4 Important Home Insurance Facts to Know When Shopping for a New Policy

Getting a new home insurance policy may not be the most exciting task, but it is vital to protecting your family and your property. Not to mention, all mortgage lenders require you to carry home insurance.

Whether you just purchased a new home or your current policy no longer fits your needs, you should shop for the best home insurance policy to fit your specific needs.

To help you do that, let’s take a look at some of the most important things you need to know about home insurance before starting your search. Some of them may surprise you.

#1 Home Insurance Coverage Varies Depending on the Policy

It is important to know that policies can provide varying levels of coverage. A typical home insurance policy covers your house, your belongings in it, and your liability for any injuries or property damage caused to others. Additional living expenses may also be covered by some policies, in the event that you cannot live in your home while work is being done to it after a natural disaster or accident.

When comparing home insurance policies, think details, details, details. Read each policy in its entirety and be sure you understand exactly what type of damage it protects against, the compensation it provides, the deductible amounts, etc.

home insurance policy

#2 Understand What is Excluded from Each Policy

Floods, earthquakes, termites, mold, and wear and tear are amongst the many types of exclusions outlined in most policies. But there are additional coverage options you can add to your home insurance policy — like flood insurance — to get the coverage you need for those occurrences.

Depending on your location and proximity to flood zones, you may be required by your mortgage lender to purchase flood insurance through the National Flood Insurance Program.

And, along the coast in some areas in Florida, home insurance policies exclude wind damage. But you can shop for a wind damage policy to best fit your needs and local requirements.

#3 Difference Between Rebuild and Market Values

Oftentimes, a home’s market value is less than the cost to rebuild the home. That being said, a home insurance policy that only covers the market value of your home will not provide full coverage for rebuilding it in the case of a total loss.

Keep this in mind as you read the fine details of any policy, as it could potentially mean having inadequate insurance should you need to rebuild the home.

home insurance coverage

#4 Policy Pricing Can Vary Greatly

Although you may think that two policies offering the same coverage, exclusions, deductibles, etc. would be the same price, that is incorrect. This is why it is so important to shop around for not only the best policy for your needs, but also for the best price. You need to consider both when making your decision.

When comparing prices, be sure you are comparing apples to apples to really understand the cost difference. It will just lead to confusion if you try to compare prices of two completely different policies.

Shop The Best Home Insurance for You

At GWK Insurance, we know shopping for home insurance can feel daunting. But we are here to help you shop for and purchase the best possible home insurance policy to protect your home and family. Contact us today to help you find the best quotes for your insurance needs.