Carrying the right homeowner's insurance is essential because if something happens to your house, your policy will shield you from financial loss and ensure your life isn't severely disrupted by the incident.
Shop around and compare coverage - Mortgage lenders typically require borrowers to carry homeowners insurance coverage. Depending on where your house is located, you may also need additional protection, such as flood insurance. However, you aren't required to purchase a homeowners policy from a particular insurer. To get the best deal, you should shop around and compare customer reviews, prices, and coverage. Price shouldn't necessarily be the prime consideration; you should also consider value. Moreover, as you'll have to deal with insurers if disaster strikes, you should ensure your insurer has a good rating and great customer reviews.
Track your insurance premiums on mortgage payments - Consider combining your insurance payments with your mortgage check in an escrow account. Your mortgage lender will then pay your premiums (and typically your property taxes) out of the escrow account. Mortgage lenders prefer this alternative because it assures them that you're paying your insurance premiums and, thus, their investment is adequately protected. However, you'll likely need to pay for one-year insurance coverage before closing.
Ensure you are getting adequate coverage - One of the most important aspects of insuring your home is the kind of coverage you get. You should avoid overpaying. Here are the most common kinds of coverage:
Understand all aspects of your policy - Besides getting the right level of coverage, you should also understand all aspects of your policy before you buy it. Here are some common homeowners insurance terms that you should be aware of:
If you need a homeowners insurance policy that will sufficiently protect your home in King County, reach out to us at Humble & Davenport Insurance Brokers, Inc. today. Our team will help you find a policy that suits your unique needs.