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Homeowner’s insurance is designed to help you recover quickly should an unexpected event occur. However, you must select the right policy to ensure your property and finances are truly protected. Since wading through the many coverage and carrier options can be a challenge, it’s important to know what you’re looking for and which errors to avoid before you start the shopping process. The following tips will prepare you to make a more informed buying decision.

Do:

Know how much insurance you need.

Your mortgage company will only require that you carry enough insurance to cover the amount you owe them. Choosing coverage based on this requirement rather than the value of your home is likely to leave you seriously underinsured. Should a disaster strike, you wouldn’t have the funds necessary to repair or rebuild your home. Thus, it’s best to calculate the total replacement cost of your house and insure it for this amount.

Find out exactly what a policy covers.

homeowners insuranceYour homeowner’s insurance is meant to protect you from a number of perils, including fire, wind, hail, theft, and vandalism, but there are also many events excluded from coverage. Take the time to learn exactly what a policy does and doesn’t cover so you aren’t unpleasantly surprised when filing a claim and you can identify if there is a need to extend your coverage.

Don’t:

Forget about your high-value possessions.

Standard homeowner’s insurance policies will pay for the replacement of your personal possessions if they are damaged or stolen but only up to a certain limit. If you own expensive items, such as jewelry, electronics, artwork, musical instruments, and firearms, it’s likely you will need to purchase separate endorsements to ensure you have coverage for the additional value.

Reduce coverage to lower your premium.

Many homeowners make the mistake of reducing their coverage in an effort to make insurance costs more manageable. A better strategy is to buy sufficient coverage and talk to your agent about other ways to lower your premium. Often, companies will offer discounts for setting a higher deductible or bundling multiple policies.

 

Insurance can be complicated, and when it comes to purchasing coverage for your most valuable asset, you want to make sure you have adequate protection. You can rely on State Farm® Insurance Agent Craig Giovani for sound advice and help choosing a policy that suitably fits your unique needs. Based in Mebane, NC, he provides residents from Raleigh to High Point with high-quality homeowner’s insurance and a range of other coverage solutions to support financial security. Call (919) 300-5911 to discuss his offerings, or visit him online to request a free quote.

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