Checking The Pulse Of The Kansas City Real Estate Market
Getting homeowner’s insurance in place is one of the important aspects of buying a Kansas City home. I always remind my home buyers early on to shop carriers and insurance rates because they can save a lot of money by doing so. But in most cases the response is they’ll just contact their current insurance agent and have them get the info to their lender. At this point I mention that since they’re already going to have to go through the process of setting up a new policy, there’s no time like the present to check out the insurance options available — and with rates fluctuating greatly in recent years, it makes a lot of sense to shop around.
Getting at least 3 quotes is advantageous because all insurance companies handle insurance quotes differently. I’ve been there and at times it can feel like you’re comparing apples and oranges, so asking questions whenever you don’t understand something is also important. At one point I found out that my insurer would no longer cover roofs for wind and hail damage… yes, I switched companies at that point. “Replacement coverage” is very common and is designed to cover the replacement cost if you had to rebuild the home from scratch — including personal property in the home. This may seem like common sense insurance but there are varying degrees of under-insuring and over-insuring, so be sure you understand just exactly what you’re getting.
Other common considerations include making sure you add coverage for outbuildings, detached garages, barns and pools. Also be sure you have coverage for luxury items in your home, like a diamond ring or a fur. If homes in your area are appreciating at a great rate (something they used to do – and will again at some point), you need to make sure you’re amount of coverage is keeping up with the appreciation rate. One item I’m sure many homeowners often overlook is that if you finish your basement, you need to contact your insurance agent to increase your coverage.
I’ve seen quotes that are double from one insurance company to the next and you never know the motivation (or lack thereof) of any particular insurance company. They could be looking to add policy holders or they could be constricting. As with auto insurance, the higher you’re willing to go on your deductible, the lower your annual policy premium will be. So if you want your policy deductible to be low enough to cover a broken window, you shouldn’t expect you’re annual premium to be low as well. You can find reductions in insurance premiums by having your vehicles with the same insurance company and by installing a security system. There are many other ways to get reduced premiums, so be sure to ask what the options are. Oh, and your credit scores is likely to play a role in how much your policy will cost you. Insurance companies have found a link between homeowner’s with high credit scores making fewer claims. So there’s all the more incentive to improve that credit score when buying a home.
If you’re shopping for homeowner’s insurance, here’s a few insurance companies you can check with…
State Farm Insurance All State Insurance Farmer’s Insurance GEICO Insurance Nationwide Insurance American Family InsuranceAnd here’s an interesting site for comparing insurance companies that I’ve seen receive some good online reviews…
Posted by Jason A. Brown
