Your home is your most valuable asset. Whether you are buying for the first time or moving to Virginia, you will need homeowners insurance Virginia. Getting the best deal can be challenging, especially in a market which is complex and often bewildering. Insurance is essential, though – people lose their homes every day to hazards which range from fire to falling trees. The best deal is not, of course, always the cheapest price. Here are some things to consider when finding affordable insurance for your most valuable possession.
What about multi-line discounts?
Multi-line discounts are one of the best ways to save money on insurance. Insurance companies don’t like looking for customers – it costs them in time and money. So, they almost always offer a discount to customers willing to get more than one policy from them. For example, it might give you a significant discount to insure both your home and your car through the same company. It’s certainly worth talking to your agent about consolidating. On a similar note, if you are moving to Virginia and your current insurance company will continue to cover you, stay with them —Â many insurance companies offer discounts to long-term customers, especially if you have never made a claim.
Can I reduce my costs by purchasing a different home?
Obviously, the value of your home will affect your premiums. But so will quite a few other things. Look at the CLUE report of the house you’re considering buying, which will give you the claim history for the building (also useful to know what kinds of damage you might have to worry about). Other factors that might affect your premiums are proximity to fire hydrants or the firehouse, whether the community has a volunteer or professional fire department and the age of the home’s electrical, heating and plumbing systems. Consider what the local risks are, too. In Virginia, wind and termites are big worries — both of which are mitigated if you choose a brick house over a wood one. Parts of Virginia are also prone to flooding, so if all else is equal you might want to choose a house on higher ground. Remember that most homeowners insurance does not cover floods, so if you are in a flood prone area you will have to buy a separate flood insurance policy from a government agency.
What can I do to my home to reduce my premiums?
The biggest thing you can do to reduce premiums is put in a good security system. If you are close to the coast and your house does not already have storm shutters, add them — you will lower your premiums and reduce the risk of damage to your possessions. While costly in the short run, if you have elderly wiring or plumbing, consider updating. As a side note, keeping a good credit score also helps. Check your score regularly and get any errors corrected quickly.
Is the cheapest policy the best?
The lowest price is not always the best deal. Shopping around, as with anything else, will help, but resist the temptation to simply choose the cheapest policy. Instead, educate yourself on how homeowners insurance works. A cheaper policy may have a higher deductible — try to choose a policy which has a deductible you can afford, balancing the risk of losing that money with the premium. Make sure the policy you choose covers all of the local hazards. Are you covered if a tree falls on your house during an ice storm, a fairly common hazard in this area? Also, check about coverage on your most valuable possessions. If you have a lot of antiques and other valuables, you might want to pay a little more for a higher maximum on home contents. If you don’t, then you can save money by going with a lower one.
Homeowners insurance also often includes personal liability. Make sure you are comfortable with the amount included. This will cover you if, for example, a tree on your property crashes down on your neighbors’ house, your dog bites somebody, or a neighbor kid falls in your swimming pool.
Read your policy carefully for coverage gaps. Most homeowners insurance does not cover earthquakes. Fortunately, those are seldom (but not never) a problem in Virginia. If you have a sump pump, make sure that you are covered for sump pump failure, which is a very common gap. Another common issue is upgrades forced by law. These are generally not covered.
Also check how much you are actually insured for. Most insurance companies will not pay the full cost to rebuild after a catastrophe such as a fire. Like deductibles, this is another thing you need to think about when balancing cost and risk.
Should I get an agent?
Insurance is a very complicated field. If you are not sure how to navigate it, you should definitely shop for a competent agent. Make sure you hire a good one – all agents are paid the same rate, so check the agent’s reputation or ask your friends for recommendations. An agent will help you find the very best policy for your specific circumstances. The best policy for you might not be the best one for somebody living only a block away.
Overall, remember that the best deal is not always the cheapest price. If you live on the coast, you will need to pay extra for flood insurance, and should take that into account in your insurance budget. Your homeowners insurance needs to be the best balance of cost and risk for you and your family — shop carefully!
2 Point Highlight
“The biggest thing you can do to reduce premiums is put in a good security system.”
“Multi-line discounts are one of the best ways to save money on insurance.”
