Every time you shop for a great deal on your homeowners insurance in Utah, you must strike the right balance. You need adequate coverage for your new home, but you do not want to spend a great deal for it. By understanding what coverage you need and how to find the best discounts, you can obtain good insurance that will protect you when you need it most.
What does my Utah homeowners insurance cover?
Although the idea of homeowners insurance seems quite straightforward, the actual specifications of any individual policy can be unpredictable. The fundamental coverage provided by your standard policy covers the structure itself and the items that you have in it, according to the Rocky Mountain Insurance Information Association (RMIIA). Most policies offer some degree of liability coverage, in the event that someone visiting your home sustains an injury. There may be exceptions to coverage for the structure itself in situations where you only own a portion of the property, such as a condominium or twin home. Before you can shop for policies, you must determine what kind of coverage is necessary for the type of home you have.
Do I need to pay for additional disaster coverage?
The most common types of natural disasters in Utah that could cause damage to your home include fires, earthquakes and floods. Your regular homeowners insurance policy covers damage by fires, including wildfires. However, it does not automatically cover you in the event of earthquakes or natural flooding. Flood insurance is especially important if you live near a major river, site of frequent snow runoff or a floodplain. The Insurance Information Institute notes that you can get flood insurance through your insurance provider, as part of the National Flood Insurance Program (NFIP).
Earthquake insurance is offered by most insurance companies, but you may have to request it specifically. Utah has not sustained a significant seismic event in over 50 years. However, that does not mean that your home is safe from the damage that earthquakes can cause. Utahns see small earthquakes on a weekly basis across the state. Over time, even minor earthquakes can cause cracking and damage to your home’s foundation and walls. Once you discover the damage, you rely on your homeowners insurance to help you pay to fix it. Without earthquake insurance on your policy, however, you may receive no coverage at all. Fortunately, you may receive a discount on this insurance by adding it to your conventional policy.
Which of my possessions are covered by my homeowners insurance?
Your homeowners insurance policy is designed to cover the possessions in your home, but there are a few exceptions. As a general rule, your insurance covers items that remain in your home. Specifically, the policy protects you from damage to items that depreciate in value. You may have a few possessions that will appreciate over time, such as jewelry or works of art, or things that are particularly expensive like technological equipment. At the least, you should document your ownership of these items. Get an appraisal for anything that may appreciate in value. You should also consider adding a rider for equipment, jewelry or other possessions that you routinely take out of the home, so you have extra protection in those instances.
How much insurance coverage do I need?
All this insurance for your home and belongings costs money, and it is tempting to try to trim your expenses by skimping on your coverage. Experts suggest that this is a bad idea. For example, many people estimate the cost to replace the structure of their homes based on market value. The RMIIA argues that, instead, you should get an estimate of the cost to replace certain portions of the structure, and purchase insurance based on that value. Do not forget living expenses you may need if you have to live somewhere else while your home is repaired. Making realistic estimates of these costs, and revisiting your total coverage each year, helps you to obtain the right amount of coverage and avoid an expensive shortfall.
How do I shop around for the best homeowners insurance deals?
There are many ways to cut insurance costs without having inadequate coverage. There is not a law for what any insurance company or agent must charge you to insure your home. While this complicates your search for the best deals, it also gives you a lot of flexibility to shop around. Before you move, take a moment to scope out the common providers in the area. They often offer online calculators that will give you a rough estimate of what your expenses might be for coverage. Do not underestimate the deals that local agents can provide, if you contact them directly. They may be able to offer you discounts that you would not receive from an online calculator.
What other insurance discounts should I consider?
The discounts that you get from your agent can add up to hundreds of dollars in savings each year. For example, planning a significant move usually requires you to change your auto insurance policy. Consider getting all your insurance from one agent for a bulk discount. If you are already intending to make some improvements to the home before you move in, ask your agent about incentives. For example, you might get a break in your insurance if you install a security system, or replace your roof with material that resists damage from heavy winds or fire. If all else fails, the Utah Insurance Department suggests that you increase the deductible on your policy and put a few hundred dollars in savings to cover the shortfall. This will lower your premiums and discourage you from filing a claim over a minor problem.
When you buy a home, getting good homeowners insurance in Utah should be a priority. With this advice, you will get insurance that is right for you and your home, and find some good discounts for it.
2 Point Highlight
Before you can shop for policies, you must determine what kind of coverage is necessary for the type of home you have.
The discounts that you get from your agent can add up to hundreds of dollars in savings each year.
