Whether you recently purchased your first house or desire a new homeowners insurance policy, there are a few shopping tips to remember. All help you score the perfect coverage for your residential needs without paying too much or realizing post-accident that certain items aren’t fully covered. Let this guide get you started. 

Do: 

Review what each potential policy covers.

Compare policies from different insurance companies in light of coverage and price. Opt for the best comprehensive insurance policy, as most mortgage lenders require this type of coverage. 

Such homeowners insurance covers residential structures and their contents, as well as premise liability. The latter covers injuries sustained by guests or licensees, such as service technicians. 

Keep an inventory.

Create an inventory of all possessions for reference in the event of an accident. Make hard and digital copies, and use categories such as “Antique Furniture,” “Jewelry,” or “Rugs,” for quick reference. By having an inventory list available after a storm or any other incident, you can easily tell the insurance company what’s missing, damaged, or beyond repair. 

Don’t: 

Think the insurance relates to your home’s market value.

Remember that your monthly homeowners insurance rate has nothing to do with the residence’s current market value. Insurance agents base rates on how much it would take to rebuild your home following a major storm or other incident. Factors such as the structure’s location and age also influence rates, as older houses in high-risk areas cost more to insure. 

Skip over floater’s insurance. 

Consider floater’s insurance if you have numerous small, valuable items like gemstone jewelry or stamp collections. While homeowners insurance insures items up to a certain amount, it rarely covers the full value of easily movable belongings.

Floater insurance also covers all types of losses, such as losing a diamond ring down a storm drain. Home insurance covers certain damages only, such as theft or vandalism. 

Discuss your homeowners insurance needs with AiA American Insurance Agency in Birmingham, AL, for the ideal amount of affordable coverage. A carrier of Dairyland®, Progressive®, and GMAC policies, the full-service insurance company has served the region since 1986 and remains dedicated to providing flexible options. Call (205) 940-9977 today to make an appointment or visit the website for policy information. Like the Facebook page for more insurance tips.