So you just bought a new home, congratulations!
Now the mortgage company is on your back about getting homeowners insurance because it’s a requirement that you agreed to.
Finding one should be that bad, right? After all, we have the internet at our fingertips!
Well, not all insurance companies are created equal, and not all policies are going to be worth the money you spend.
If you have to spend money on insurance, it might as well be one that will be reliable if the needed ever arises to make a claim.
What to look for in insurance for your home
There are a few things to pay attention to shopping for home insurance as far as terminology are concerned:
- Dwelling Coverage – the “home replacement” coverage listed on the policy is meant for just the value of your actual structure. If you are buying insurance for a property that is in a high-demand area, such as a downtown or beachfront, then you’ll find that the coverage will not go all the way up to the amount that you actually paid for the property. It will only cover the value of the actual house, not the land.
- Disqualifier Clauses – There are certain clauses, depending on the insurance company, that may disqualify your home for coverage. Some of those may be if there is a trampoline on the premises, “vicious” animals, such as a bulldog, and a few other things. These are questions that will come up while trying to sign up for the policy and they may have to reject it or change your premium.
- Premium – When it comes to premium for the homeowners insurance policy, generally that means for the year, not month. Most policies are paid each year in advance. However, the premium will change depending on how old the home is. If it’s a brand new home, the amount will generally stay the same between 3-5 years, and then after that it will rise in price as the risk of the home actually being damaged increases. For homes over 10 years old, we’re looking at a significantly different premium than for a brand new home.
In addition to these items, you’ll want to double check what types of catastrophes are covered with the policy. For example, the home insurance is not flood insurance, so you’ll want to get separate coverage for that. But before you do, you want to know exactly what your policy will cover, such as wind or hail, or any types of water damage if at all.
But home insurance is a scam, right?
Well, when it comes to insurance companies, there are some good ones, and then there are the ones that really suck.
Insurance in general is one of those things that society thinks is overall a scam.
I mean, the current state of our healthcare doesn’t really instill much confidence in us.
But when it comes to your home, the roof over your family’s head, and one of the largest assets for most middle-class citizens, catastrophes happen… and quite frequently.
Homeowners insurance will have to pay out on claims where homes have been legitimately damaged or have full loss of use.
And the reason we get insurance of any type is for catastrophes.
Your health insurance isn’t there to help you have cheaper co-pays, they are there for those catastrophic events like heart surgery, cancer, accidents, etc.
It’s the same for your house. Your home insurance is for when your house needs open-heart surgery.
You really don’t want to be stuck with the bill (mortgage) when your home is in pieces and completely useless and can’t be sold.
So, what’s the recommended home insurance company?
Well, to put it simple:
For Texans, we recommend using Homeowners of America Insurance Company.
The top representative for that company is Rockland Insurance Agency, who are essentially a broker for multiple types of insurance and many different insurance companies.
They generally work with the best in the insurance industry.
Rockland is one of those insurance brokerages that prioritize internal culture and customer relationships, and they are one of the leaders in latest technology… something that the industry lacks sorely.
Because of that, we highly recommend contacting Rockland for questions regarding home owners insurance and what they recommend for you to do.
Most homeowners that have worked with them, whether it’s a new build or existing home, have had nothing but positive things to say.
Why not get in touch with them and take care of your concerns?