Homeowners Insurance

Homeowners insurance is a major necessity for anyone with a home of his or her own. If your home is financed, your lender will require you to carry homeowners insurance coverage.

Even if you own your home outright, very few people can afford to replace it should catastrophe hit.

Homeowners insurance is simply to protect the most important investment that most people will ever make. Before taking advantage of free online tools (like the one above) to get some homeowners insurance quotes, take a moment to understand what you will be getting.

Understanding Homeowners Insurance

Homeowners insurance, like any type of insurance, has its own set of terminology to become familiar with. The more research you do, the better you will understand what you are buying and the better fit your coverage will be for you.

There are several different components of coverage included in a standard homeowners insurance policy: 

Dwelling Coverage: This pays for any damage caused by covered perils to your house, garage or outbuildings like sheds. 

Contents: This covers the cost of replacing your personal belongings.

Liability: This coverage is to protect you from financial loss if you are found liable for damages or injury to another person.

Medical Payments: This pays for medical expenses for anyone who injures himself or herself while on your property.

Loss of Use: This type of coverage will pay for daily living expenses should your home become uninhabitable for a period of time.

Other Coverage: There are a variety of other types of coverage that you can add to your homeowners insurance policy through riders, in order to cover things that are worthwhile. You can often also get extra amounts of liability, medical payments and contents coverage by paying an additional amount. 

Exclusion: There are exclusions on every homeowner’s insurance policy, for things like damage from earthquakes, floods, war, wear and tear and more.

The only way to truly know what you are getting is to look carefully at each policy offering. When you compare various policies, what looks like a great cost savings may actually be the exclusion of a coverage you want.

If it looks too good to be true, it probably is. Huge discrepancies in price between policies should act as a red flag. Take the time to look a little more closely and you will be rewarded with the best home insurance policy for your needs.

Getting The Best Price On Homeowner’s Insurance

The premium you pay for your homeowners insurance coverage is determined by a variety of factors. While you may not have control over these factors right now, you certainly do when making a move and buying a new home. These are factors that can mean a big difference in your yearly insurance costs. They include:

1. Proximity to Protection: If your home is located close to fire hydrants and a fire station, it is better protected than a home that it not, therefore rates are lower.

2. Geography: If you live in an area that is susceptible to floods, hurricanes, earthquakes, forest fires or other natural disasters, your rates will be higher than those in other areas. Coverage may also be limited or excluded for certain perils.

3. Type of Home: Brick and masonry homes are less expensive to insure than homes that have a wooden structure, because they are less susceptible to fire.

4. Age of the Home: If your home is older, chances are it is no longer up to building codes, therefore the cost of your insurance will be higher than someone in a comparable newer home. Recent renovations by a licensed contractor may help your rates also.

5. Credit Rating: In many states, credit scores are taken into consideration for homeowners insurance, as statistics have shown that people with lower credit scores are more likely to make claims on their policy. Therefore if you have poor credit, your rates will likely be higher. Even if you’re not in the best place with your credit right now, improving it will pay off down the road.

Homeowners Insurance Discounts

There are so many different homeowners insurance companies in the marketplace that each tries to distinguish itself by offering discounts and extra coverage. When you are looking for coverage it is important to make sure you have all the discounts that you qualify for. Be sure to ask your agent. These are commonly offered discounts:

1. Age: If all the residents of a home are over a certain age, premiums will be reduced.

2. Deadbolts: The use of deadbolts on all doors and locking mechanisms on all windows will lower the price you pay.

3. Non-Smokers: It will cost less to insure a home with non-smokers only living there.

4. Smoke Detectors: You must have a smoke detector on each floor to be eligible for this discount.

5. Alarm System: If you have a security system, especially one that includes a fire alarm and burglar alarm and is centrally monitored, your premiums will go down.

6. Multi-Line Discounts: If you place your home and car insurance with the same insurer, it will usually cause the premiums of both insurance policies to be reduced.

7. No Claims: If you have no claims on your homeowners insurance for a certain period of time, your rates will be lower.

What To Do When Homeowners Insurance Is Not An Option

Most states offer a high-risk pool for homeowner’s who do not meet the requirements for home insurance on the open market. Rates through this pool are very high and coverage is limited. Therefore, be sure to shop around thoroughly before resorting to this last resort type of coverage.

Homeowners Insurance Companies

There are many homeowners insurance companies, which offer coverage in the United States. It is important to check out any company you are considering, before you buy a new policy. Here are some things to keep in mind.

1. Check with your state’s department of insurance to be sure the company is licensed to do business there.

2. Find out what the company’s rating is with at least one of the independent insurance ratings companies like A.M. Best or Moody’s. They rate each insurer in the nation based on financial stability. You ideally want to choose a company with at least an “A” rating.

3. An online search can give you a lot of information about the quality of customer service a company provides. Complaints about companies are often lodged with each state’s department of insurance. The most important point is claims response time, as it will be what concerns you most should you need to use your homeowner’s insurance.

Top Homeowners Insurance Companies

Insurers offering homeowners insurance coverage throughout the U.S. include:

1. Allstate

2. State Farm

3. Liberty Mutual

4. Nationwide

5. Sentry

6. Farmers

7. MetLife

8. American Family Insurance

Homeowners Insurance Quotes

It is easy and practically effortless to get a homeowners insurance quote using a free online quote tool, like the one at the top of this page. You click on the box, enter your zip code and answer the questions that follow.

In no time, you’ll have a variety of quotes on homeowners insurance from top area insurers to compare and choose from. No more calling around, answering the same set of questions over and over. It’s quick and efficient.