by HRRC Financial Counselor Keesha Allen.  Every other commercial these days seems to be about insurance companies and the perks they offer. It’s tempting to make a decision based on the fact that your favorite actor is the spokesperson, or that a cute animal is trying to convince you that their coverage is best. Despite this clever advertising, it’s important to do your homework and make your choice based on the product and protections you are looking for in your homeowner’s insurance. Here are some tips that can help you identify the policy that will be most beneficial in case you actually have to use it.

The first step is to determine how much insurance coverage is necessary. It’s important that you discuss in depth with the agent the types of insurances that you need and don’t need. Your lender will require that you purchase “hazard” insurance, which protects you and the lender from loss in the event the house is damaged or destroyed by fire or storm. This usually covers personal liability, if you are sued due to injury on your property, and medical costs if a member of your family is injured. It also protects against losses due to fire, theft and weather-related hazards. Be sure to talk to your agent about the replacement value of your home and the value of its contents, to make sure you have adequate coverage. Additional coverage may be required if you live in an area prone to floods, earthquakes, hurricanes or mudslides; your agent will know if these riders are needed for your area. Make sure you’ll have adequate coverage to replace personal possessions in case of loss, but don’t buy insurance to protect yourself against unlikely risks (for example, a policy to cover expensive jewelry if you don’t own any). The best way to ensure that you recoup the full value of your personal possessions is to store receipts and an itemized inventory of your possessions (along with pictures or video, if possible) in a remote or secure location.

While you are doing your research about which insurance provider best fits you and your family, make sure you are receiving as many discounts as you can. Installing fire extinguishers, smoke detectors, deadbolt locks, and security or fire alarm systems in the home may lower the cost of your policy. Senior citizens may qualify for discounts, as well. Identify ways you could make your home less expensive to insure; for example, by updating old wiring or an outdated heating system, you can reduce your risk of fire and therefore lower your premium. Combining homeowner’s, auto and other insurance coverages into a blanket policy will often save you money. Establishing a long-term relationship with an insurer can sometimes earn you a discount (often 5% – 10%, depending on the company). On the other hand, risk factors such as owning certain types of dogs, adding a swimming pool, or having a trampoline can limit the amount of coverage you can get – or even void your policy altogether. Read all of the fine print in your policy under the “Conditions and Coverages” sections, so you know what things are excluded from coverage. You may decide you need to purchase additional insurance to protect yourself from certain types of exposure.

Insurance policies, like home mortgages, can be difficult to decipher and evaluate, but getting several quotes from an agent you trust will allow you to compare prices and determine the policies that will work best for your circumstances. If you have done adequate research and compared several quotes for their costs and coverages, you’ll be prepared when or if an emergency happens. Call HRRC Financial Counselor Keesha Allen at (216) 381-6100, ext. 13, if you have questions about getting insurance coverage for your home.