If you have a mortgage on a home, the lender will require you to carry a home insurance policy to protect against damage to the home resulting from natural disasters like flooding, thunderstorm, hailstorm, or from theft and fire. As a buyer, you select the home insurance company you want to go with during the escrow process (before the closing).

Easily available in the market, home insurance should be treated not as an expense but rather as an investment in your a very important asset, similar to how we approach a health insurance policy.

Choose a policy that provides best coverage to your home

Different insurance companies have different home insurance products to cater to the needs of homeowners. There is no single policy that can be deemed as best for all homes. You need a home insurance policy that provides best coverage to you depending upon the location and size of your home. You should consider removing coverage that you do not need or that does not apply to your case; this will most likely bring down the premium cost of the policy.

Inquire about a customized insurance policy

For example, if the policy provides coverage against flooding but you believe your structure is relatively safe against the danger of flooding, you can get this coverage removed from the policy to pay lesser premium. You can also ask about coverage for a threat that is not included in the standard policy.

Remember that your claim history is important for insurance companies. It can play an important role in deciding the premium you end up paying. Opting for high deductibles is one way you can make home insurance more affordable.

When I work with buyers, I assist in the home insurance selection decision, and many other important decisions. You can count on me for quality referrals. Think of me if you are looking for smart, attentive real estate advice and guidance.