When approaching the purchase of a new home one has many expenses to consider. The whole process can feel overwhelming to beginners and still daunting to the experienced buyer. There are just so many things to consider, and each one will affect the final payment you are faced with every month. One of these obstacles is acquiring homeowners insurance. Settling on a provider is not just as simple as making a choice and going with it. There are many elements to consider and you have to ensure you are not only getting the best deal but also that you are picking the best matched policy for you.
Those purchasing a home in Missouri have the benefit of living in a state with a lower than average cost of living that will reduce costs all around. The purchase price will typically fall below what they would pay for the same home in other locations and homeowners insurance will feel like less of a burden as a result. With that being said, Missouri buyers must still work hard to choose their best policy taking coverage and price into consideration. The decision can be made easier when taking the steps to prepare yourself for the process and knowing what to expect in advance. Following the tips outlined here can help make the whole process of purchasing Missouri homeowners insurance much easier and seamless as you approach the final purchase of your new home.
What is Homeowners Insurance and Do I Have to Have It?
Homeowners insurance is coverage on you home residence that protects your assets as well as your liability. If something were to happen to your home such as a fire or storm damage, your homeowners policy should help to reduce your own personal cost out of pocket at this time. Additional coverage can be purchased for events like floods, earthquakes, and other disasters. It basically just ensures that you will not be left with home repairs and costs that are beyond your control. It protects you in other ways as well. If someone was injured on your property, your homeowners insurance would help to protect your liability in the incident. This can prevent you from being sued for damages to be paid directly out of pocket. This coverage can make a huge difference in your life if you are presented with unexpected circumstances.
You must have homeowners coverage if you have a mortgage. It is vitally important not only for your own protection, but for the protection of your lender as well. Without it, you could be put in a situation that prevents you from paying your mortgage or causes you to entirely lose the home. This greatly effects the lender as well. Your home is basically collateral to receive a home loan in the first place and lenders must be sure that their investment protected. You will not be able to close your home loan until you have secured a homeowners policy. It can then be divided into monthly payments attached to your mortgage payment. Most buyers choose this escrow option because it ensure that their coverage never lapses thanks to a never missed payment. Lenders prefer this as well as it guarantees that their investment is always protected.
How Do I Find the Best Coverage for Me?
Not every policy is as effective as others. Some may sound better than they actually are. That’s why it is so incredibly important to do your research before making a decision.
Shop Around
Don’t just take the first policy you come across. There are so many options through nearly every insurance provider out there. They all offer different rates and different coverage. Make sure you are looking for all the options out there and inquire with at least three to four providers. The more options you have, the better your chances are for finding the absolute best. You can’t know if you are getting what you deserve and what is best for you if you only look at one option.
Make sure you are getting the coverage you need
Not all policies cover the same types of incidents. Typically, all policies cover damages from fire, storms, theft, and vandalism but not extras that may be necessary for you. Flood insurance, for example, is often an extra add on. Much of Missouri is a flood-risk zone. If you live somewhere in the state that has the possibility of flooding then you will be left uninsured in the event that your home is decimated by the rising waters. Earthquake insurance is also usually just an extra option. While Missouri doesn’t suffer from chronic and severe earthquakes, small quakes do happen as the state rides along the edge of the biggest fault line in nation. Whether you want this kind of coverage will be up to you, but you should know it is extra coverage you would have to ask for. Being aware of what your new policy will and won’t offer are crucial bits of information for you to have.
Leverage any discounts given by insurers
Once you have narrowed down your search, look for discounts offered by each insurer. Sometimes this can be as simple as a multiline discount. Having more than one insurance policy per insurer can lower your rates all around and save you tremendously in the long run. Other discounts can save you from some disasters before they even occur. Many insurers will give you discounts for taking safety measure in your home. You can receive breaks for doing things like installing and maintaining fire or security alarms as well as deadbolts. For an even larger discount, you can install high tech sprinkler systems. Things like this can be a one-time investment that save you tremendously over time and prevent you from having to use your homeowners policy in the first place. It’s really a win-win.
In the end, the decision is yours alone. You have to find what works for you and what you are most comfortable with for coverage. Following these tips and following your gut will lead you where you need to be. You will find your perfect coverage and take one stressor off the table when buying your home.
2 Point Highlight
With that being said, Missouri buyers must still work hard to choose their best policy taking coverage and price into consideration.
Following the tips outlined here can help make the whole process of purchasing Missouri homeowners insurance much easier and seamless as you approach the final purchase of your new home.
