Shop Smarter for Your Homeowners Insurance

Your home is a massive investment, and it’s natural to want to protect it. That’s where homeowners insurance comes into play. 

But how do you make sure you're getting the right coverage? Are you paying too much? What’s really included in those policies that seem to be written in their own language?

Below, we'll break down everything you need to know so you can shop smarter for your homeowners insurance and find the right policy for your family’s needs. 

What IS Homeowners Insurance (and Do You Need It)? 

Homeowners insurance protects both your home and personal belongings from unexpected events like fires, theft, or disaster. It covers the costs of repairs, replacements, and can even provide liability protection if someone gets injured on your property. This coverage offers that oh-so-critical peace of mind, ensuring you’re never left footing the bill. 

For more on what homeowners insurance is (and isn’t) and what it covers, click around the Knowledge Center!

Well, in most cases, homeowners insurance isn’t optional—mortgage lenders typically require it to protect their investment, making it a must-have for most homeowners. Plus, it’s not such a bad idea to put a little protection in place for your big purchase.  

Expert Tip

Wondering what other coverages are required (or aren’t required) for homeowners? Start your exploration on this article about home warranties.

Assessing Your Insurance Needs 

The age, location, and type of home can all influence the amount of coverage required, with older homes or those in disaster-prone areas often needing more protection. It also wouldn’t hurt to learn a little more about the difference between your property’s market value and its replacement costThe amount of money needed to repair or replace a home using current building supplies and materials.replacement costThe amount of money needed to repair or replace a home using current building supplies and materials..

Additionally, be sure to review coverage for extra structures like garages, personal belongings, and liability protection, which are all crucial for comprehensive coverage. 

Finally, you’ve probably heard talk of “bundling” your home insurance with your car and other items. Depending on your personal property beyond your home, this could be a great way to save. 

Different Types of Homeowners Insurance Policies 

Different homes and living situations require different types of protection. For example: 

• A single-family homeowner has different needs than a condo owner 

• A renter needs different coverage than someone who owns their residence 

• A mobile home requires specialized coverage due to its unique characteristics 

So, while the specific details of these policies may vary by state and insurance provider, understanding the basic types can help you choose the right coverage for your situation:  

• HO-1 (Basic Form) - Offers limited coverage and is rarely used today.  

• HO-2 (Broad Form) - Provides more protection but still has gaps.  

• HO-3 (Special Form) - The most common policy, which offers broader coverage for most homeowners.  

For those seeking maximum protection, the HO-5, or Comprehensive Form, covers almost everything for high-net properties in high-risk locations. Condo owners typically opt for HO-6, which is tailored for their unique needs, while HO-8 is designed for older homes, focusing on historical value and special considerations. 

Expert Tip

Once you’ve found a home you love, get your homeowners insurance policy ready so your mortgage approval and closing are smoother and faster. Want more tips on how to make the process easier? Check out the Ten Don’ts of Borrowing.

So, Is It Good to Shop Around for Homeowners Insurance? 

In a word? YES! Policies and premiums can vary widely between insurers, so comparing options could save you cash while guaranteeing you get the best coverage for your family’s needs.

Every company assesses risk differently, meaning that one insurer might offer a better rate or more comprehensive protection than another. But by exploring all the options available to you, you’ll no doubt find a policy that balances cost with the coverage that balances financial protection with your monthly budget.

How Many Quotes Should You Seek? 

Cliche alert! Patience is, yes, still a virtue. So, it’s best to gather multiple quotes—don’t settle for the first one you receive. 

Examining different options gives you a clearer view of what's available. And these days, online tools and comparison websites make this process so much simpler by showing you rates from various insurers all in one place.  

Expert Tip

Look beyond the price. A less expensive policy might not offer the level of coverage you need, so be sure to thoroughly review the details to ensure you're getting the right protection for your home. And if you’re not sure what kind of coverage you’ll need, our team can help you with that, too!

AB Insurance 

You work hard for your lifestyle. So now it’s time to protect it. 

AB Insurance, a joint venture between Atlantic Bay and Prosper Insurance, offers a wide range of customized insurance products. With access to more than 20 companies, they provide tailored policies to fit your specific needs, including homeowners, condo, renters, and even flood insurance. Their dedicated claims advocacy team ensures a smooth process during claims, and they also offer risk mitigation solutions for added peace of mind. AB Insurance focuses on protecting what matters most, offering peace of mind to keep your home and lifestyle secure. 

Get your quote today!

Shopping Smart = Lasting Protection 

Alright, that was a lot of information.  

But there’s more to think about than just the basics of your homeowners insurance.  

For example, remember that several factors play a role in calculating your premiumThe amount to be paid for an insurance policy.premiumThe amount to be paid for an insurance policy., from the age and condition of your home to its location and even your credit score, all of which can impact your costs. Balancing deductibles with premiums is another important consideration—choosing a higher deductible can lower your monthly payments, but you’ll be on the hook for more out of pocket if you need to file a claim. On top of that, keep an eye on exclusions in your policy. Some things, like flood or earthquake damage, may not be covered. 

Expert Tip

Don’t forget to revisit your policy regularly. A quick once-over every year can ensure that your coverage evolves with any changes in your home or financial situation.

Protecting your home is an ongoing responsibility, just like your mortgage and home maintenance. And being proactive about your insurance provides both security and peace of mind for new homebuyers and experienced owners alike. So why wait? Start shopping smarter for your homeowners insurance now!