How to Get the Best Homeowners Insurance Quotes
Insuring your home isn't just the smart thing to do - it's also a necessity. You don't want to be left standing with an astronomical bill if a natural disaster hits your house. Insurance can also spare you from paying for expensive repairs if a tree falls on your dwelling or visitors injure themselves on your property. Furthermore, homeowners insurance can cover the property inside your house.
However, finding the plan that suits your needs and fits your budget can be a daunting task. Thankfully, there are steps you as a consumer can take to ensure you get the best homeowners insurance quotes and coverage.
If you're planning to buy your first house or find a new plan for your current home, here are a few tips you should keep in mind:
Before Comparing Quotes
Different Policies
Before you start an online search to compare quotes, define what kind of coverage you need for your home. An insurance policy could include add-ons you don't need. If you have a condominium, you will want to purchase a homeowners policy that specifically covers a condo rather than a mobile home or single-family unit, U.S. News and World Report notes.
An HO-2 is a broad insurance policy that protects against a certain number of hazards to your home that the insurance agent lists out in the contract, while an HO-3 goes one step further in its extensiveness by covering all accidents that are not specifically excluded in the policy.
You must also take the age of your house under consideration before buying an insurance policy, since some plans cover recently built and well-maintained homes while others specifically cover older residences.
Whichever plan you decide to go with, don't underinsure your home or you could be left with a hefty bill if disaster strikes.
Policy Details
Always read over the fine print of a homeowners insurance policy before signing it. Some contracts will not cover hail damage or other smaller accidents involving your home if your residence was built a decade ago, Consumer Reports says. If your policy's deductible includes liability and personal property coverage, that will also affect your insurance quote.
Claims Turnaround
Before purchasing a policy, it's smart to find out how fast the insurance company processes claims. Consumer Reports regularly publishes ratings for larger insurers, but it's best to be upfront with the company and ask them how long you should expect to wait before the claim is finalized.
How to Get a Good Rate
After you know what kind of coverage your house or condo needs, it's time to find yourself a good quote. Fortunately, there are numerous strategies you can use to obtain the best rate possible.
Check With Your State
CNN Money advises quote hunters to contact their state insurance departments since some provide plan comparison help and also offer websites to search for smaller companies that could provide cheaper rates. The price of insuring your home can differ from state to state, especially if your house is in a flood plain or an area more prone to natural disasters. This could make your policy pretty expensive and keep you from finding a cheaper rate. However, it's worthwhile to search for a more inexpensive quote every year, CNN Money notes.
According to Consumer Reports, states such as California, Florida, New Jersey, New York and Texas have insurance departments that publish a list of rates for homeowners to compare.
Consult Friends and Family
Get advice from your friends and family about their coverage and if their insurer processes claims in a fair and timely manner. Money Choice recommends checking in with people you know and trust to ask how their policies are working for them. A personal referral can help save you money and find a better rate.
Work With One Insurer
One easy way to get a good quote is by using one company for both your home and auto insurance. Using the same insurer for multiple policies can possibly save you 30 percent on your overall bill, Brad Lemons, a vice president at Columbus, Ohio-based Nationwide Insurance, tells Bankrate. According to Bankrate, not only will bundling plans together give you a better rate, you'll also only need to work with one company to handle your claims for both your house and car.
Look for Good Behavior Discounts
Put your history of dependable behavior to use to get a good quote. A high credit score can reduce your monthly premiums. Insurance companies use a host of information to determine what a good score is and how much it can decrease the monthly payments. Bankrate advises shoppers to check their credit scores and make sure the insurers look at the right one.
Besides good credit, some insurers also offer discounts for non-smokers and senior citizens, CNN Money reports.
Prepare Your House for Disaster
Getting your home ready for anything that Mother Nature throws your way can also get you a good rate and bring your monthly premiums down. This is especially true if your residence is in a particularly disaster-prone area of the country. Not only should you take the usual precautions, such as installing smoke and fire alarms, you should also consider things like putting a fire-resistant roof on your house.
If your home is in an area that experiences hurricanes, add storm shutters to your windows and hurricane-resistant siding and roofing that can endure high-speed winds. Prepare your home for an earthquake by checking your home's frame and foundation to ensure it's bolted down properly.
Disaster-preparedness can save you up to 30 percent in certain states, Bankrate says.
Installing an alarm system that can quickly alert a central office of a burglar, carbon monoxide leak or fire also helps. The system can relay a fast message to police and the fire department almost instantaneously, further cutting down on your premiums. Bill Wilson, an associate vice president of the Independent Insurance Agents and Brokers of America, says a state-of-the-art alarm system that monitors a residence 24/7 can lower quotes by as much as 10 percent.
From getting your house ready for a disaster to looking for offered discounts before you buy, being prepared will get you the insurance quote you want.