Purchasing a home is a huge step and can be a stressful process. Your overall stress can be reduced by researching ahead of time. It can save you a whole lot of hassle if you learn about home insurance coverage and the information you will need to get a quote. Get a grasp on the quote process and get some great tips along the way.
What info you need for a home quote:
- Names, Current Address, Birth dates, and Social Security Numbers of the Home Owner’s
- What is the address of home to be insured?
- What year was the home built?
- Is it a one or two story home?
- Does the home have a full or partial basement? Is the basement finished?
- What is the square footage of home?
- Type of siding?
- How many bathrooms?
- Is the garage attached or detached?
- Does the home have a deck? What is the square footage?
- Is there a fireplace or wood burning stove?
- Do you want to schedule any items such as jewlery?
- How much liability coverage do you want?
- What deductible are you interested in?
These are the basic questions used to determine the replacement cost of your home. More questions will be asked to complete the application if you choose to purchase the policy. You can find most of this information on the Realtor listing of the home if it is a new purchase. Probably the most important question is the square footage of the home. It is also the most often unknown information. It is important to be as accurate as possible to ensure your home replacement cost is calculated properly. Image: Vichaya Kiatying-Angsulee / FreeDigitalPhotos.net
Standard Home Insurance Coverage
- Coverage A – Dwelling Protection This is the amount the home structure itself is insured for.
- Coverage B – Other Structures Protection This coverage is automatic whether you have a detached building or not. It is there for future use and includes coverage for fencing.
- Coverage C – Personal Property Protection All of your contents fall here. It includes contents in detached buildings. It also extends to items off your home premises up to a certain percentage of coverage.
- Coverage D – Loss of Use Protection Can’t live in your home due to a claim? This coverage will put you up in a hotel or other living arrangement until your home is back to normal. Many policies offer an unlimited dollar amount up to 12 months, but some use a percentage or fixed dollar amount.
- Personal Liability – Each Occurrence This coverage is only good for people injured on your property who do not live in your household. Personal liability can payout for things like dog bites and slip and fall accidents.
- Medical Payments to Others This coverage comes in handy for minor accidents which occur on your property. It is also only available to people who do not live in the household. Medical payments payout before personal liability. This coverage is intended to reduce personal liability claims.
Other things to consider when getting a home owners insurance quote:
- Deductible: It is up to you to choose your deductible. The most important thing about choosing a deductible is remembering what it is so you can plan for it. Michigan home insurance policies often offer deductibles in increments of $500 or sometimes even $250. Most policies nowadays start at $500 and some have even increased to $1000. Just remember, the higher your deductible, the lower your insurance cost.
- Other Coverage: Ask about other coverage including backup of sewer and or sump pump, increasing jewelry or firearm coverage, and identity theft coverage. Many home insurance policies can vary on other specific coverage such as trees falling on your property and food spoilage. Ask about these types of coverage. Some might be included in your home owner’s policy package and some may need to be added on if you want it.
Hopefully you will have an experienced insurance agent to guide you through the home owner’s insurance quote process. If this is your first home purchase, there is a lot you are going to need to learn. Home insurance is not something you want to be passive about. Spending a little extra time now to go over everything regarding protecting your home, can save you big time in the future. The more you know about your policy, the more likely you are to be covered properly.