A place to call your own. Buying your first home is a thrilling achievement, but it’s also one of the biggest financial commitments you’ll ever make. You need a home insurance policy that adequately protects the value of your investment. First-time homeowners are often intimidated by the variety of coverage options, so here are some key factors to consider before choosing a policy.

4 Elements to Consider When Buying Home Insurance

1. The Value of the Policy

Home insurance policies are either based on the retail value of the home or the cost to rebuild if it’s completely destroyed. In most areas, new construction costs are higher than the market value of your property, so many prefer to choose a policy based on the replacement value.

2. The Exclusions

Some perils are specifically excluded in many home insurance policies, while coverage for certain types of property is limited. For instance, a policy might offer $40,000 in personal property coverage but only $1,000 for jewelry stolen or lost in a disaster. Choose a policy with coverage limits high enough to cover your artwork, firearms, and other valuables, or consider purchasing an additional endorsement.

3. Bundling Policies

Most insurance companies offer significant discounts to customers who purchase both car and home insurance. When shopping for quotes, ask your agent to find out whether you can save by transferring your other policies to a new carrier.

4. The Deductible

A deductible is how much you’ll be expected to pay out-of-pocket before your carrier will cover a claim. Generally, higher-deductible policies will have lower monthly premiums, which can save you thousands of dollars over the years. Just make sure you can afford to pay the deductible before choosing a policy.

With over 20 years of experience and relationships with several of the industry’s leading carriers, Seeman Holtz of Boca Raton, FL, offers high-quality coverage and personal attention to homeowners across the country. Their highly experienced agents are dedicated to protecting what you value most and ensuring your assets are protected from the unexpected. Visit their website for more on their home insurance services, follow their Twitter for updates and news, or call (800) 991-3592 to speak with an agent and request a free quote.