While price may be a factor in your decision, you should also consider the following questions:
What is the value of your home? Your insurance agent documents specific characteristics about your home that increase or decrease the value. Does your home have an attached two car garage, custom kitchen counter tops, an attached screen enclosed pool, etc...? How much will it cost to rebuild your home to the way it was before a loss? The price on Zillow should not be used to determine your home's replacement cost. That number includes the land and desired location. Work with your agent to determine the replacement cost value.
What is the value of your personal property? The easiest way to visualize how much personal property you have is to picture what you loaded onto your U-Haul when you moved in. Basically everything that wasn’t attached to your home that you brought with you. For example; all furniture, TVs, clothing, computers, kitchen ware etc… Most carriers calculate your personal property using a percentage of your Dwelling. Check with your agent to see what is reasonable.
What are the potential risks your my area? Are you in a Flood zone, Hurricane prone area, Wildfire zone, high crime area, Snow and Ice climate area, history of sink holes, close to the coast, etc…? Insurance carriers take these risks into consideration when taking on the risk. If you are buying a new home, it’s a good idea to be familiar with potential risk in your area because premiums and coverage can be significantly influenced by the location of the property.
Am I paying for coverage I don’t need? Am I over insured? Are my deductibles too high or low? Evaluate your coverage and make sure your needs align with your current situation. Pay close attention to the policy limits and exclusions to ensure you are adequately protected.
Remember, the cheapest policy isn’t always the best; focus on comprehensive coverage that offers peace of mind. Focus on finding a policy that offers the right level of protection and peace of mind for you and your family. By taking the time to thoroughly research and compare your options, you can ensure that your home is well-protected against unexpected events.