Choosing The Right Homeowners Policy

mineo salcedo house with hurricane damageKnowing what insurance policy to purchase can be quite a task if you are unfamiliar with the market. As one of the largest assets Americans own, it is recommended that you carry adequate coverage against a loss to your home.

Homeowners insurance will mitigate the risk of loss from various causes of loss such as, hurricanes, theft, fire, and water damage. The standard policy will generally cover property structure, personal property and provide protection against liability for accidental damage to other people’s property or injured invitees.

Do your homework in choosing a policy; you have to make sure you can rely on the company you choose. Here are some tips to help you through the process.

  1. Most states have websites that contain information to help indicate an insurance company’s health. The state websites will contain information such as complaints, insurance company rating, and fraud reports. What matters is that the insurance company provides service quality, customer satisfaction, and has the financial capacity to meet its obligations.
  1. Decide the amount of coverage you need. If you have a mortgage, the lender may require you to carry policy limits that cover the property to your loan amount. Keep in mind that the better your coverage the less you will have to pay out of pocket. The policy rate you pay will depend on various factors such as the location of the property and the amount of coverage you select for your home, personal property and contents.
  1. Chose a deductible that you would be comfortable paying out of pocket if you file a claim. A deductible is the amount you have to pay out of pocket for every claim you file.
  1. Some causes of loss are not covered under a homeowner’s insurance policy. For example, floods are not covered; you will need to purchase a separate flood policy. It is recommended that you purchase a policy if your property is located within a high flood risk area. If this is the case, some lenders may require you to purchase a flood policy.
  1. Shop around for policies. Note that you are not required to purchase a policy from the insurance company your lender recommends. Visit several agents and get a couple of rates from different insurance companies to insure you are receiving the most affordable rate as well as one that meets your needs.

If needed seek assistance from an insurance professional. A qualified insurance agent will conduct a thorough analysis of your insurance needs. Check with your agent every year to insure your policy is providing adequate coverage. In the unfortunate event that you suffer a loss which requires that you file a claim, do so immediately after contacting someone who is knowledgeable about property insurance policies. The professionals at The Mineo Salcedo Law Firm have over 50 years of combined experience in the insurance industry and would be happy to discuss your claim with you. Call (954) 463-8100 for a free consultation.