Homeowners insurance policy

How to Shop Homeowners Insurance Companies

You spent months trying to find the perfect home in Denver. Now that you’re finally under contract, it’s time to shift your focus to homeowners insurance. We get it — you’d rather plan your housewarming party or browse paint colors than shop homeowners insurance companies.

The reality, though, is this policy serves as protection for your largest investment. Standard home insurance covers everything from loss of personal belongings to structural damage. Yet many homeowners gloss over the importance of such insurance and end up with a policy from a shady company.

Here are some tips for choosing the right homeowners insurance company for your situation.

Get multiple quotes

Think back to when you decided on a mortgage lender. Chances are you asked each candidate a number of questions and went with the one who offered the best deal. We suggest taking a similar approach with home insurance companies, as coverages, deductibles, and limits differ across the industry.

Research company ratings

Looking to verify an insurer’s reputation but don’t know where to start? Esurance recommends exploring A.M. You’ll be able to gauge how well an insurer meets the needs of its customers compared to others. Generally speaking, a higher rating means happier customers. 

Think about bundling

Those hoping to save the most money should consider bundling their insurance. If you’re content with your auto insurance provider, see if bundling would offer additional savings or a multi-policy discount. Those extra dollars that remain in your bank account every month can provide breathing room once you have a mortgage.

Ask about behavior discounts

Home insurance companies reward customers who are proactive about their safety. Get in touch with the insurers on your list and learn about their discounts. You may qualify for a cheaper premium just by installing smoke detectors or a security system.

Have a claims history report

Let’s say you recently bought an older home that has damage from a fire or flood. While the residence might have an undeniable charm, this damage could keep you from obtaining homeowners insurance. That’s why it’s important to request a claims history report from the seller. If you’re on the fence between an older home and a new construction home, remember that new builds are usually in better condition and, in turn, could be cheaper to insure.

Which coverage is right for you?

Now that you understand the ins and outs of homeowners insurance companies, let’s discuss coverage options. Keep in mind that there are numerous policies available and that yours will likely be different from your neighbor’s. The insurer you choose will customize a policy based on your needs and budget.

Here are the steps you should take before signing off on your policy, as referenced from Progressive.

Note the limits on personal property and liability coverage

Coverage C under property damage pertains to lost or stolen properties and personal belongings. As a new homeowner, you’ll want to make sure that the limits on your coverage are sufficient to cover everything you own. Coverage E, on the other hand, protects you if someone suffers an injury on your property. Get in touch with your insurer if you aren’t comfortable with the $500,000 liability limit.

Check for exclusions

There is no all-encompassing homeowners insurance policy, regardless of how much you’re willing to pay. Be aware that earthquakes, mudflows, and landslides are excluded from nearly every policy. The same holds true for flooding. 

If you live in an area where these events are prevalent on a regular basis, contact your insurer and ask about protection for excluded incidents.

Know your deductibles

Your home insurance policy will include a deductible for property damage. Similar to car insurance, the deductible is the part of the claim you’re responsible for, so double-check the amount works with your budget. There’s also the chance your deductible is a percentage of your policy’s dwelling coverage.

Begin your home buying journey

Whether you’re buying your first or forever home in Colorado, you need a dependable real estate agent by your side. The team at American Home Agents has over 20 years of experience and understands what goes into meeting a client’s goals.

Of course, we do more than just help you find a home. Our award-winning agents go above and beyond to guide you through the entire home buying process. That includes assisting you while you navigate homeowners insurance companies. 

Contact American Home Agents at (303) 695-5900. 

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