Planning a move? Here’s what you need to know about home insurance.
Are you bubble-wrapping belongings, viewing homes, and scheduling potential home movers? If you’re in the market for a new home, there’s a lot to remember to do. Before you start signing documents, be sure that you know what you’re looking for and getting when it comes to homeowners insurance.
Know what coverage you need. Homeowners insurance typically covers:
- The building and structure
- Your belongings
- Liability protection
- Additional living expenses
Aim to buy enough coverage to replace your home if it’s destroyed, all at the current value. Talk to your insurance agent to determine how much coverage this entails.
Perfect your credit score. Insurers will look at your credit score when deciding whether to sell you insurance and at what rate. Check your report to see if there are any mistakes or anomalies that you need to correct.
Collect details about the house. You’ll need to know specific features about the house: the square footage, number of bathrooms, materials used for the roof and exterior walls, age and condition of the house, and condition of the decks and garages. This will help to determine how much you’ll need to pay for coverage.
Conduct a home inventory. Record and note your belongings around your home so that you have an inventory handy, should you need to file a claim in the event of a loss. Expensive items such as jewelry, computers, and artwork may require additional coverage.
Consider additional coverage. Typically, flood insurance and earthquake insurance are sold separately to a homeowners insurance policy. If your new home is at risk, you’ll want to consider purchasing additional coverage.