coverages and expenses and figure out which plan makes the most financial sense for you.

Change for the Better

When most of us buy our first home, we choose a homeowner’s insurance policy that makes sense at the time and to secure a mortgage. However, homeowner’s insurance isn’t necessarily something that’s “set and forget”. It’s always a good idea to re-examine your policy options every so often, especially if you move to a new home or remodel your existing home. By remaining proactive, you can revisit coverage options you might not have needed or been able to justify having in the past. This is also a great way to reduce your premiums on annual expenses. Not only that, but by looking into different policies with an agency like Pardee’s, they can be more aware of additions to your home and changes in its value, so they can find the best new policy for you.

Home Inventories Help

You may never know when a disaster can strike – but you can be prepared before it does. Taking regular home inventories is one of the best ways to keep an accurate tab on your home and your belongings. It helps you keep up-to-date on your home and property’s value and condition. There’s also a plethora of mobile tools that let you DIY your own home inventory by taking a picture of an object, tagging it and storing it online. Free mobile apps that do this include Evernote, Google Keep and Microsoft’s OneNote. Qualified agencies like Pardee’s can provide you with secure online storage and make your home inventory process easy and worry-free.

Homeowner’s insurance is the key to preventing an accident involving your home and property from turning into a disaster. The right policy will give you the best bang for your buck and allow you to feel safe in the knowledge that even if the worst happens – you can restore your home and replace your belongings.  Contact our helpful team today to discuss the best plans available for you and your home!

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