I came across this great article over at TheStreet.com about 8 steps to take before purchasing a homeowner’s insurance policy. Take a look, and keep these things in mind when purchasing your first homeowner’s insurance policy.

1. Collect all personal information needed to get a quote.
This includes your address and social security number. It also includes safety specifics, such as the nearest hydrant, fire station, central alarm information, etc.

2. Consult with friends, neighbors and family members.
Find out who they use for their homeowners insurance and if they are satisfied with their coverage. People are very quick to share horror stories and/or successes regarding their insurance company. This can save you valuable time in your search.

3. Decide if you want to use an agent, direct writer or the Internet.
This is an important determinant in the amount of time you will spend shopping for your policy. Many people already have an excellent relationship with an agent and may decide to go that route. Keep in mind that the extra work done by an agent may come with a somewhat higher price.

4. Know the limits of coverage, and deductibles.
You can always request quotes for multiple options. But it’s good to have an idea of what you want beforehand.

5. Set aside time to contact agents, companies or web sites.
A good plan of action will help cut down on the amount of time involved.

6. Take good notes.
You will need to know who to contact in order to select a particular policy. You may want to create a small worksheet to track your different quotes and coverage. This can help you ensure you are making “apples-to-apples” comparisons among your choices of policy.

7. Narrow your list down. Delve deeper into the remaining choices.
Each company’s financial strength rating as assigned by the major credit rating agencies, Standard & Poor’s, Moody’s, A.M. Best and TheStreet.com Ratings.

Contact your state’s department of insurance to see if they can provide you with any information on the companies’ history of consumer complaints or anything else that may help you in your decision-making process. For help in contacting your state insurance department, try this link.

Conduct a quick search on the Internet to glean any other valuable information pertaining to the companies in question.

Ask each company on your list if they offer “package” or discounted rate if you also insure your automobiles with the same company.

8. Select a company. Submit a purchase application.
If the paperwork comes back with a premium quote that differs significantly from what you were initially quoted, don’t hesitate to move on to your second choice of company.

Source: (TheStreet.com)