Are you a homeowner in Smyrna, Ga and wondering if you are paying too much for your current homeowner’s insurance policy?  Or are you a new owner, or looking to buy your first home, and you are trying to find some tips on how to buy your first homeowner’s insurance policy?  Below we’ll share 5 tips that should help you in purchasing your next homeowners insurance policy.

#1:  Replacement Cost vs. Market Value

When purchasing your homeowners insurance policy, it’s important for you to know the difference between the replacement cost of your home and the market value of your home.  In most cases, it’s usually cheaper to replace your home in which case the replacement cost would be lower than the market value.  But you have to be aware that the replacement cost could be higher if you purchased your vehicle as a foreclosure or a short sale.  Having a full understanding of both the replacement cost and market value is a key part to purchasing your homeowner’s insurance policy.

#2:  Personal Property Replacement Coverage

In most cases, a homeowners insurance policy will cover 50% – 75% of the cost of the personal property that is inside your home.  However, depending on your personal belongings, this figure could be substantially higher.  If you have expensive items in your home such as jewelry, fine art, collections, electronics, or other expensive items, then it will be important for you to consider increasing the amount of the personal replacement coverage on your policy.  Make sure you discuss this very important element with your insurance agent.

#3:  Exclusions

Knowing the exclusions on your homeowner’s insurance policy is critically important.  Exclusions are basically the items that are not being covered on your homeowner’s insurance policy.  Or they are line items that do not provide enough coverage compared to the risk exposure.  For example, if you live in an area that is prone to flooding, then you’ll need to ensure that you are carrying enough flood protection in the event that your house is completely flooded out.  Ensure that you understand what exclusions are in place on your homeowner’s insurance policy and how you can balance them out to ensure you are properly protected.

These are just a few of the things you need to be looking for when it comes to buy homeowners insurance in Smyrna, Ga.  Whether you are an existing homeowner, or someone who is looking to buy their first home, understanding your homeowner’s insurance policy is critically important to ensure you are properly protected.

What are some other tips you’d recommend when purchasing your next homeowner’s insurance policy.