If you are looking for a first home or thinking of selling your current home and purchasing another, do not leave getting Homeowners Insurance in Commerce, MI to the last second. It is amazing how many people forget this extremely important detail when purchasing a new house. Start shopping for your homeowners insurance as soon as your offer to purchase has been accepted by the current owner of the home. There are a few tips that will save you precious time and money:
Determination of insurability:
An Insurance professional needs a significant amount of detail from you prior to offering a quotation for insurance; the agent will need to know:
* How old is the house?
* Has the plumbing and/or electrical systems been replaced?
* Details of the roof
* Area
* Have there been claims by the current owner in the last five years?
* Location
Deductibles:
The higher the deductable you elect to have, the lower the premium. Most insurance companies will suggest a deductable of $500, over this amount; the company will begin to discount the premium. Although insurance companies may allow you to elect a high deductable, say $10,000, you may find that your mortgage company will not allow it. Check with the company that will carry your mortgage on what they will allow.
How much cover do you need?
Remember, dirt cannot be insured so don’t expect an insurance company to cover the cost that you paid if the purchase includes a large lot. Most insurance professionals have data at their fingertips that help you determine what the house portion is valued at. The coverage should be “replacement cost coverage” which simply means that the policy amount should be for the amount of money that it would take to replace the house, taking into account inflation. Many insurance companies suggest that you insure the home for twice the replacement cost coverage.
Options:
Make sure your policy includes what you need; in many cases liability insurance is overlooked. In the event a person sues for bodily harm or property damage, this insurance will cover the claim. Increasing the face amount of coverage is not expensive and in today’s unknown financial environment it may be a good idea to increase cover from $300 to $500,000 for a small increase in premium.
Homeowners insurance in Commerce, MI will protect what may be the single biggest asset you will ever have. You need to be sure that your coverage is sufficient and the way to do this is to discuss your needs with the professionals at Insurance Advisors, Inc. Visit website for more information.
