One of the most exciting purchases that a person can make is that of a new home. And after picking the perfect location and arranging for the payment, perhaps the most important decision is how to protect your investment in the event of catastrophe. This can be done by through the purchase of homeowners insurance. While your first thought may be to purchase the cheapest option available, there when it comes to cheap homeowners insurance there are pros and cons.

The biggest advantage of cheap homeowners insurance is the most obvious, the affordability. Typically, home insurance premiums are rolled into a home mortgage payment and the cheaper the insurance, the cheaper these payments will be. Cheaper homeowners insurance options can also be beneficial in that they often can cover only the basics such as liability coverage and do not contain options that may not actually benefit the homeowner. For example, flood or hurricane insurance options would not be necessary for certain areas of the country. Another pro for opting for a cheaper home insurance policy would be that someone who may have a high credit score or an excessive amount of past homeowners insurance claims may not qualify for premium coverage. In these instances, it would be best to look into cheaper options.

But just like with most things, the cheapest option may not always be the best. Perhaps the biggest con to choosing cheap homeowners insurance would be in getting a policy that does not protect your home fully. This would leave you, in the event of catastrophe footing the bill almost entirely on your own. Cheaper policies often will only cover a very minimum amount of claim and do not typically cover items inside the home that may be damaged. If the policy does not properly protect your property, then in the long run, you may end up paying more or even losing your home altogether. In order to find the best possible coverage for your home, be sure to shop around and compare all your options. The cheapest coverage may not be the best for you, but you will be sure to find the perfect balance of cost and coverage if you shop around.