Insuring Your Biggest Possession

Real Estate Agent with David Morton Real Estate 213092

Insuring Your Biggest Possession

For many home owners, real estate is the single biggest asset they have. Along with that comes a lot of extra time and care spent on the home, everything from mowing the lawn to paying property taxes. Home owners' insurance is one of those bits of upkeep that must be done to make sure that the significant investment you've made in your piece of real estate is protected.

Choosing a home owners' insurance package can seem like a standard bit of business but not all agents and not all insurance packages are created equal. There are a few things you should keep in mind when investigating insurance agencies and the kind of home insurance packages they offer.

Be Comprehensive
Don't settle for one quote from the biggest insurance agency you can think of. Big insurance agencies come with a lot of prestige and a strong track record, but those traits can sometimes translate into the ability to charge more for their services. Often times, there is a middle ground to be found where the reliability of the company is still sound but maybe it's not the biggest company on the block. Those types of companies can often represent good deals in home owners' insurance.

In addition, do not just settle for a company-specific agency. There are a vast number of independent insurance agents in every community free to offer you the best package for your situation, no matter what company may have it. Independent insurance agents only exist because of this advantage, so they are certainly worth doing homework on.

Don't Be Afraid Of Deductibles
Think about the kind of situation that would eventually call on you to invoke your new home owners' insurance. Is it the small repair that needs to be done after a minor accident or is it the large scale repairs needed after a tree falls on your garage? In many cases, you can get a discount on your premiums by agreeing to front more of the money yourself for any claim. By deciding to pay for small claims yourself without involving your insurance company, you can feel comfortable choosing a higher-deductible plan that saves you on your monthly premium.

Pile On The Discounts
Insurance of all types sees a whole slew of discounts for certain situations that make you less of an insurance risk. Just as car insurance companies will offer a discount to good drivers and students with strong grades, home owners' insurance companies sometimes offer discounts for features like security alarms and other safety-enhancing installations. Make sure you investigate those possibilities so that you can receive all of the discounts your home deserves.

Of course, combining different types of insurance under one carrier can also be a source of discount. Do not be afraid to get quotes on what a combined car insurance, home owners' insurance and life insurance package, for example, may cost from various providers. You can always switch your coverage and sometimes the savings seen through combining types of insurance packages is significant.

Researching home owners' insurance can sometimes seem like an arduous task and comparing packages that may have their own unique requirements can sometimes be difficult. However, by going through the process of collecting quotes from various agencies, you can get a good idea of the market for home owners' insurance on your home.

From there, go with the policy that offers you the best coverage at the most reasonable price with acceptable conditions. Every company is different and every insurance agent is difference. As with any stage of buying a home, make sure you feel comfortable with what is going on and always feel free to consult your realtor if you want a second opinion on a particular issue. The home buying process is an exciting procedure so don't let yourself get bogged down by home owners' insurance or anything other part of the process. Do your homework and you will come away with a policy that makes you feel secure in your new investment.

Posted by

David L. Morton Tor Realtor in North Carolina Lee Morton DL Morton Realty, Inc BlogDL Morton Realty, Inc Home Search

Comments (1)

Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!


So many of your points reminds me of real estate agent shopping too.  Not all agents are alike or require the same commission.  You need to research that as well.  Sounds like maybe a post coming along...

Feb 03, 2013 10:27 PM