Buying a house should be fun and exciting. However, since it’s the most significant investment you will likely make, you should navigate each step of the process carefully to limit your financial risk. This is especially true when getting home insurance. Having the right coverage is crucial if you experience a major loss. The following tips help ensure you have adequate protection and keep you from overpaying on your premium.

Do: 

Purchase sufficient coverage. 

Underinsured homes are more common than most realize. To avoid finding yourself with insufficient coverage when it’s too late, determine how much you need before you start shopping. Begin by figuring out the amount it would take to rebuild your home from a total loss. Generally, you should choose replacement coverage, as this won’t take depreciation into account, as actual cash value policies do. Then, conduct a thorough inventory of your possessions to factor in the cost of replacing them.

Know what’s included in a policy. 

Insurance agents should tailor home insurance policies to each homeowner’s circumstances. Review all the details of a policy before settling on one. While most plans include liability and property coverage, the limits may not be high enough to manage your risk effectively. In this case, you should add endorsements to increase the limit.

Policies typically exclude damage from events such as floods and earthquakes. If you live in an area that’s prone to disasters, you must buy separate plans.

Don’t:

Choose a policy based on price.

While it is tempting to purchase the least expensive policy you find, this can leave you at a severe disadvantage should you file a claim. In addition to choosing the right coverage, select a reputable provider. Look for an insurer that is financially stable and has an excellent reputation for handling claims and policy payouts promptly.

Forget to ask about discounts.

There are usually several ways to lower the cost of home insurance. Providers extend savings for many reasons, including bundling policies,  raising the deductible, and paying the year’s premium in full. You may also get a discount for installing safety and security features or upgrading the roof, HVAC system, wiring, and plumbing. Ask your agent which discounts apply to you.

Whether you’re a first-time homebuyer or looking for better coverage, Flathead Farm Mutual Insurance Company can provide what you need. They evaluate each client’s unique situation and customize home insurance policies to offer maximum protection. Based in Kalispell, MT, they’ve been helping residents throughout the Flathead Valley secure high-quality products at the lowest rates for more than a century. Call (406) 752-7500 to request a quote, or visit them online to learn more about their services.