You take the time to get the best deal on your home, you should also take the time to get the best deal on your Maryland homeowners insurance. You don’t have to be a home insurance expert. Anyone can look like a smart shopper simply by taking the time to evaluate your options and to understand the type of homeowner insurance that you need.
Get Only the Insurance That You Need
Some homeowners insurance companies may scare you into getting a little more homeowners insurance than you really need. They may say you should insure your home for the amount that you paid. This you shouldn’t do. You don’t need to insure the dirt and the grass. They were including in the price of the property, but they should not be included in the price of the Maryland homeowners insurance policy.
Also, don’t automatically purchase flood insurance policies. If you do not live in a flood prone area, then you don’t need to pay the significant amount that it costs to have a flood policy. A good rule of thumb is that if your lender does not require you to get a flood insurance policy, then you probably shouldn’t pay for one.
Replacement Cost is the Best Deal
When shopping for an insurance policy, you will have a choice between replacement cost coverage and actual cash value coverage. Actual cash value will save you some money on premiums, but if something happens to your belongings, then you will be wishing you had purchased replacement cost coverage.
Replacement cost coverage pays you for how much it will cost to replace a specific item, where as actual cost coverage only pays for how much the item is valued at the time it was destroyed. The depreciation can kill you. It doesn’t add that much to your premiums in most cases to go with replacement cost coverage and it is generally the better deal.
Check Your Credit Rating Before Purchasing Coverage
You may not realize that your credit rating will affect how much you pay for Maryland homeowners insurance—better credit means better rates. Your credit rating will also be checked by lenders if you are in the process of purchasing a new home. It is probably a better idea to check your credit scores before this, so as to give you some time to fix any errors if they exist.
If you have a checkered credit history and know that you cannot get it in good shape in time to get homeowners insurance, then see if you can find a Maryland homeowners insurance company that does not do a credit check. Most do, but there are some companies that do not and you may get a better rate from them.
Don’t Accept the First Quote
It is easy to just go with the first insurance company that you contact, but that could cost you a fortune over the long haul. There are many differences from one company to the next. There are differences in how much a company will charge in general, how they weigh risk factors as well as how they view your home.
Not all insurance companies view your home the same. For example, if you are purchasing a modular home, some homeowners insurance companies still consider them to be mobile homes and will charge you accordingly, while most insurance companies quote you a rate based upon it being a stick built home (which it actually is). You can pay nearly double per year in premiums for a mobile home.
Rate Quotes Make You Look Smart
If you want the best deal, you have to look for the best deal. This takes a little time and effort, but not so much that you should procrastinate and let it slide. All that is required of you is to get online, fill out a form that gives some information about yourself and the home you are buying and you can get multiple Maryland homeowners insurance quotes in only a few minutes.
These quotes will let you compare the prices of the policies you are looking for to make a better decision on the amount of coverage you are looking for and which Maryland homeowners insurance company you should go with.