Tips and tricks to enjoy cheap home insurance quotes:
A few decades ago, who would have thought that buying homeowners insurance could be so easy? Gone are the days when one had to spend hours together wandering around different insurance companies, calling them over and over again just to compare some quotes from two or more of them. Shopping for insurance online has made it very convenient for buyers to sit in the comfort of their homes and compare quotes from various companies to find cheap homeowners insurance. One can easily get away from all the hassles and get hundreds of quotes from both local and national insurance companies just by giving a few details.
That being said, some people may not like giving out information online to search for cheap home insurance, because some tools also ask for personal credentials. But one should not worry about this issue anymore, because online tools these days only ask for the buyer’s zip code and that’s it, a complete list of quotes from well-known insurance companies from more than 50 states will appear on the screen. This online shopping method to find cheap home insurance quotes is easy, fast and above all free.
Getting the best and cheapest home insurance is something every online shopper looks for. But when searching for the cheapest homeowners insurance quotes, one should not miss out on the real benefit of having homeowners insurance. Full coverage home insurance is protection for the home and the property within it. Therefore, it is not worth comparing insurance quotes based simply on their cheap rates. One must be smart enough to identify affordable quotes that provide the full benefits of having home insurance instead of just going for some cheap homeowners insurance quotes that are really not worth the money.
But one need not think that in order to avail of full coverage home insurance, one will have to pay too many premiums. It is definitely possible to enjoy low cost homeowners insurance and at the same time get a decent coverage plan. To choose cheap homeowners insurance quotes, you must first learn about the different types of coverage plans available and finally decide which one best suits your needs.
What does a homeowners insurance policy cover?
According to the Insurance Information Institute (III), home insurance is divided into different categories, which are called HO-1, HO-2, HO-3, HO-4, and so on up to HO-8. Out of all these policies, the first type i.e. HO-1 is no longer available as it provides a very basic coverage scheme. The other policies are discussed below:
HO-2 and HO-3: These two policies are the most common. The HO-2 policy is also known as a ‘broad form policy’ and HO-3 as a ‘special form policy’. People who have this type of coverage can claim money in any of the following 16 situations:
1. Damage caused by artificially generated current shocks.
2. Unexpected damage caused by aircraft
3. House-damaging vehicle riots
4. Damage due to falling objects
5. Damage to the home from heavy snowfall, ice, or the weight of sleet
6. Lightning or bursts of fire
7. Damage from Volcanoes
8. Windstorm damage
9. Unpredictable explosions
10. Damage caused by excess smoke
11. Malicious Mischief
12. Loss of belongings due to theft/robbery
13. Damage to home or other possessions due to riots or rallies
14. Accidental damage such as cracked or swollen appearance of appliances such as air conditioners, water heaters, and fire protectors.
15. Damage caused to electrical appliances by extreme cold weather that causes them to freeze.
16. Damage due to steam or water leaks from water heaters, air conditioners, fire protectors, or other appliances.
While both HO-2 and HO-3 provide coverage for damage caused by the above 16 problems, there is a slight difference that makes one more advantageous than the other. The HO-2 policy does not provide coverage for damages other than the list above. Whereas, the HO-3 policy not only covers the damages mentioned above, but it will also provide coverage for any other type of damage except some natural disasters like earthquakes, floods, and other serious issues like nuclear disasters, wars, and plagues.
HO-5 – This policy is similar to the HO-3, but with an extension that also provides coverage for one’s possessions in the home.
Special policies:
HO-4: This policy is special in that it provides coverage for renters.
HO-6: Coverage for condominium owners can be taken advantage of by opting for this policy.
HO-7: If one is looking for cheap mobile home insurance, then the HO-7 policy is the right choice.
HO-8: If the house you live in is an older construction, choosing the HO-8 policy will help you get cheap home insurance.
What damages are not covered?
The following are damages that are not covered by any type of home insurance and require separate policies for protection:
â— Earthquakes
â— landslides
â—Sinks
â— Floods
â— Sewage damage
â— Damages due to negligence
â— Pest damage
How to calculate home insurance?
Another important element in finding affordable homeowners insurance is knowing how much insurance is actually needed. This estimate will help the owner to have an idea of the cost for damages or loss of possession; he/she can face in case of any calamity and then properly judge the amount of home insurance she should avail. These are the basic steps with which home insurance can be estimated:
â— The first step in calculating homeowners insurance is to estimate the total cost of rebuilding the home after major damage. This calculation must be made considering all the costs at the rates that the house has been built.
• Second, one must estimate the total cost of all the possessions one might think would be damaged in the event of any disaster. Experts suggest that the cost of possessions or property should generally amount to 50-75% of the cost of rebuilding the house. For example, if one estimates the cost to rebuild at $250,000, then the cost of possessions should be estimated at $125,000. Also, expensive jewelry or gadgets will require additional coverage.
â— The next step is to calculate liability coverage, that is, the amount one would be required to pay if someone is injured on the owner’s property. This amount could range from $100,000 to $500,000.
â— The final step is to estimate the additional charges one might face. This includes damage from natural disasters that is not covered by home insurance policies.
Therefore, careful examination and estimation of all the points discussed above can help you get the best and cheapest home insurance possible, while enjoying maximum benefits.