There are a number of factors you should consider when purchasing any product or service, and insurance is no different.

  • Here is a checklist of things you should consider when you purchase homeowners insurance.
  • First and foremost, purchase the amount and type of insurance that you need. Remember that if your policy limit is less than 80% of the replacement cost of your home, any loss payment from your insurance company will be subject to a coinsurance penalty. Also, determine the amount of personal property insurance and personal liability insurance coverage that you need.
  • Second, determine which, if any, additional endorsements you want to add to your insurance policy. For example, do you want the personal property replacement cost endorsement or the earthquake endorsement?
  • Finally, once you have decided on the coverage you want in your homeowners insurance policy, you can now decide which insurer you would like to purchase the insurance from.