Perhaps the Most Important thing to consider when buying homeowner’s insurance is know what your policy DOES NOT COVER.
For example, Hurricane Insurance won’t cover flooding and Earthquake Insurance won’t cover fires. It is important to read the Fine Print!
Here are some more things to consider:
1. What does it cost to build in your area?
You’ll want to know the per-square-foot average construction cost for your ZIP code. Multiply that by the total area of your home, and you have a replacement cost. Insure for that amount, and then recheck pricing annually
2. What risks does your home face? It’s always good to look into natural disasters for your area. Flooding can be a factor near rivers, streams oceans and bays. Much of the West Coast is prone to wild fires. Volcano eruptions, earthquakes and tornadoes occur in many areas. There are may other things to consider based on the population of your city and it’s infrastructure.
3. What funds do you have? For the sake of living below your means, go for that higher deductible to keep your monthly rate low. Be prepared but don’t pay for more than you have to.