During the process of applying for a mortgage and purchasing a home, you will need to shop for homeowners insurance. This is necessary before you can take out a mortgage, and is also important for protecting your investment.
Rates as well as quality of policies can vary from one insurer to another. For that reason, taking the time to compare policies and quotes is important. To help you find a homeowners insurance policy that is right for you, let’s go over some things that are important to check into as you compare insurers and policies.
6 Factors You Should Look for When Choosing Homeowners Insurance
- The coverage you need. Between policies, you will notice differences in terms of both the types of coverage and the amounts of coverage. If you take the time to compare policies across different companies, you will encounter even more variation. On that note, you will also want to compare deductibles across plans. If you are on a tight budget, it might make sense to just shop for the least expensive policy you can find. But if you have some wiggle room in your budget, you should look for a policy that provides you with the best coverage at the most affordable rate. That policy may not be the cheapest one out there, but it is the one that will offer you the biggest bang for your buck.
- Rates you can afford. If you find several policies that are roughly comparable, it does make sense to pick the one with the most affordable rate.
- Company background. If you are going with a major insurance provider, you probably already know most of what you need to know about the company’s background. But if you are choosing a smaller insurer, you should do some research into the company’s licensing and history.
- Claims process. Hopefully, you will never need to actually make an insurance claim. But let’s say something does happen, like a tree falling on your roof or someone breaking into your home. At that point, your choice of insurance company and policy is going to have a significant impact on your life. So that you are not caught by surprise, do some research into the typical claims process of the insurance company you are thinking of using. Check to see whether the insurance company outsources the claims process or handles it in-house. Also, find out how quickly they usually process claims and what kinds of hoops you might need to jump through along the way. By doing your research, you can pick an insurance company that will make your life easier if you have to make a claim rather than adding to your challenges. Plus, since you will already have an idea how the claims process works, it can go more smoothly when that day arrives.
- Customer service. Something else to evaluate when selecting an insurance company is the quality of customer service. This is not something you need to entirely leave up to chance. You can check it out for yourself while you are comparing policies across companies. Try contacting the insurance company through multiple methods to ask them questions. Get hold of them on the phone, or try contacting them via email or live chat. The right company will provide you with fast, friendly, knowledgeable support. That is the kind of service you will be looking for if you need to file a claim.
- Reviews. One more thing you can do when you are comparing insurance companies and policies is to look up customer reviews for any companies you are considering. Particularly for larger companies, it should be pretty easy to locate a large amount of detailed feedback. Do not just look at the ratings in terms of stars. Actually skim through a number of reviews, both positive and negative. Pay particular attention to any feedback on the claims process and customer support.
First Residential Mortgage Can Answer Your Homeowners Insurance Questions
Choosing a homeowners insurance policy is just one of the steps involved with the home buying process, but it is an important one.
Do you have questions about homeowners insurance? First Residential Mortgage can help. We can also answer questions about mortgage insurance, which you might also need in some scenarios. Additionally, we can provide you with general advice for budgeting for a home purchase. To get started, please call (540) 838-5868 to schedule your consultation. We work with homebuyers in Blacksburg and throughout Virginia.