If you recently purchased a property, home insurance provides peace of mind for you and your lender. As a frugal homeowner, you will shop around for the most cost-effective policy. But that’s where home insurance can get a little murky. How can one insurance company offer rates at a fraction of another’s? The answer may reside in the small print. If you are considering purchasing home insurance, consider these factors and evaluate your house with the Douglas Residential Cost Guide.
Factors That Determine Home Insurance Premiums
Selecting home insurance to feel secure sometimes feels like choosing a meal from a buffet. Insurance carriers generally offer basic coverage and a wide range of add-ons. These may include items such as natural disasters or long-term stays during repairs. Although these extra coverages may seem to drive up monthly payments, replacement cost has a significant impact on insurance premiums. Ask yourself the following questions about the residence.
- Where is the home located?
- What year was your home built?
- Does the structure have construction elements considered high-end?
- What is the estimated replacement cost based on square footage?
- Would that estimate include any upgrades you made?
- Would that estimate cover any specialty or unique aspects?
- Does that estimate reflect the home’s design?
These rank among the pertinent questions that too many homeowners do not have enough information to answer adequately. The truth is that many home insurance policies consider replacement cost based on square footage and prevailing rates. That approach may not account for architectural design, upgrades, specialty work, historic elements, or the cost of labour and materials in your area. That’s why homeowners would be well served to utilize the Douglas system to gain insight and a proper replacement cost estimate.
Use the Douglas Residential Cost Guide When Purchasing Home Insurance
The Douglas system is based on more than 30 years of precision estimate experience. The online and hard copy resource allows everyday people to select the unique elements of your home. Rather than get coverage for general square footage, you can determine the replacement cost you require should a total loss occur. The Douglas Residential Cost Guide offers homeowners inexpensive one-time or multiple uses to identify the amount of full coverage they need.