A homeowner insurance policy covers you financially when an event, such as a fire, storm, or theft, results in loss or damage to the property. It is a major part of your financial plan, so choosing the right policy and insurer is essential. Below are five crucial tips on buying home insurance that best fits your needs and budget.

5 Tips for Buying Home Insurance

1. Buy the Right Amount of Dwelling Coverage

When insuring your home, buy enough to cover the replacement value rather than the outstanding mortgage amount or the market value. Ask a builder for an estimate of costs to rebuild if the home is destroyed. This will fully protect your property when disaster strikes.

2. Save by Bundling Policies

Save money by "bundling," or purchasing homeowner insurance from the same company who sells you auto, health, or life insurance. Insurers are usually willing to discount prices to get more of your business.

3. Ask About Discounts

Ask about other discounts that you qualify for, as well. For instance, you often save on insurance premiums by installing a fire safety or security monitoring system in the home.

4. Choose a Highly Rated Insurer

When selecting an insurer, do enough research to find one that's highly rated and provides good customer service. Some insurers make it easy to pay bills online, file claims, and update the policy when necessary. Moreover, you want an insurer who pays claim amounts promptly and without undue dispute.

5. Understand Your Deductibles

The deductible is the amount you must pay on a claim before the insurer contributes. The deductibles for some claims are a set dollar amount, while others are a percentage of the total cost. Understand the deductibles in advance, so you know how much to pay out of pocket.

At Farmers Insurance Group in Mountain Grove, MO, we pride ourselves on our ability to provide customers the finest insurance products and most comprehensive customer service. Talk to one of our experienced agents if you have questions about homeowner insurance. Call (417) 926-7900, or visit our website to request a home, auto, health, or life insurance quote.