Buying a home is a huge milestone in life for any Michigander. It’s probably your biggest asset. With all the research you put into buying it, shopping for homeowners insurance may have unfortunately come as an afterthought.

However, homeowners insurance requires thought and shopping around. You need to make sure that you have a policy that will protect you in the event of a disaster. Especially in Detroit, Grand Rapids, Warren, Sterling Heights, Ann Arbor, Lansing, Flint, and Dearborn, MI. After taking the time to save and invest in a home, you want to ensure that you are covered for the worst possible outcome and avoid financial ruin.

Are you wondering how to shop for the right homeowner’s insurance for your property? Here are four easy steps to follow in order to get your properly covered at the best rate.

What is Homeowners Insurance?

Homeowners insurance is a policy that gives you coverage for damage caused by things like fire, theft, hurricanes, and more (depending on your policy). The insurance is to repair or replace your home and the contents of the house. In addition, many policies also cover medical expenses should someone be injured on your property which is not a friend or family.

How Michigan Shops for Homeowners Insurance

Whether you are just about to close on your first home or looking around for cheaper rates, it’s important to take your time and shop what you want in a homeowner insurance policy and which providers can give you fair coverage.

You will want to get quotes from several Michigan insurance companies to review what their policies include and how much they cost. It will help ensure you are not overpaying or shorting yourself on coverage.

Step 1: Decide What You Need to Cover

Before you start shopping for homeowners insurance, it’s a good idea to take stock of what you need your policy to cover. There are many things to consider when reviewing a homeowners insurance policy, such as natural disaster coverage and what events are likely to occur where you live. For instance tornados in Kalamazoo, MI or bad storms around Lake Huron.

Read through every policy carefully. You may need to have additional coverage than is offered in an insurers’ plan. For example, if rebuilding your home in the event of it being destroyed costs more in the area you live in than in other parts of the state, consider getting a proper cost appraisal of the replacement of your home that you can present to insurers.

Another aspect to consider is what will be in your home. If you own expensive items such as jewelry or art, or your home’s interior is decorated with more luxurious furnishings, you will want to ensure that these things are also covered. Most insurance companies love to quote only the low-ball minimum to get your business. Make sure you get the right coverage and the right amount of coverage.

Step 2: Collect The Information You Need

When shopping for homeowners insurance in Michigan, to ensure you get an accurate and tailored policy you’ll need to provide certain information to insurers.

This will include things such as:

  • Full address
  • Insurance appraisal
  • Inspection reports
  • Prior insurance details
  • Your mortgage lender requirements

Step 3: Compare Quotes From Various Insurers

Now it’s time to start looking for quotes. You can go through an independent broker or approach individual insurance companies yourself. The benefits of brokers are that they are independent of the insurance company and can provide you with a bunch of quotes from different insurers.

Review not only how much the policies cost but what they include. One insurer may be cheaper than the other, but perhaps they won’t cover flooding, and there is the possibility of flooding in Michigan. Try to compare apples to apples.

Outside of policy, you should also think about an insurer’s reputation. How is customer service, and what are reviews of them online saying? Don’t just look at the bad reviews, read the good reviews also.

Once you’ve found a quote you’re happy with that provides the coverage you need at a fair price, you can select this policy and move forward from a reliable insurer.

Step 4: Finalize Your Home Insurance Policy

There are 3 key aspects to think about when finalizing your policy.

  1. Premiums: When will your premiums need to be paid. If you are buying a new home, it is common for a lender to ask that you pay the insurance premiums for a year upfront or in escrow. Check with your lender and homeowner insurance provider.
  2. Deductibles: How much do you need to pay before your damage claim is covered? Lower deductibles have the clear benefit of not carrying a financial burden should you need to make a claim. However, lower deductibles can often mean a higher annual cost, so if you don’t plan to claim on your insurance, you can take a higher deductible.
  3. Effective date: When will your coverage begin? If you’re purchasing a new property, you’ll want this to start as you close on the property on the same date. If you are getting a new policy, you will want it to start the same day the last one ended, so there are no days your home is uninsured.

Need a hand shopping and navigating the waters of homeowners insurance? Not to worry, we have you covered, get a homeowner insurance quote today! At Compass Insurance Agency we are a broker, so we work for you and not the insurance company. We also simultaneously get you the best coverage and pricing with about 20 insurance carriers. Another benefit to working with Compass is that we speak mortgage lingo 😊.

If you are overwhelmed shopping for insurance, we can work directly with your realtor and mortgage company to make sure you’re completely ready to close on your home on time. Not to mention, we are local. Our agents live in Michigan and help their communities by giving back.


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