Because buying a home can be an overwhelming process at times, it’s easy for first-time buyers to give little or no thought to their need for home insurance in California and what that process entails. But if something were to happen to your new home, it is your choice of homeowners insurance that can make or break you. As you consider this important information, here are a couple of prime tips to help guide you through.
Contact a few companies in order to compare coverage
Your mortgage lender will, in all likelihood, require you to have homeowners insurance. Remember that you aren’t required to buy from a particular insurance company, so compare coverage, price and even scan a few customer reviews to get a feel for how good a fit they might be for you. Be sure to get the right type and amount of coverage for your needs. Shopping for value is fine, but don’t necessarily go fro the cheapest price. Because you’ll generally only deal with your insurance company during times of disaster, make sure the company you choose provides really great customer service.
Consider buying floaters
In addition to your California home insurance policy think about purchasing “floaters”. Oftentimes, homeowners and renters policies limit the amount you can collect on some of the more expensive items you own and claim as a loss, usually things like computer equipment, jewelry, furs and fine collectibles. They may only offer you a fraction of the replacement value. If this is the case, you should do yourself a favor and pick up a special policy known as a floater or “endorsement” for each of those items.
The good thing about having a floater is that it will also reimburse you if you simply lose the article or item. For recent purchases, make sure that you save the receipt (or bill of sale) with your inventory list, and fax a copy to your insurance agent. If the item is an antique, make sure you have an appraisal done, and again, save one copy and send another to your agent. This way, you’ll never have to worry about proving you owned a certain item, and there can never be a dispute over what it’s actually worth.