Home Owners Insurance Quotes and Why You should Buy Home Insurance

Homeowners Insurance Quotes
Whether you are buying a condo or a home, there’s a lot to know about Home Owners Insurance when deciding which homeowner’s insurance policy to buy. Every homeowner has a unique situation and should explore the Homeowners Insurance options that are right for them.

Purchasing a home is one of the single largest investments that most people will ever make. Your main line of defense to protect your investment is Homeowners Insurance.

Homeowners Insurance provides financial protection against disasters. A standard homeowners insurance policy insures the home itself, and the belongings you keep inside of it. Homeowner’s Insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you, or members of your family cause to other people. This includes damage caused by household pets. Damage caused by most disasters is covered but there are exceptions. The most significant exceptions are damage caused by floods/earthquakes and poor maintenance. You must buy two separate homeowners insurance policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.

It is your responsibility to protect your home and all the other assets/personal properties inside your home from theft, damage, fire, natural calamities, etc. A home insurance policy does just that, taking care of your financial needs in case of damage to your property.

There are different types of home insurance policies relating to various types of homes such as condos, mobile homes, town houses etc, to suit varying needs and financial requirements of homeowners. There is even home insurance for renters.

If you want to avail of the best and lowest home insurance quotes, log on to the numerous online insurance sites that will offer you quick, free and instant quotes from several different insurance companies simultaneously. This will help you compare different quotes side-by-side so that you can select the best one and save money.

Home Insurance: Most lending institutions or banks will check upon your home insurance status before sanctioning your home loan application. The factors that will determine how much premium you have to pay for your homeowners’ insurance include:

* The age of your home

* Building materials used to construct your home

* Its distance from the nearest fire station and the state/area/locality where it is situated

* The total number of rooms and square footage

* The type of heating system you have installed in your home

* The present condition of your home

* The number of people staying etc.

In addition to standard Homeowner’s Insurance Policies you also have to make arrangements to protect your home from floods and earthquake that are usually not covered by standard home insurance policies. So you can opt for supplemental coverage like flood insurance and earthquake insurance.

Most standard Homeowners Insurance Policies will provide coverage for damage to your home (and many of the items in your home) caused by:

  • Theft
  • Fire and lightning
  • Smoke
  • Frozen pipes
  • Ice and snow

Homeowners Insurance also provides coverage for liability claims, medical payments to third parties, and legal costs if a lawsuit is brought against you. The most common amount of liability coverage included in a homeowner’s policy is $100,000, but you may need much more, depending on your circumstances.

Read the Fine Print.
Read your Homeowners Insurance Policy to find out exactly what is and what is not covered. Do this before you suffer a loss, so there won’t be any surprises. Most insurance companies exclude damages caused by an act of war, nuclear accident, flood, earthquake, and terrorism — although you may be able to purchase special homeowners insurance policies or endorsements that will cover these events.

A Diamond is a Homeowner’s Best Friend.
Most Homeowner’s Insurance Policies limit coverage for certain high-priced or hard-to-replace items. Additional endorsements or floaters will be necessary to protect items like engagement rings, watches, furs, antiques, and other valuables. You’ll need to have each item appraised.

The Magic Number.
Mortgage lenders require that borrowers purchase a minimum amount of Homeowners Insurance (typically equal to the appraised value or the purchase price of the home). But this is often not the amount of homeowner’s insurance coverage you truly need. Instead, find out how much it would cost to rebuild your home and consider insuring it for that amount.

You Get What you Pay For.
Are you willing to pay more to have damaged personal property replaced? If so, consider purchasing replacement cost coverage with your Homeowner’s Insurance Policy. When it comes to valuing property, insurers generally use one of two methods: 1.) The first, actual cash value pays you an amount equal to the replacement value of the property; minus depreciation for the years you owned the item. 2.) The second, replacement cost, is more expensive, but it pays you the full value of the item today, so that you can replace the old item with a new one.

How Deep are your Pockets?
To save money, consider choosing a deductible of $250, $500, or even $1,000. In the event of a loss (e.g., water damage from a leaky roof), you’ll be required to pay this amount out of your own pocket before your Homeowner’s Insurance Policy takes over, but in the meantime, you’ll save on premium charges.

Sound the Alarm.
Don’t forget to tell your insurer if you have a home security system (e.g., fire, burglar, emergency). Most insurers offer discounts for such safety features. You may also qualify for a lower Homeowner’s Insurance Premium if you live near a fire department /fire hydrant, own a newer home, own a home built out of fire-resistant material, or get your auto insurance from the same company.

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