If you are a new home buyer, then you are also probably new to Idaho homeowners insurance. Insurance for your home is one of your major financial commitments, so before making that new home purchase, you should get to know the basics of Idaho homeowners insurance. Also, the home you purchase can have a huge impact on the how much you end up paying for your Idaho homeowners insurance.
To get yourself started on this topic, take a few minutes to learn some of the basic information concerning Idaho homeowners insurance that follows.
Your Lender Will Require Homeowners Coverage
If you still are paying on a mortgage for your home, then whoever is the lender is going to make sure you have a minimum amount of homeowners insurance coverage. This is because they have an investment in your home and they want to protect this investment.
When you are purchasing your first home, your lender will tell you how much insurance they require you to have. The minimum amount will usually be how much it costs to rebuild the home. You will probably want to add some additional coverage for personal property and for any other structures that you have on the property or intend to add to the property.
Your Location Affects the Extent of Your Coverage
If you live in an area that is particularly susceptible to tornadoes or flooding, you will need to purchase additional coverage. Generally, this will require separate policies distinguishable from your standard policy.
A wind and hail policy or a flood protection policy will have their own deductibles and limits and a separate premium to be paid.
Your lender will likely require you to purchase one or both of these policies if you live in a high risk area. If they do not, it still may be a good idea to consider these policies, as the damage caused by a flood or a tornado may completely destroy your home and all of your belongings.
Factors Affecting Your Premiums
The extent of your coverage will in large part determine how much you will pay for your insurance. Here are some of the major factors that make up your coverage.
- Flood protection
- Personal belongings coverage
- Replacement cost of home
- Wind and protection
There are also certain risk factors that can add to the cost of your home. Here are few things that will increase the amount of your Idaho homeowners insurance premiums.
- High cost of living in neighborhood
- High crime rate in neighborhood
- If you own certain types of dogs
- Swimming pool on the property
These are only a few of the most notable risk factors. Your specific situation and location may present additional factors that may adversely affect your premiums. Not all Idaho homeowners insurance companies rate the importance of risk factors the same. This is a good reason to shop around for Idaho homeowners insurance.
Take Advantage of Homeowners Insurance Quotes
With the internet becoming more and more important as a shopping tool for consumers, it is now easier than ever before to get homeowners insurance quotes. By getting online rate quotes, you can compare the rates of different policies. In addition, you can also play with the numbers and put in different deductibles, policy limits or any other variable you want to manipulate to see just how much they affect your rates.
It takes only a few minutes to get multiple quotes and the money you save could be in the hundreds of dollars per year. Also, by playing with the numbers and getting an idea of the coverage you can afford, you will be getting the best Idaho homeowners insurance policy for you.