Home insurance protects you against financial losses due to unfortunate events like storms, fires, and vandalism. It also guards you against liability if a member of your household accidentally injures someone or damages their property. Below are some key do’s and don'ts for buying this essential risk management tool.

Do:

Choose full replacement value.

Instead of insuring a dwelling for the market value or outstanding value of your home loan, insure it for the full replacement value. Contact a builder and ask them for an estimate of the cost to rebuild the structure from scratch, then buy a policy that covers that amount. This ensures you can rebuild if something catastrophic happens. Otherwise, you could find yourself paying out of pocket.

Discuss your policy with an agent.

An experienced agent offers invaluable advice when designing a home insurance policy. For instance, if the agent determines you are risk averse, they might suggest raising your liability limits and lowering your deductible. These two steps could save you an enormous amount of money if a successful—or even a frivolous—lawsuit is filed against you for property damage or personal injury.

Don't:

Let price be your guide.

Never base a home insurance decision solely on price. Cheaper policies may offer much less protection than ones that cost only a few more dollars per month. For instance, a lower priced policy may have higher deductibles and lower limits, or it may have important exclusions that a competitor's policy does not.

Forget to shop around.

Ask your agent to get at least three quotes from different insurers. Different carriers specialize in different types of insurance and could offer lower rates or better coverage for the same amount. When comparing quotes from different companies, don't look just at the monthly premium; look for the best value.

For expert assistance designing a home insurance policy, contact Beadle Insurance Agency in Lubbock, TX. They've been helping customers throughout the region for more than 40 years, specializing in home, life, motorcycle, boat, and auto insurance. Visit their website to view location details and office hours, or call them at (806) 385-3426 to request a quote.