Compare Home Insurance Companies

Even after years of home ownership, do you feel uncertain when you buy insurance? It is perhaps your biggest asset, but you may feel unsure about whether you are truly covered or not.

Add to this that life changes, and maybe what was perfect for your situation 10 years ago might now be inadequate.

The first area of concern is a reasonable one. Homeowners insurance policies cover four basic areas. The first is the most important, and is your dwelling, or house.

The main structure tops the list as the most expensive aspect of your policy.

Many homeowners mistakenly panic and buy coverage for the actual value on the real estate market.

If the market is inflated, then you are likely to have too much coverage. If the market is in a slump then you may be inadequately covered.

Instead, figure out how much your house costs to actually rebuild it.

Be sure to always compare rates using our FREE search tool above!

Buying Useful Product Additions

How do you do that, you may wonder. Hire a building contractor and a home appraiser. Both will be money well spent, because together they will determine how much your house costs to rebuild.

compare home insurance companiesIf you are additionally concerned about the reality of a disaster hitting your home, consider some smart product additions.

  1. Flood Insurance
  2. Extended Replacement Cost
  3. Inflation Guard
  4. Law or Ordinance Coverage
  5. Replacement Cost
  6. Water Back-Up

The first is flood insurance, and you are restricted to buying that only if you are in a flood zone, as determined by the government. In addition, you will have to buy that by visiting a special site.

The Extended Replacement Cost coverage is something curious if you have never lived through a disaster within your area.

Basically, after a huge hurricane, for instance, a massive number of homes need to be rebuilt or repaired. It creates a problem of too little supply of building products pit against too great of a demand.

For instance, if your local building supply store is normally well-stocked, there would be a run on goods, as everyone dashes over to the store to rebuild. It may create a spike in building product costs too, as sick as that may seem to your sensibilities.

  1. Price gauging
  2. Supply and demand issues
  3. Solution is Extended Replacement Coverage

When you buy Extended Replacement Coverage, your insurance carrier will foot the cost of the inflated pricing for you.

Remember, homeowners insurance is all about the emergency situation that comes down to re-building your home.

Anything else is optional. This line of coverage ensures you are not on the line for thousands of dollars extra in building costs.

Another area of coverage that is essential when you think about rebuilding after an emergency situation, is Inflation Guard. Inflation Guard basically ensures that even when faced with rebuilding, if inflation pushed up the cost of goods since you wrote your policy, the insurer will cover it for you.

An example is this. Imagine your house was newly built 20 years ago, so you bought sufficient insurance from the same carrier you have today. Two decades later, it is not hard to imagine that inflation has increased the cost of building materials and labor that would rebuild your home.

Inflation guard is what protects against such rises in costs. Otherwise, you would be remunerated for the amount of money it cost to build your home 20 years ago. Yes, you would be held financially responsible for the difference in costs. It could hold up your ability to get back to living your life.

Basically, any insurance that gets your house rebuilt faster, properly, and without you owing additional money is the ideal for an emergency situation.

Covering Personal Property Losses

comparing home insuranceWhen you are buying your insurance coverage, it may be tempting to over-buy on coverage. Realize that you do not want to be seen as the family that just makes claims over everything, because you bought the insurance and feel entitled to something in return.

Essentially, the insurance companies pick up and flag your account.

When it comes time to renew, you may pay steep price increases, or might be canceled, or just as well, or not offered policies by other carriers. Get a fireproof and weather proof safe and bolt it to a concrete floor.

Keep valuables such as expensive handbags and fine and heirloom jewelry in such places. Keep them out of sight of burglars too.

Taking precautions, such as not putting cash under a mattress, where fire may ravage it, or a burglar would look, is smart. Use that same safe to store cash, for instance. Any ways you can prevent claims is wise and will save you more money

Replacement Cost Coverage is another item that many who are looking at personal property coverage need to consider. This means that your belongings will be insured by the carrier, regardless of shape, wear, tear, and age. In other words, if you have a television, your insurer will pay you the money to replace it with a new television, whether it is 10 or one year old.

The American Insurance Association provides tips on winter weather preparation. The idea is to practice preventative maintenance to prevent insurance claims. Keeping claims null makes for lower rates for your household and the rest of people who are buying insurance.

Such things as keeping gutters clean, inspecting and replacing flashing that’s given in to elements, keeps you comfortable and reduces damage risk. Keeping the temperature in your house above 55 degrees in insulated homes is best to prevent bursting pipes.

In Southern states, where pipes are exposed, you may have to let water drip to prevent pipes from bursting. In addition, keeping heat up also maintains pipe temperatures above freezing.

Like Clockwork

Check that carbon monoxide monitors and smoke detectors are working an fitted with fresh batteries twice a year. It is recommended as you go through your home to change clocks forward or backward that you also change the batteries on these devices.

Likewise, running the air conditioning in summer months prevents mold growth in particularly hot and humid climates. Ensure you get your chimney cleaned annually and have the heater and air conditioning systems serviced twice yearly. It will keep it running properly and keep it working efficiently for a more comfortable home.

For additional information about buying homeowners insurance, check out one beginner’s guide to shopping for coverage.

Comparing Home Insurance Products

home insurance companiesIn addition to figuring out what coverage to buy, you need to know how to shop online for coverage. Basically, input your unique details, and you will receive quotes.

Be honest, because if you lie you may find your insurance gets cancelled or your claims get denied if you ever need to make one.

Once you have entered your information, you might be overwhelmed to see all of the companies who have many products for you. Narrow down the list by only considering insurers who make the corporate ratings grades.

Anything A and beyond qualifies as fiscally healthy enough to withstand paying claims and staying in business.

Check out the likes of A.M. Best and Moody’s for such information. From there, compare the limits, deductibles, and coverage offerings. Make sure they all offer what you want at the best price.

Ideally, you also want to find the companies known for providing exceptionally good customer service.

Beyond that, you want to vet out the insurers to determine which one also handles claims efficiently and quickly, paying valid claims without fussing at its financial source — you.

It is not a particularly hard product to shop for, but it can be a daunting experience buying homeowners insurance. Learn the basics and you will have a much easier time shopping for the best value available on your block.

Use the FREE comparison tool below to start your search for home insurance.