The cost of repairing or constructing a house nowadays is so high that a homeowner cannot afford to go without home insurance. But not just any home insurance will do. As much as possible, you want to get a competitive home insurance that covers at least 100% of the replacement cost of your beloved home.
The best way to go about buying home insurance is to do comparison shopping. Even if you are satisfied with your current home insurance provider, it would not hurt to look around and see what other insurance companies are offering for the same coverage and benefits. Who knows, you might find something cheaper for the same coverage and benefits that your current insurer provides.
The first step to shopping for a home insurance is to get quotes. You can ask your insurance broker to send over home insurance quotes from different insurance companies. Another option, the more convenient one, is to simply go online and get free instant quotes from the web site of reputable insurance companies servicing your area. There are also web sites that allow you to get home insurance quotes from many insurance companies at the same time.
Once you have the home insurance quotes in your hand, it is now time to do the hard part: compare the quotes. The following is a simple guide to comparing home insurance quotes.
- Compare by coverage. A comprehensive home insurance should cover the cost of rebuilding or repairing of the house, repairing and replacement of the personal property, and liability protection for injuries caused by you or your family members to other people. It should also provide protection from most disasters, such as fire. Any home insurance quote that does not provide any one of the items mentioned above should be removed form consideration.
Some insurance companies go the extra mile by including dogs in the coverage. If you have dogs, take this coverage under consideration.
- Compare the amount of insurance. Your home should be insured for at least 100 percent of the replacement value of your home-- that is the amount needed to rebuild your home at the same spot, same materials and the same design with quality construction practices. An insurance quote lower in price that insures a house for the amount lower than the replacement value should no be considered.
- Compare the premiums and deductibles. Keep in mind that the higher the deductible--that is the amount you pay out of your own pocket for repairs--the lower the premium. If you are quite confident that your house is in good condition, choose insurance quotes that have high deductibles and lower premiums. Otherwise, stick to insurance quotes that offer high premiums and lower deductibles.
- Compare discounts. Some insurance quotes include discounts that will significantly lower the premium you will be paying. For example, insurance companies give discounts to owners who choose pay premiums every six months. Some offer discounts if you purchase and combine another insurance product with them. Check insurance quotes or such provisions in discounts.