How to Buy Home Insurance

Buying home insurance is one of the smartest decisions that you will ever make, and the number of companies providing this type of coverage is vast. Purchasing is as easy as picking up the phone, but first you will need to know who to call.

Things You'll Need

• Insurance company referrals from friends and family
• Video and photographic proof of your home and personal property
• Home and personal property assessment

Instructions

1. Assess your situation. The insurance company will want to know what it is that they will be insuring. An agent will ask questions about the style home you live in, the year it was built, total square footage, and if your home has an alarm system. She will also want to know what types of recreational equipment are on the property. Having all of this information on hand when placing the call will make the whole insurance experience go much smoother.

2. Research the homeowners insurance providers in your area. Word-of-mouth referrals from family and friends is a helpful way to get started. And websites like INS Web can also provide quotes and comparisons between the different companies.

3. Contact the insurance company of your choice and ask to speak to an agent. After you are completely confident that you have done your research, and have all of the basic information concerning your home, place the call.

4. Ask as many questions as you need to. Make sure you are aware of your deductible, and any out of pocket expenses that you will incur, if you ever need to file a claim. Also find out if there are any extra endorsements that can be added to your policy to ensure that your home is completely covered.

5. Be honest with your agent if she asks whether or not you have ever filed a claim. Underwriting will find this information out anyway, so you might as well tell the truth. You want to establish a good relationship between your new insurance company and yourself, so being honest is a good start. Not being truthful about everything, will only cause your rate to increase later when the truth is revealed. In some cases, the scenario can also lead to full cancellation of your policy.

6. Learn more about coverage. Will your home be insured for lightening, wind or water damage? If you have a well pump or septic system, this information will be very important. Will you need any water damage endorsements, such as sewer backup? These are important things to know, and only your agent can answer these questions for you.

7. Call your agent yearly, preferably around the time that the policy renews. New endorsements are adopted throughout the year, and your insurance agent usually will not call you to let you know about them. These endorsements add extra coverage to your policy for various damages. So, contacting your agent yearly and asking for this information is a wise decision. During this phone call it is also a good time to ask about any savings that you may be entitled to. Discounts sometimes become available, and it is a good idea to have your policy reviewed from time to time to see if you qualify for any of them.

8. Video tape and photograph the exterior of your home, the interior and all of its contents. The number one mistake that many homeowners make is not documenting investments. Large ticket items, clothing, furniture, computers and any other personal possessions will need to be replaced along with the house itself. Having this visual aid will help you prove what personal items you have lost due to a personal disaster. Label the videos and photographs with a date and time stamp, and store them somewhere safe. Your agent may need them as proof for a claim settlement.

9. Contact your agent if you have done any home improvements. You want to make sure that everything that you have spent your hard earned money on is insured for its proper value. Additions, basement refinishing or anything else that qualifies will need to be protected.

Tips & Warnings

• Remember to inform your agent whenever you bring a new dog into your home. You want to have the proper coverage in case of a dog bite situation.

• Having your automobile and homeowners policy with the same company, usually saves you money by providing a discount.

• Never assume anything when it comes to insurance. If you are unsure of anything pertaining to your coverage, discuss it with your agent.