Buying a home is one of the most important investments most people will ever make.It is important to protect yourself financially in the event there is damage or a total loss of your home. Homeowners insurance is a financial tool that exists to protect people in the event that their home is damaged or destroyed. A good homeowners insurance policy should be one of the cornerstones of creating your financial safety net.

According to recent research, studies showed that about 34 percent of New Jersey homes are consider to be on or close to the coast and are therefore prone to damage from Hurricanes or Tropical Storms. The total value of these homes is $719 billion. There are many companies in the NJ Homeowner's insurance market so it is important to know what variables to consider when shopping for a policy:

Attributes of Homeowner’s insurance policy:

• The primary benefit of a homeowner’s insurance policy is that it will insure the full value of the home and it’s belongings. Selecting an insurance broker that will properly evaluate the value of your home and it’s belongings is crucial to obtaining a policy with adequate financial protection. 
• When shopping for a policy it is important to consider the reputation and customer service of the company you are purchasing the policy from.
• After you know the amount of coverage you need, finding a policy at the best price is another variable that should be considered. There is no need to pay more than you should.  That’s where Eastern Insurors can help.
• Pay attention to different terms in the policy like actual cash value, replacement cost, wind deductibles that are used by the insurers. These are some of the primary elements of the policy.

Know these things before buying Homeowners Insurance:

1.  The amount of Homeowners insurance is evaluated differently than renter’s insurance:  Homeowners insurance coverage is evaluated based on the belongings inside the home as well as the value of the structure but there are other factors too. Some homes are prone to the natural disaster or other natural disasters based on their geographic location all these things can affect the premium. Renter’s policies typically only cost about ten to twenty percent of what a homeowner’s policy will cost.
2. Home reconstruction costs might be more than you think:  The coverage amount should be  based on what it would cost to repair or replace the home in the event of damage or even total loss.  
3. Replacement values are not created equally: When it comes to replacing the belonging of your home there are typically two kinds of coverage options: the more expensive option replaces your possessions completely, the less expensive option replaces the estimated value of your possessions but factors in deprecation. It is important to consider all of the factors and consequences before deciding whether or not to choose a homeowner’s insurance policy that replaces your home’s items completely or only replaces the value of the items with deprecation.

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