• Before purchasing home insurance, ask your realtor, neighbors, or family members for their preferred insurer.
• Request multiple quotes from at least three providers to ensure you have the best rate and coverage for your needs.
• Consider the challenges of your geographic location and review your policy to confirm you have the right coverage for situations such as fallen trees, earthquakes, and floods. You may need to elect additional coverage for such situations

Mistakes to Avoid When Buying Homeowners Insurance

Although it might be tempting to get a bare-bones policy to save money on premiums, this could come back to haunt you later. “Probably the biggest mistake that people make when buying homeowners insurance is to focus on price rather than coverage or quality,” says Professor Jay Feinman, an insurance expert with Rutgers University Law School. “You need to understand the type of insurance you’re buying, what is covered, and what is not.”

Other common mistakes homeowners make when buying coverage can include:

• Insufficient coverage. Be sure to purchase a policy sufficient to replace or rebuild your home and any outbuildings, such as a garage, pool, or fence, as well as your home’s contents, including heating and cooling systems, furniture, clothing, and other possessions.
• Neglecting rebuilding costs. “Two-thirds of American homes are significantly underinsured,” Feinman says. “Try to get an accurate idea of what the actual costs would be to rebuild.” He noted that those costs can be higher after a major event. “When many people need to rebuild at once, costs go up dramatically,” he says.
• Assuming all perils are covered. Homeowners insurance covers named perils outlined in the policy, so it’s essential to read your policy carefully and understand exactly what is and is not covered. If there is specific coverage you’re looking for that isn’t explicitly mentioned in your policy, such as damage from a falling tree, ask for a written statement clarifying the issue.
• Jumping at the first quote. Periodically review your policy to continue to get the best rates. Home insurance companies tend to tack on rate increases each year for various reasons, such as inflation, increases in the value of your home, and other factors. Regularly shop around to confirm you’re still getting the best value for your needs.

Not taking advantage of discounts. Many insurers offer a multitude of discounts you could qualify for. For example, ask the company you’re currently with if they have a loyalty discount. Some companies will lower your premiums by a certain percentage depending on how long you stay with them.