You may have recently spent many weeks- or even months- putting a lot of thought into building or purchasing the right home for you and your family. The important decisions that you must make do not stop after you have found your new home. Buying home insurance for your new dwelling is a significant choice in protecting the investment you have just made.
When you are evaluating your options for a homeowners’ insurance policy, there are a number of things that you may want to take into consideration.
Policy Discounts
It is often possible to obtain one or more types of discounts on your homeowners’ insurance policy. While the availability, types, and amounts of discounts often vary from company-to-company and from time-to-time, the following is a non-exhaustive list of some of the common discount programs that may be available. Please note that the following is for general information purposes only, and your eligibility for specific discounts will depend on a variety of factors (such as your personal circumstances and the particular homeowners’ insurance policy you select).
Home and Auto Insurance combo
Bundling your auto and home insurance can sometimes save you as much as 20-25%. Bundling basically means you hold your auto and home insurance policies from the same provider.
New Homes
You may be eligible for a discount if your home is new. It’s possible to save up to 15%-20% on policies for new homes. Your home may not necessarily need to be brand new to qualify, but typically it must be within five years old.
Security Alarm
Installing a home security system can save you as much as 10%-15%. Security systems help reduce the risk of theft and burglary and oftentimes come with a smoke alarm, which can provide even more of a discount.
Impact-resistant Roof
Depending on the type of impact-resistant roof you have, you may be eligible to save up to 35% with some carriers.
Types of Policies
When obtaining quotes and selecting between different types of homeowners’ insurance policies, it is important to know about the different types of policies that are typically available.
HO-2
This is among the most basic of policies. This usually has reduced coverage levels for your home.
HO-3
This is the most common type of coverage and will typically help protect your home against most types of perils, with exclusions for certain types of perils such as (and without limitation) earthquake and flood damage. If you are interested in flood and/or earthquake damage, typically those must be purchased through separate policies.
HO-5
This type of policy is usually more comprehensive than the HO-3, typically with better coverages but also with a higher price. This option is often geared toward high-value and luxury homes, although you may not necessarily need to have a luxury home to be eligible for this coverage. Having an HO-5 insurance policy offers additional coverage and increased protection.
All in all, the best thing you can do when finding a New Canaan home insurance policy is to know your home. Please do not hesitate to reach out to our experienced agents with any questions or to discuss your options for homeowners’ insurance.
