Purchasing a home can be overwhelming, so it’s easy for first-time buyers to overlook the homeowner’s insurance process. But, if something happens to your home, homeowners insurance in Boardman can make or break you.
Before you just sign on the dotted line, read are four tips to guide you:
1. Contact at least three agents to compare coverage. Do your research to compare coverage and price and read customer reviews. Be sure you are getting the right type and amount of coverage. Shop for value, not the lowest price. Because you’ll primarily deal with insurance companies during times of misfortune, make sure the company you choose offers great customer service and fair claims reviews.
2. Include your insurance payments into escrow with your mortgage payments. Most homeowners add monthly insurance payments to their mortgage payment. The lender will pay your insurance premiums out of your escrow account. Many lenders prefer this option because it lets them know your insurance premiums are being paid, and their investment is well protected.
3. Make sure you’re getting sufficient coverage. The most important part of homeowners insurance in Boardman is the level of coverage.
Here are the most common levels of coverage:
- HO-2 – Broad policy that defends against the perils that are named in the policy;
- HO-3 – An even broader policy that protects against all perils except those specifically excluded;
- HO-5 – A Premium policy that typically protects newer, well-maintained homes and covers against all perils except those specifically excluded by the policy;
- HO-6 – Insurance for co-ops/condominiums, which includes personal property coverage, liability coverage and coverage of improvements to the owner’s unit;
- HO-7 – Similar to an HO-3 policy, but for mobile homes;
- HO-8 – Policy specifically for older homes, with similar coverage to an HO-2 policy, but covers actual cash value.
4. Understand the details of your policy. Before you make a decision when purchasing homeowners insurance in Boardman, understand these terms.
- Premium: This is the price you pay for insurance, usually annually or monthly.
- Liability Coverage: This coverage will pay medical or legal bills if someone is hurt on your property, usually due to negligence.
- Actual Cash Value: This kind of policy gives you the current cash value (with depreciation) for personal property or your dwelling.
- Deductible: This refers to the amount you must pay out of pocket before your insurance takes effect; the higher the deductible, usually the lower the annual premium.
- Riders: Also referred to as “endorsements” These can be included on your overall insurance policy to cover specific items such as expensive antiques, jewelry, and artworks.
- Replacement Cost: This is the kind of insurance that pays the full cost of replacing your dwelling or personal property, up to a maximum dollar amount.
- Personal Property: This is a physical property such as furniture, electronics, and clothing.
- Sub-Limits: Homeowners insurance in Boardman will include limits on certain types of personal property, but they’ll also have sub-limits.
Be sure you understand how all of these terms work together in your homeowner’s insurance in Boardman.
Call our office today at 330-336-9557 and get the right amount of coverage at the right price!