Most lenders/mortgage companies require homeowners insurance; Some rental properties do also, and if they don’t it’s still your best bet to have coverage. This article is geared more towards those trying to choose the best coverage for homeownership.
Shopping Around is a Must
Too little insurance can really leave you in the hole if an emergency occurs. Too much insurance isn’t wise either (equalling your house’s value) since the market value of your home can fluctuate. Paying for more insurance than you realistically need is just a waste of money. Remember, your insurance also includes your land, in addition to your home.
Make Sure Your House is Properly Valued for Rebuild
You need insurance that will cover replacement or rebuilding of your home, while factoring in inflation. A quick Zillow search for your property can give you a good idea of it’s value. If your house is similar to others nearby, their Zestimate can provide a fairly accurate estimate of your home’s worth. You can also research the average price for new home builds in your area. The national average cost for new home builds as of 2021 is around $300k.
According to a study done by LendingTree, in Georgia, the average cost of homeowner’s insurance is around $1,700 per year. This, of course, fluctuates based on the value of your home, and what options an insurance provider offers.
Just the Basics, or More?
Basic Homeowners insurance will cover things like hail, wind, smoke damage etc. However, there are definitely some add-ons worth considering, though they usually come at a premium price.
Depending on your state, you may have to pay a separate deductible, or buy stand-alone coverage, for things not included in basic homeowners insurance; i.e. earthquakes, flooding, sewage backup, or a failure to do basic maintenance. Even water and mold damage can be additional.
Deductibles and Your Insurance Premium
Another key element with any insurance to keep in mind is your deductible. How much is it going to cost you, out-of-pocket, when filing a claim? Anytime you file a claim against your insurance policy, you’ll need to pay a portion of that claim, your deductible. Many homeowners insurance policies typically have a deductible of around 1% the value of your home.
Some insurance companies offer the option to set your own deductible, which can raise or lower your overall insurance premium based on how much, or how little, you want to make your deductible payment.
Price Isn’t Everything
When it comes to choosing a policy though, it’s not just about the amount you pay. It’s best to find out the company’s reputation when it comes to their customer service and how they handle customer complaints and claims.
According to Consumer Reports magazine, these are some of the top things to look for besides the price of your insurance policy:
- Ease of reaching a agent to handle a claim
- Agent courtesy
- Promptness of response and attentiveness in handling your claim
- Simplicity of the claims process
- Damage amount: Satisfaction with company’s estimate of dollar amount of damages
- Timely payment: Satisfaction with timely payment by insurer
We Can Help When You Need to File a Claim
If you choose R4 Restoration for your damage claims you will have certified technicians to assess your damage and rebuild cost and an ally in understanding your insurance company. Remember, no matter what insurance company you have, when you file a claim, their goal is to keep their own cost down, despite what you may need for your home.
We have years of experience dealing with insurance agents, brokers, and adjusters. We want to do the best on behalf of you, the homeowner, keeping your interests in mind every step of the way.