How to Compare Homeowners Insurance Quotes

by Susan Paige on March 18, 2020 · 0 comments

After purchasing a new home, you want to make sure you are getting the best insurance coverage for the property and your belongings. If you’re like most people, you’ll be looking for the cheapest homeowners insurance that gets you the best coverage.

In theory, accomplishing this goal sounds easy. However, once you start going through insurance policies and reading through documents, you may find that this is more complicated (and confusing) than you anticipated. To make things easier and less stressful, below are some insights on how you can compare homeowners insurance quotes like a pro.

Know What Is Included in the Policy

Before you can compare quotes, it’s helpful to have an idea about what is included in each policy. This will ensure that you know exactly what each one is talking about. Below are the different coverages that you can find in a typical insurance policy:

Your House

This is often referred to as “dwelling coverage,” and it will include your home and everything that is attached to it, including the garage, in-ground pool, chimney, etc.

Other Structures

These include the other items on your property, such as the driveway, fence, or the shed.

Your Belongings

Your personal property is included in most basic insurance plans. However, it’s important to note that there may be limits on certain valuables, including artwork, jewelry, or antiques. Knowing if your policy has a limit will allow you to get extra coverage so that you are reimbursed the full amount if any of these items are stolen or damaged.

Additional Living Expenses

If you are not able to live in your home due to a fire, mandatory evacuation, or other issues, your insurance policy will have a “loss of use” clause. This will cover the cost of temporary housing and some basic living expenses, which may include food, parking, or laundry.

Personal Liability

No matter how safe you try to make your property, accidents can happen. When they do, your insurance will be there to help cover the costs. Personal liability coverage usually only applies to guests that visit your property.

Medical Fees

Personal liability only kicks in when you get sued, but medical payments will cover any costs that you might incur if someone gets injured on your property. Again, this is in place to cover medical costs that might arise if a guest gets hurt at your home.

Comparing Homeowners Insurance Policies

Now that you have the basics of what’s included in a homeowners insurance policy, you can start comparing policies to find the cheapest homeowners insurance that will work for you. When it comes to looking at the prices, you’ll want to make sure that you are comparing apples to apples. Make sure that each policy contains the information discussed above and look at how much each policy costs. Then, you’ll want to look at the deductible of each policy, as this can have a huge impact on how much you pay each month.

In general, a higher deductible means that you will pay a lower monthly payment. However, if something happens to your house or your belongings, you will have to pay the deductible out of your pocket before your insurance covers the rest. 

Other factors that impact how much you pay each month also include any extras that you might add to your policy or if you decide to bundle your home and auto insurance together. Should any questions arise during the insurance policy comparison process, consider talking to a professional. They’ll be able to walk you through the steps and help you find the insurance that’s right for you.

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