Homeowner Insurance: Things to Consider When Choosing an Agent and a Policy:

There are a number of reasons for which a person wants an insurance agent. Insurance covers many areas such as relocation to a new area; driving license related issues and several life events.  Experienced financial advisors will always recommend a yearly audit of insurance policy in order to assure that all the required coverage is provided.

An agent acts as an assistant who helps to insure your property. It is not necessary that you should have a permanent agent (like house physician or family lawyer). You can hire an agent to deal with life insurance, homeowner insurance, renter’s insurance,etc. In my view, the assistance of an agent is mandatory in business liability related insurance and building insurance.

The need for homeowner insurance is increasing every day. There are things to Consider when choosing an agent and a policy.   Let’s discuss those things in detail for a better understanding.

What to consider while choosing a homeowner insurance agent:

  1. Determine whether you need an independent agent

Generally, independent agents represent a bunch of companies and offer you the most suitable deals for you as per their knowledge of the market and your requirements. On the other hand, there are some agents who work for a particular company and can offer you the quotations of that particular company only. Both of these agents have some particular advantages. An independent agent can offer you many options while an agent, working for a particular company, has full knowledge of his/her company.

  1. Be assured about the reputation of insurance agents

Before hiring an agent, you need to investigate the reputation of the specific insurance agents. You can take the help of The Better Business Bureau, an agency that helps you to find out whether there have been complaints against the agencies you are targeting or not. Apart from this, you can also ask your relatives and neighbors for a recommendation.

  1. Which types of insurance your agent can arrange

Personal insurance like homeowner insurance can warn you against destructive financial losses. Apart from homeowner, auto and life insurances are also included in personal insurance coverage. Auto insurance saves you from the threats of legal responsibility due to an accident. This type of insurance also alleviates the financial loss from a devastated vehicle. Homeowners insurance is meant to protect your big investments such as your home and the articles contained in your home. Homeowner insurance also protects you from the legal responsibility issues due to any accident around the home. It is really important because it offers a variety of options.  Let’s find out what the homeowner insurance policies can offer:

  • You can claim for damage to your home, garage and other constructional property.
  • It supports for the loss of furniture and other properties or articles damaged due to any accident.

Apart from these, the homeowner insurance policy may include liability for physical injury and damage to property caused by you that harms others due to your negligence; liability for accidents that happen in and around your home and much more.

What to consider while choosing a homeowner insurance policy:

When you are going to choose a homeowner insurance offered by your agent you should keep certain things in your mind such as:

  • You should make your house insured except for the land with your house. If you forget to subtract the value of the land when determining how much to spend for a homeowner policy, you would have to pay more than the general pay scale.
  • You need to make sure that you are getting enough coverage to replace the things that are insured. Ignoring this fact is one of the common mistakes done by the homeowners. There are several other costly homeowners’ mistakes  that you should know well in order to avoid them.
  • You should ask about the special coverages that you require. You would have to pay additional charges for art antiques, cameras, computers, jewelry, musical instrument, rare and valuable stamp collection and much more.
  • You must know the rule that flood and earthquake damages are not included in the homeowners insurance policy.  In the case of a separate earthquake policy, the cost may depend on the likelihood of this natural calamity in your area. On the other hand, if you live in a flood-prone area, you can reap the advantages of National Flood Insurance Program.

Final words:

For most people, you must include homeowner insurance in your financial plan.  Life is not a bed of roses. Anything can come on your way to make it harder. You cannot stop them from coming into your life. But you can keep yourself prepared even for the worst situations. Herein lies the importance of  a trusted agent who will advise you.

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Arnold Smith

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