Did you know that when you buy a home that you’re responsble for getting your own homeowner’s insurance? If you own a mobile home, you’re responsible for getting a separate home owner’s policy or homeowners insurance quote. Both mobile homes and traditional homes are insurable by their respective insurance companies. It doesn’t matter what kind of insurance coverage you’re going to purchase because your house, RV, or boat is your responsibility to insure.
Homeowners insurance quote can be a baffling and complex subject, and homeowners’ insurance companies are equally confusing. How would a rookie plumber with a D.O.B. of 1950 compare to a master plumber who has been plumbing for two decades?
The Best Advices
- If you were looking for a job, would you ask a plumber to look at your house and give you an estimate? Absolutely not, because that isn’t necessary for a homeowner’s insurance comparison. The first thing you want to do is ask a sales representative for their own price and compare it against your deductible, deductible charges, agency charges, premium fees, administrative fees, and so on. Even with a standard homeowner’s policy, there can be hundreds of fees. Since these fees vary significantly from company to company, it’s important to really get the details to determine what you can and can’t afford. In addition, you’ll want to read the policy thoroughly. Review the terms of your policy frequently to understand how it affects your rates.
- It’s easy to confuse rates with deductibles. There are two different kinds of deductibles: Primary and umbrella. They differ in their effectiveness. An umbrella deductible is a percentage of the claim. In the case of a windstorm or hurricane, the umbrella deductible is usually 75 percent of the loss, while the primary deductible is usually 35 percent.
- It’s tempting to think a better deductible would mean a lower rate, but this is only true if you never have any claims. The lower the deductible, the less coverage you will get, so make sure to ask the insurance company exactly how much of a claim they will cover. If they say they will only pay 75 percent of the claim, it might be better to select the high deductible so that you have more coverage for your claim.
- You’ll need to do your own research on the companies you are considering. By doing your research beforehand, you’ll be more inclined to select a company you can rely on.
- Paying a premium that is higher than you expected isn’t a sure sign of a bad company. If you know exactly how much you can afford, you can evaluate a homeowners insurance quote on the specifics, rather than jumping to any conclusions based on your “gut” feelings.
- Paying a premium that is lower than you expected isn’t a sure sign of a good company. You will know whether a company is legitimate or not by looking at the fine print. When you submit a quote to a company, you should be able to get a copy of the policy. The policy should include information on how much coverage you will receive, the deductibles and whether the company will pay a part of the claim, as well as what your premiums will be per year.
- Don’t assume a company is reputable just because it has a high-quality rating and a lot of satisfied customers. Always read through the fine print to make sure you aren’t buying a policy that is going to turn out to be a disaster.
- There are many different types of companies to choose from when shopping for homeowners’ insurance quotes, so know what type of policy you want before going shopping. If you don’t need to file claims and want a policy that is perfect for homeowners, a standard homeowner’s policy may be the way to go. If you have plans to be hit by fire, earthquakes, or other catastrophes, consider a standard commercial policy. If you have an accident and your children are involved, the claim may not be covered, which could be disastrous for a parent.
- Find a company giving homeowners insurance quotes that you trust and is reputable. Avoid going with companies that use a long-term, high-cost provider of homeowners insurance quotes. At the end of the day, you need to be sure that the company you choose is reputable and knowledgeable about your area.
Factors to Consider Before Applying for Homeowners Insurance Quotes
If you are a homeowner, you want to keep your house and its contents safe from burglars, vandals and other perils that could damage your property. If your insurer of choice does not offer adequate coverage for your particular needs, you’ll have to either pay more than you need to or find another company. Before you apply for your first quote, here are some important factors to consider:
Certainty of Service
As the name suggests, the most important feature a homeowner insurance policy offers are certainty of service. This is the “first-dollar” clause, which means that your insurance company will pay for any damage caused by any of the pre-existing conditions that are covered by your policy. Some of these include flooding, fire and a home invasion that results in injury. Other conditions that the insurance company will cover include natural disasters, liability for injuries and loss due to theft or vandalism. While the exact coverage is determined based on your state’s law, some insurance companies even include the personal liability coverage if the policyholder is personally liable for any of the property damage.
Does The Firm Qualify?
Generally speaking, most homeowner’s insurance policies exclude homeowners from liability for incidents that occur on your own property (you’re not a resident of the house, for example). The exception to this is for renters, who are usually required to take out their own insurance. If you do not have renters’ insurance and your home is rented out, you may need a separate policy from your homeowner’s insurance company, depending on the type of policy you have. How do you know if a policy provider is willing to insure you? Check to see if they qualify for the “personal residential property” lines of coverage that typically apply to homeowners in most states.
Insurance Values Are Not Always Reliable
If you shop for quotes and find a company offering the lowest price, don’t take them at their word. Instead, check with other companies to see if they have similar quotes, and consider what else you can get for the same amount of money. Many policies are sold on a commission, so a reputable company may be willing to lower the price by as much as 20 percent to make sure that you are satisfied.
Only Purchasing What You Need
There is often no single right answer when it comes to choosing a home insurance policy. A homeowner’s policy is a complex set of terms that can be confusing even to experts. Instead of shopping around for the cheapest home insurance policy available, be sure to shop around for the policy that meets your specific needs.
It is also a good idea to consider what you will be spending your money on. If you are moving, insurance agents sometimes offer the option of a “buy one, get one free” program, which is a discount on the total amount of the policies, as long as the seller provides both policies. If your current home is sold, your new home will likely be covered by your current policy. If you are planning to rent out your home, your landlord may be willing to offer you a discount to have a separate renter’s policy included as part of the home insurance.
Watch out for scams
There are companies who make a good living scamming the consumer. If you are contacted by someone claiming to represent a reputable company, call them to confirm who they are, and if they cannot give you some solid answers, you should steer clear. The problem with this is that these scammers will target the homeowner who has the most at stake. These individuals are more likely to think “scam” and not “bait.” Scammers use false and misleading information to try and win the trust of homeowners through fake homeowners insurance quotes. They are in the home or are hiring someone to be in the home to watch over it. They often have a list of questions that need to be answered and may ask for information that is already on file with the company.
Some scammers also may tell a homeowner they are hiring someone to “repair” things in the home. This often means the scammers will try to install some type of air conditioning system or change the locks to the home. The common thread is that these scammers have no intention of repairing or repairing anything. They are just hoping to be the “fix-it” man. If you are asked to give out any personal information, such as a Social Security number, credit card information, or bank information, get a second opinion and speak with an insurance agent about the situation.
Homeowners insurance quotes are necessary to protect the homeowner, their home, and their belongings. However, it’s important that you do your research and make a good decision. Make sure you understand what a company does, what their coverage is, and what level of coverage is appropriate for your property. Don’t just rely on what you read in the literature; talk with a representative at the company and an agent who works for them, as well.