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Oct 17

Get the Right Insurance Protection for your Colorado Home

You are about to buy a new home – now what?

Start by getting a price quote from the company that handles your auto insurance — you generally get a discount on your auto and home insurance if you have both policies with the same company. Look for an independent agent, they can give you price quotes from several insurers. If you have any military connection in your family, it’s worthwhile to contact USAA.

Before you start comparing quotes, you’ll need to decide how much coverage to get. A home’s insurance value is based on the cost to rebuild the house, not the market value. You can work with the agent or the insurer to come up with an estimate.

Homeowners insurance automatically provides coverage for your possessions based on a certain percentage of your home’s insurance value. But homeowners insurance policies usually have lower limits for certain kinds of items — such as jewelry. If you have any particularly valuable possessions, you may want to get extra coverage for those items.

You’ll also need to choose the deductible amount. A $1000 deductible (or higher) will reduce your premium. You will need the amount of the deductible in an emergency fund , in case you need to file a claim.

If you’re concerned about flooding, which isn’t covered by homeowners insurance, you can buy flood insurance through most homeowners insurance agents. Your mortgage company may require flood coverage.

Once you move into your new home, take an inventory, which will help in the claims process if you have to file a claim in the future. Take photos or a video of every room, keep receipts for valuable items, and keep a copy of the file somewhere away from home so it’s easy to access if needed.