What to Expect When Shopping for Home Owners Insurance

If you have a mortgage, homeowners insurance is required by your lender to protect what is generally considered to be your biggest investment; if you don’t have a mortgage - while homeowners insurance is not required - homeowners insurance provides valuable coverage in the event of a disaster and is definitely worth considering. And while homeowners insurance for those who have a mortgage isn’t negotiable, many parts of the policy can be, and those negotiations can affect the price.

Working with an experienced Farmers® Agent will allow you to have a level of confidence in the coverage limits you’re getting, setting the deductibles, and other essential features of the home owner's policy. The Farmers® Smart Home Plan is one of the most advanced and flexible products on the market, allowing you - the customer - to tailor the best policy to fit your budget.

Get the Right Advice.

A major mistake that a lot of people make when shopping for homeowners insurance is going in blind and don’t select an Agent who will take the time to advise them. At Farmers® we will take the time to determine your preferences, and what’s most important to you when it comes to protecting your home and personal property, as well as setting the right liability limits for you.

Your Farmers® Agent will help analyze how much your home would cost to rebuild, and how much your belongings may be worth (though you can know for sure by taking a home inventory with one of these top home inventory apps).

What You Should Know Going into the Process?

• Description of house including Square Footage, number of garages.
• Separate structures such as fences, sheds, gazebos and pools.
• Age, condition and improvements of dwelling's structure, roof, electrical wiring, mechanicals, etc.
• Distance from emergency services such as Fire Department and Hydrant and from recognized Fire-line
• Security devices and safety features
• Types of coverage desired
• How much your personal property is worth and if you have any high-value items to consider on a scheduled insurance floater
• Coverage limits desired

Consider Adjusting your Deductible.

If your premium is higher than you’d like it to be, consider negotiating it down by changing your deductible. Most insurers require a minimum $500 or $1,000 homeowners’ deductible for property damage. If you request to raise the deductible, your monthly costs will likely decrease.

But you don’t want to raise your deductible too high, or you could end up in a financial mess if something were to happen to your home. You want to be aware of this balancing act so you don’t hurt yourself in the short-term or long-term.

Consider a Deductible Savings Account - setting aside a small monthly amount for your home, auto and medical insurance, which accumulates in the event that you need to call upon it in the future.

Be prepared to Discuss all Available Discounts.

While some insurers will offer additional discounts on your homeowners’ policy, like safety or disaster-proof discounts, if you ask, a good Farmers® Agent will generally advise on what discounts are available and proactively seek to apply all available discounts.

Know your Credit Score and History of Claims

Your credit score and previous homeowners insurance history will more than likely influence your quote. For example, frequent claims in the preceding year will result in higher premiums than someone who has never made a claim.

Your Farmers® Agent will help you to understand these variables and offer solutions to help keep your premium as low as possible.

Work out a Bundle Deal.

Farmers® offers more multi-policy discounts than most other insurers; therefore bundling your home, auto, trailer, motorcycle, side-by-side/quad and, if you have one, your business policies. will give you a great discount.

Use a Farmers® agent.

Farmers® has been ranked best in Property and Casualty 17 out of the last 18 years, and we are proud of that reputation. A great claims-experience naturally starts with a great Agent, who will educate, advise and take care of all of our client’s insurance and financial planning needs. Contact me on (480) 561-0333 to get top advice on your Homeowners Policy.