How to Compare Homeowners Insurance Quotes

Before reviewing homeowners insurance quotes, it is important to learn more about common terminology used for this type of insurance.

Like auto insurance, home insurance is not a “one size fits all” type of coverage. The coverage that you may need will vary based upon several factors, including your own personal preference, where you live and the events that could potentially put your home at risk.

Homeowners insurance can be complex and rates often vary between insurance providers and the area that you live in. In fact, rates for any given area rise or fall based upon several factors, including how many insurance claims have been submitted in an area as well as your own personal claim history. Therefore, it is important to review home insurance quotes carefully before deciding on an insurer and enrolling into a policy.

How to Find Homeowners Insurance Quotes

There are a number of home insurance companies available depending on the area where you live and the type of policy that you wish to obtain. Some of the best home insurance agencies include but are not limited to the following:

  • American International Group (AIG)
  • Allstate
  • Amica
  • Farmers
  • Geico
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • Stillwater
  • Swyfft
  • USAA

You should review homeowners insurance quotes from at least three insurance agencies that offer policies within your area before making a decision. As stated previously, costs and coverage options can vary widely from one company to the next.

When considering property insurance, you may also want to consider services that an insurer offers outside of coverage options. For example, your decision could be affected by factors such as the company’s customer service, financial stability and the way that they handle claims. This can ensure that you will know what to expect should you choose to enroll in a policy with any given company.

Cheap home insurance may not provide you with the coverage that you need to protect your home and property. A home is a large investment, and it may be worth a small increase to your monthly premium to elect for additional coverage options that could further protect you financially in the event of an incident that leaves your home damaged or destroyed.

How to Determine Which Type of Homeowners Insurance Coverage is Right for You

When reviewing homeowners insurance quotes, it is important to review the type of coverage that is offered alongside the price in order to know exactly what a quote is offering you. For instance, very rarely do policies include flood or earthquake perils, as most homeowners will need to purchase additional coverage to include flood or earthquake damage if desired.

To understand home insurance, you must first familiarize yourself with “perils”. A peril is an event that causes a loss or damage to your home. For example, a policy may include coverage for perils such as:

  • Fire.
  • Lightning.
  • Windstorms.
  • Explosions.
  • Smoke damage.
  • Mold.
  • Animals.
  • Falling objects, such as trees or branches.
  • Acts of vandalism.
  • Construction defects.

A homeowners insurance policy will include coverage for various structures, including the primary dwelling, structures located on the property or the items within your home, based upon the coverage that is listed within a policy. Common types of insurance coverage that may be listed within your quote include but are not limited to:

  • Dwelling coverage. Dwelling coverage can help pay to rebuild or repair the physical structure of your home that you reside within, should it be damaged or destroyed by a covered peril.
  • Other structure coverage. Other structure coverage can help pay for damage to structures on your property that are detached from your home, such as a detached garage, shed, guest house or fence.
  • Loss of use coverage. Loss of use coverage helps pay for any additional expenses that you may incur if you must temporarily live outside of your home while it is being restored.
  • Personal property coverage. Personal property coverage helps pay for the cost of personal items that are inside of your home when it is damaged or destroyed. Applicable items include electronics, sporting goods, furniture and clothing as well as many other types of items.
  • Personal liability coverage. Personal liability coverage protects you from financial loss in the event that you or a member of your household is responsible for causing property damage or bodily injury to another person. In some cases, injury or damage made by pets may be included within this policy or included as an additional coverage option.

When reviewing home insurance quotes, it is important to select the type of coverage and peril options that you would like included within your policy and then compare the prices between various insurance agencies. In addition to reviewing coverage and peril options, it is important to take your estimated deductible into consideration. An insurance deductible is an amount of money that you would be required to pay before your insurer would reimburse you for any damages or losses.

Finally, consider the liability limit that an insurer is proposing within your estimate. While $100,000 is a standard amount for this type of insurance, you may benefit more from an amount that is more or less based upon the value of your home and belongings.

A cheap home insurance policy is not necessarily the best policy for you. Therefore, it is important to review the details of a policy carefully before enrolling with an insurer. You may also be able to negotiate a price down from an initially offered price. You may also qualify for personal discounts that could reduce your premium, including discounts such as:

  • Discounts that are applied for bundling home and auto insurance policies.
  • Senior citizen discounts.
  • Military discounts

By reviewing a projected policy carefully, you will be able to determine whether or not a policy is right for you. You should also determine how the cost compares to what other insurance agencies have to offer.