How to Pick Home Insurance

Protect your biggest asset.

Chances are your home is the biggest single investment you will ever make, and protecting that investment is critical. No matter where you live or what the value of your home, you need to have sufficient homeowner's insurance in place to cover your property in the event of a fire or other disaster. Your homeowner's insurance also provides important liability protection in the event someone is injured while on your property. As with other forms of insurance, shopping around and comparing coverage carefully are the best ways to get a good deal.

Instructions

1. Contact the company that handles your automobile insurance policy and ask about any multi-policy discounts they have available. Many insurers provide significant discounts for clients who insure their homes and their cars with the same company.

2. Make a list of any special coverage you need your policy to include. If the area where you live is prone to floods or earthquakes, you will need to consider that additional coverage because homeowner's insurance policies do not typically cover water damage or damage caused by earthquakes.

3. Create a list of features in your home that could entitle you to discounts. Things such as deadbolt locks, hard-wired smoke alarms and burglar alarm systems can lower your premiums. Ask about any available discounts when you contact each insurance company.

4. Decide how large a deductible you are comfortable with before you start shopping. Raising your deductible can significantly lower your premium, so self-insuring for small home repairs is always a good idea.

5. Gather all of the documents related to your home, including the estimated value of the property, any safety and security features, and any additional insurance needs you may have. Contact each insurance company and request a quote for a homeowner's insurance policy.

6. Compare rates carefully and review the terms and conditions of each policy. Select the policy that provides you with the most comprehensive coverage at the lowest price.

References

• Federal Citizen Information Center: Homeowner's Insurance