Purchasing Homeowners Insurance Wisely
If you are about to buy a new home, whether it is your first or your fifth, securing the right homeowners insurance is a necessary part of the process. Without home insurance, an unforeseen natural disaster or other incident can result in compounded costs that can severely limit your ability to keep pace with monthly mortgage payments.
With that in mind, when choosing a specific insurance plan it is absolutely imperative that you know what your coverage specifically entails, as well as how your home insurance costs are being allocated to ensure the continuance of that quality coverage.
According to HomeInsurance.com, the average annual cost of home insurance nationwide in 2013 has ranged between $850 and $950. For most policies, the cost of home insurance factors in protection against theft, fire, and wind. That being said, home owners insurance costs can vary widely by state, depending on whether the geographical location in which you reside is more susceptible to unforeseen damages.
For example, states like Florida and Louisiana, which are prone to endure hurricanes and flooding, have consistently seen average home insurance costs above $1100 this year. In contrast, the state of New York does not typically deal with such natural disasters, and currently has an average premium cost of less that $800.
All that being said, the importance of examining the details of your policy thoroughly cannot be stressed enough. Your insurance policy may not cover damage sustained by hurricanes, earthquakes, and other natural occurrences if you live in regions commonly affected. In those instances, it may be necessary to purchase additional insurance designated specifically to mitigate that specific risk.
In the end, make certain that you have explored all your options, from differences in price to variances in the extent of the coverage. Being prepared with an optimal protection plan for your home makes all the difference when settling into your new life.
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