January 18, 2022

Choosing the Best Home Insurance for Your Needs and Budget

Most people just buy the first home insurance they look into and do not think about it until something bad happens to their house or someone gets injured on their property. In case that happens, you’ll be more than happy to have good coverage and good agency on your side. Having good home insurance can make a difference between security and catastrophe for your budget. So how do you choose the best home insurance with the best agency for you and your needs?


Location is the key
Every state, city and even ZIP code in your country can have different insurance rates because rates are created based on the most common threats to security in any given area. For instance, people living in an area with high crime rates will have to pay more for home insurance than those living somewhere safer. If you know the common cause of loss in your neighborhood or area, it might help you settle on the right coverage.

When choosing your coverage, make sure to consider crime rates, because as mentioned above, areas with more theft and burglary will cause your premiums to rise. It’s also smart to consider boosting your coverage against break-ins to ensure extra safety. Also, make sure to count in weather events. People living in extreme weather areas that see a lot of hurricanes, tornadoes, flooding or wildfires might want to work with a company that offers adequate extreme weather coverage. Again, your premiums will be higher if you live in such stormy areas, but investing in insurance is a great idea.


Fun fact: did you know that if you live within one mile of a fire station, you might be eligible for lower home insurance? This way, the fire can do less damage to your house until the firefighters arrive, meaning the insurers need to pay less.

Your home plays a role as well
Every time you move houses, your living circumstances change, so you need to consider a new type of home insurance. Some elements of your home also play an important role in choosing the best insurance for you. For instance, things like square footage, construction time and material, security features, etc. all dictate the price of your insurance. When shopping around for home insurance, look for a company that covers all your home features. It’s natural to ensure your building, but it’s also crucial to ensure its content, so see if there’s a company that combines these two and offers wide coverage for everything that matters to you the most.


If you want to be 100% sure that you will be able to have your home in its original state, consider looking into replacement cost value insurance which helps you repair any damage and replenish losses without depreciation. It’s also smart to look into endorsements for yard, garden, water or sump pump coverage, all based on your property’s features.

Study ratings and reviews
Usually, home insurance companies are provided with their rating by an independent organization to ensure fairness. So when choosing insurance, look into these ratings, paying special attention to J.D. Power rating that ensures customer satisfaction by using real feedback from users, focusing on costs, customer support, agent knowledge and handling of claims. Also, it’s a smart idea to look into your potential provider's records for financial strength, naturally choosing a company with strong financial stability because they probably have enough funds to pay you off in case you file a claim. These companies are also less likely to go bankrupt, so your business will be safe with them.


Consider accessibility
Insurance companies also differ when it comes to customer experience, but this largely depends on how you prefer to do business with your insurer. If you prefer to see your agent in person, look for a local company or a company with offices near your house. If you want to be able to talk to someone from the agency whenever you want, look for a company with 24/7 customer service so you can always report your claim. Other people prefer to do their business online, so a company with an online customer portal, website chatbot or mobile app might be the best choice for them.

Home insurance is 100% necessary, so if you’re already paying for insurance, make sure to give your money to a company that will actually have your back and provide you with security no matter what happens to your property.

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