When it comes to your financial well-being, the right insurance is essential. But this isn’t just for health insurance or life insurance, this is also true of home insurance. Yet sifting through home insurance companies and insurance agents can be challenging and overwhelming. With much to consider including the amount of coverage, insurance costs, higher premiums or higher deductibles, and so forth, it can take time to choose the right insurance for you.
At Dickey Insurance Solutions, we know what it is like to go through the process of finding the right insurance. We also know the detriment of getting the wrong insurance. That is why our expert team is ready to put together a personalized insurance plan for even the most unique cases.
In this blog, we are putting together a guide to selecting the best home insurance for your needs. These are steps our experts take every day, but it is vital that you understand this process when choosing your own home insurance.
Understand Your Coverage Needs
To start, know what you need. There are many different types of home insurance. But there are 8 primary forms. Here is a list of these 8 types of home insurance:
- Basic Coverage: This covers an owner-occupied home against 10 named hazards for its cash value, not the cost to rebuild.
- Broad Coverage: This can cover the home against 16 named hazards and is a step up from the basic coverage.
- Special Coverage: This is the most common type of homeowners insurance. It offers replacement cost coverage for the home and covers all hazards except those the policy names as exclusions.
- Contents Broad Coverage for Renters: This provides coverage for a renter’s belongings, personal liability, and loss of use.
- Comprehensive Coverage: This protects the home and personal property for their replacement cost. It also covers all perils except those named as exclusions.
- Condo Unit Owners Coverage: This policy protects the interior of a condo, belongings, loss of use, personal liability, and more.
- Mobile Home Coverage: This is like an HO3 policy but for folks who have mobile or manufactured homes.
- Modified Coverage: This policy ensures older homes with replacement costs that outweigh their market value. It offers coverage for 10 named perils.
Consider what kind of home you have including its value, location, and what personal belongs are inside it. Some people feel like they can get away with less. The problem is when disaster strikes and they receive far less than their home is worth. This is why we recommend the comprehensive coverage plan. That way, you have peace of mind that your home, belongings, and finances are secure no matter what.
These are not the only kinds of coverage you may need. For example, you may need personal liability coverage in case someone could get injured on your property. This is common if you own livestock or equine, lakes or ponds, or motorized vehicles like ATVs and four-wheelers.
Evaluate Different Insurance Providers
No matter what policy you decide is right for you, it is equally as important to find the right insurance provider. Research the various insurance companies, compare their individual policies, read the customer reviews, and even talk with their agents. It is too easy to end up in the wrong situation with the wrong company. Evaluate each independent agent and provider carefully. When your home burns down, the last thing you want is for there to be an issue with the insurance company.
Having a local insurance agency can prove invaluable. Companies like Dickey Insurance offer personalized guidance, aid in navigating complex policies, and give you peace of mind by providing the right coverage for you or your business in case of accidents and disasters.
Local agents provide personalized advice and service, offering quick assistance and tailored coverage options based on local regulations. Compared to large companies, they save you time by promptly addressing your inquiries and claims.
Additionally, they can potentially save you money by shopping around for the best rates and offering discounts for bundling policies, making them a valuable asset for your insurance needs.
Assess Policy Features and Benefits
There are a few additional things to consider when moving forward with an insurance policy. Consider dwelling insurance and personal insurance. Dwelling insurance covers anything permanent in the space, like the walls, roof, floor, and in-ground pool but nothing else. Whereas personal insurance covers the opposite, such as the things you would take when you move.
There is also specific natural disaster insurance. For example, do you need flood or tornado insurance? Many natural disasters are not covered in a standard plan. This is because not everyone needs something like flood insurance. But if you live in an area that may experience the occasional hurricane (like Houston, parts of Flordia, and other coastal areas) it may be something to purchase alongside your home insurance.
These are just a few of the many more things to consider when getting home insurance. We would highly recommend consulting with a professional like those at Dickey’s Insurance to make sure you have exactly what you need based on your home and location.
Consider Deductibles and Premiums
There is a lot of insurance jargon that can be daunting. When it comes time to choose a policy, one of the big things to consider is deductibles and premiums. A deductible is the amount of money an insured individual must pay out of pocket before their insurance coverage kicks in and starts paying for covered expenses.
Typically, insurance policies, such as health insurance or auto insurance, specify a deductible amount that the policyholder must pay before the insurance company begins to cover costs. Deductibles can vary depending on the type of insurance and the terms of the policy.
Then there are premiums. Premiums refer to the regular payments made by the policyholder to the insurance company in exchange for coverage. This payment is typically made on a monthly, quarterly, or annual basis, depending on the terms of the insurance policy. Premiums are determined based on various factors such as the level of coverage, the insured individual’s risk profile, and the insurance company’s pricing policies.
For a low monthly payment (premium) you will end up with a high deductible. Or, if you want a low deductible, you will end up with a high premium. It is essential to find the right balance for what you need.
Review Discounts and Bundling Options
One method of insurance involves bundling. Bundling in insurance involves combining multiple policies, like home and auto insurance, with one provider to receive discounts and streamline coverage management. Consolidating your home and auto insurance with one carrier often means enjoying a single deductible, ensuring cost savings while maintaining comprehensive protection for your loved ones and assets.
Bundling saves you time and hassle by providing a one-stop shop for insurance needs. Managing home and auto policies under one roof reduces paperwork, simplifies communication, and grants you the convenience of addressing inquiries and concerns in a single interaction. Additionally, bundling can extend coverage options beyond home and auto, potentially allowing you to insure multiple assets like rental properties, boats, and RVs under one policy, minimizing paperwork and deductible expenses.
We suggest asking about available discounts anytime you are looking for an insurance policy. It may work in your favor to bundle several kinds of insurance together.
Read and Understand the Policy Terms
An insurance policy serves as a formal contract establishing the terms and obligations between the insurance company (the insurer) and the individual, business, or entity being insured (the insured). This document delineates the scope of coverage, exclusions, and the respective responsibilities of both parties in the event of a loss. Taking the time to thoroughly read and understand your insurance policy is crucial, as it enables you to assess whether the coverage provided adequately meets your needs and expectations.
Far too often, individuals purchase insurance policies without fully comprehending the extent of coverage, the exclusions that may limit or negate coverage, and the conditions that must be met for coverage to apply in the event of a loss. However, by reviewing your policy, you gain insight into these critical aspects to help you make informed decisions about your insurance protection.
A comprehensive understanding of your policy can help you address any discrepancies. This helps you avoid the risk of potential disputes or disagreements with your insurer during the claims process.
In essence, treating your insurance policy as a valuable resource rather than a mere formality can significantly enhance your ability to navigate insurance matters effectively. By familiarizing yourself with the terms and provisions outlined in your policy, you can better safeguard your interests and ensure that you receive the coverage you expect when it matters most. If you re ready to continue researching, the Insurance Information Institute is another great resource in learning all about insurance, security systems, filing a claim, building codes, and more!
Get Professional Advice
Insurance can be overwhelming. But it is an absolute necessity to best protect your home, finances, and family. At Dickey’s Insurance Solutions, we would love to help you navigate this process as smoothly and easily as possible so that you may have peace of mind for the future ahead.
Reach out to us now to get professional advice on choosing the right homeowners insurance for you today.
