So you’ve finally found the home of your dreams, and you’re getting ready to sign the paperwork. Whether your insurance broker has informed you about homeowner policies or not, it’s also time to compare home insurance policies. Don’t let the excitement of the moment keep you from taking the time to compare home insurance policies. It’s vital that you’re realistic about assessing your new home’s location, as well as your financial position, when requesting quotes.
State Requirements for Home Insurance Policies
Carefully review the state requirements for home insurance policies and how they affect your new purchase. For example, if you live in a state that’s frequently hit by hurricanes, you’ll probably need to insure your home against hurricane damage. The same goes for regions that suffer from floods and earthquakes. Even if home insurance policies are not required to cover these perils, it’s still the smartest course of action if homes in your area are periodically at risk from these types of natural disasters. When determining the amount for which you insure your home and possessions, request quotes for their total replacement value, not just the cash value.
HO-2 Home Insurance Policies
Most home insurance policies are HO-2 types, which are very broad homeowner policies that cover homes and the contents they contain against sixteen perils, including weather damages, vandalism, and burglaries. Depending on the type of home you buy and its location, you may or may not need additional insurance for natural disasters. Once you’ve received a number of quotes for home insurance policies, review them carefully and choose the one that offers you the best coverage for your situation.