Home insurance is a type of insurance that protects your house, personal belongings, and your other assets in case of an unexpected event. Unlike auto insurance, this is not required by the law. However, many mortgage companies require having this before giving you a loan.
How to determine the type of coverage that you need
There are different types of home insurance policies that you can avail, depending on the kind of coverage that you need. To give you an idea, it should be enough to cover rebuilding and furnishing your home in case it gets totally wiped off.
Consult a home builder to get the estimate of how much you’d need to rebuild it. That estimate would serve as your basis for the replacement coverage.
If there are unique or expensive details in your house, make sure to point them out so that they’d be included on the replacement cost. After determining your home’s replacement cost, you’d be able to decide on the type of coverage that you need.
How to shop for your policy
Just like any other major purchase, you should first shop around before making the decision. Knowing your options would allow you to compare each company’s offer and, therefore, would let you make a better decision.
There are different kinds of salespeople and home insurance companies that you can talk to for your home insurance inquiries.
- Direct sellers – As the name implies, they sell directly to the consumers. The USAA, GEICO, and Progressive are some examples of this.
- Captive agents – These are the agents or salespeople who only sell the products of one insurance company.
- Independent insurance agents – These are the agents or salespeople who sell products from different insurance companies.