Your home is not just a structure; it’s a sanctuary, a personal haven where memories are made and treasures are kept. Protecting this haven with homeowners insurance is crucial, but it’s no longer as simple as buying a standard policy.
So, because finding the right insurance is more complicated, what is the first step to consider when purchasing homeowners insurance?
We understand the importance of peace of mind with a tailored insurance plan at Dickstein Associates Agency and examine your options from all sides. As a complement to our article What Your Homeowners Insurance Probably Doesn’t Cover, this article lays out the five essential steps to securing your sanctuary with homeowners insurance.
1. Calculate Your Homeowners Insurance Needs
Knowing your needs is the first step in getting homeowners insurance. Calculate your home’s replacement cost and asset value. Your home’s location, hazards, and environmental risks may affect your coverage.
- Replacement cost: Estimate the cost of rebuilding your home with comparable materials and quality after a total loss — factor in lumber, labor, and local building codes. Construction professionals, online calculators, and our experts at Dickstein Associates Agency can help you estimate this number.
- Personal assets: Assess the value of your belongings. List electronics, appliances, furniture, and valuables for adequate coverage. Sentimental items may be irreplaceable and need extra protection.
- Location and environmental risks: Location significantly impacts insurance needs. Hurricanes, earthquakes, and floods may require additional endorsements or policies; identify local risks and their impact on home value.
2. Get to Know Standard Coverages
Six critical coverages comprise the basis of a homeowner’s insurance policy:
- Dwelling: Protects the structure of your home from covered perils like fire, wind, theft, and vandalism.
- Other structures: Covers detached structures like garages, sheds, or fences.
- Personal property: Provides coverage for your belongings in case of damage or theft.
- Loss of use: If your home becomes uninhabitable due to a covered peril, this coverage will help with additional living expenses.
- Liability: Protects you from financial responsibility if someone gets injured on your property.
- Medical payments: Covers medical expenses for guests accidentally injured on your property, regardless of fault.
Policies typically offer three levels of coverage for dwellings and personal property:
- Actual cash value (ACV): Reimburses the depreciated value of your belongings at the time of loss
- Replacement cost value (RCV): Covers the cost of replacing your belongings with new ones of similar quality
- Extended replacement cost value (ERCV): Similar to RCV, but accounts for potential inflation in building costs
Standard policies typically exclude floods, earthquakes, and specific other perils. You might need additional coverage depending on your particular needs and location.
3. Gather Information for Quotes
You’ll need details about your home for accurate, competitive insurance quotes. Prepare to provide the following:
- Year built, square footage, and construction type
- The home’s current value and replacement cost
- Security systems and safety features
- Claims history (if any)
- Desired coverage levels and deductibles
Complete and accurate information helps identify additional coverages for high-value personal items or specific natural disasters and improves quote accuracy. Talk to your insurance agent about jewelry or collectibles insurance.
4. Compare Quotes
Choosing a policy involves more than just selecting the lowest premium. Researching different insurance companies is vital. Consider factors like:
- Financial strength and stability of the company
- Customer service reputation and complaint resolution process
- Discounts offered for bundling policies or safety features
- The comprehensiveness of their coverage
Comparing quotes from multiple companies lets you compare rates, coverage, and value. Our independent agent status allows Dickstein Associates Agency to compare options from reputable insurers, simplifying your decision-making.
5. Choose a Policy and Deductible Level
When choosing a policy, it’s best to consider coverage, affordability, and risk tolerance. Check the policy details, exclusions, and limitations before choosing.
Consider the deductible, coverage, endorsements, or riders. A deductible is the amount you pay before insurance coverage begins. A higher deductible lowers premiums, but you must pay for minor repairs. Our team assists you in assessing the trade-offs and making a decision.
Get Covered in Five Steps
You can confidently choose homeowners insurance by following these five steps. Remember, you’re not locked into your chosen company throughout the policy period. You can switch providers if your needs change or if you find a better deal.
At Dickstein Associates Agency, we understand the importance of home protection. It’s our job to help you safeguard your home with the right insurance. Let us help you protect your haven with the coverage it deserves.
To request a competitive, comprehensive quote and receive expert guidance on your homeowners insurance needs, contact Dickstein Associates Agency today.
