Stop! Don’t enter your information on any ads you might get when searching for “home insurance quotes comparison”!
YOU WILL REGRET IT! Unless you like getting hammered with calls with people wanting to sell you. Then go ahead and put your information out there.
Also, watch out for brokers charging FEES! These greedy brokers kill me as they usually provide low service and overcharge.
Any add offering to comparison shop for you will most likely sell your information to a minimum of 3 agents if not more. You will be in their automatic dialer and be repeatedly called by filling out those forms.
What is home insurance?
Insurance industry jargon can be complex. In this article, we will hopefully educate you enough to know what questions to ask.
Home insurance is a type of insurance that covers damage to a policyholder’s home. It also covers personal belongings inside the home, as well as liability in the event that someone is injured on the property. Home insurance policies can be tailored to cover specific risks, such as fires, floods, or theft. They can also include additional coverage for things like jewelry or art collections.
Home insurance policies usually have a deductible, which is the amount of money that the policyholder must pay out-of-pocket before the insurance company pays its share.
Home insurance is usually offered as a package deal with other types of insurance, such as automobile insurance.
Isn’t all home insurance the same? Don’t they cover the same things? In one simple answer – NO
So you are probably not terribly interested in learning about insurance. You just need it because the mortgage company requires it.
There are various types of home insurance policies.
The first type is Dwelling Fire Polices, also known as DP1, DP2 and DP3. These usually are written as landlord policies. If you are buying an investment property, this is typically the type of policy you would need. Some people have many single-family homes, and there are even policies offering blanket protection.
A primary residence standard home insurance is an HO3 or HO5 policy. HO3 is the most significant percentage of the typical homeowner’s policy.
If you live in a condo, this would be known as an HO6.
The primary home policies coverages that you need to know:
In the market for home insurance? If so, you may be wondering what type of coverage is best for you. There are many different coverages and endorsements for home insurance policies. You can choose most of the coverages, but some come standard, and each one has its own set of benefits and drawbacks. Here’s a look at some of the most common types of home insurance policies:
HO-3 (This is the most common house insurance) Both Dwelling and Other Structures are covered under Open Perils. However, for personal property, it is only for named perils.
HO-5 offers the broadest home coverage. Dwelling, Other Structures, and Personal Property are all covered under Open Perils.
Open perils insurance is a type of insurance policy in which the insurer agrees to pay for all losses, except those expressly excluded in the policy. This type of policy is also known as an “all risks” policy. Open perils insurance aims to provide broad coverage for the insured against all possible losses, except those that are expressly excluded in the policy.
An HO3 open-perils policy covers your home and other structures for damage caused by events listed in the policy. Some standard policy exclusions include earth movement, earthquake, sinkhole, war, nuclear hazards, flooding, and mudflow.
Named-peril is an insurance term for a specific event covered by a policy. Named perils policies are less common than all-risk policies, but they can be cheaper if the insured is only concerned with a limited number of risks. Named peril policies usually cover events such as fire, theft, and wind damage. In addition, named peril is common on Coverage C, known as Personal Property.
Other quick definitions of typical insurance coverage terms on a policy (Some may vary, so please consult with a licensed agent):
Coverage A (Dwelling) Covers the cost to rebuild or repair the structure of your home
Coverage B (Other Structures) Covers the cost to rebuild or repair other structures that are detached from your home.
Coverage C (Personal Property) Covers the cost to replace your belongings (e.g., clothing, appliances, TVs, computers, furniture)
Coverage D (Loss of Use) Provides living expenses while your home is being repaired (e.g., hotel expenses and meals)
Coverage E (Liability) Is for bodily injury sustained by others where you are responsible.
Coverage F (Medical Payments) Is for medical expenses sustained by others you are responsible for when on your property.
All Perils Deductible is the amount you will pay if a covered claim occurs. Except sometimes there is a separate hurricane or wind and hail deductible. There are other separate deductibles for things like water backup.
Wind/Hail Deductible The amount you will pay if a covered claim occurs that is caused by wind or hail
Roof Settlement Type How roof repair or replacement is handled for a covered claim
(e.g. Replacement Cost or Actual Cash Value (ACV))
Building Ordinance or Law Coverage – From covered losses to your home being wholly or partly destroyed, ordinance or law coverage can help by providing funds to upgrade the home to guarantee it meets current building codes up to the coverage limits.
Ensure that you inform your agent if you have any Art collections, Gun collections, or Jewelry collections. Also, adding this type of coverage will likely be a significant premium increase.
Water backup insurance coverage – is for damage to your property from clogged sewer lines or sump pump failures.
Have a Homeowners’s association? Live in a condo? Make sure you get Loss Assessment coverage. What is loss assessment? If a homeowners’ association incurs an unexpected loss, it may bill back and divide the expense of the loss among the units or homeowner’s in the association. By having this coverage and if it meets the coverage requirements then the insurance will take care of the tab up to the limit minus the deductible.
Personal Offense – personal offense coverage is not included in the sorts of protection offered by your standard homeowner’s policy. Personal offense insurance is yet another coverage that you can buy on your homeowner’s insurance policy. Personal offense usually covers libel and/or slander, false arrest, detention or imprisonment, malicious prosecution, wrongful eviction, or wrongful entry plus the associated legal costs.
Who has the most affordable home insurance?
What is the average cost? There is no average cost. Many variables, from location to type of build, go into factoring your rate.
What is a good quote for home insurance? What is the national average price of home insurance? (It really depends on your location and home details)
How to get a homeowners insurance quote? Read below 😉 Our comparison tips are beneficial for anyone looking for protection on a house.
Does getting a home insurance quote affect credit score? No, it is a soft credit check. It should not affect your FICO score. Keep in mind that you have an insurance score, and your past claims and past coverages (History) will possibly affect your rate. To get a quote does require your personal information. A review of your insurance report will take place. Having state minimums on Auto Insurance will possibly affect your score. Some companies will also consider auto claims when rating for a home policy.
Who does the cheapest house insurance? Cheap is not a good word – How about the most bang for your buck?
Home Insurance Quotes Comparison Information that can be rate affecting:
Age of roof: It amazes me when people look at houses. They never look at the roof. To replace a roof today is very expensive, especially in states like Colorado, Arkansas, Missouri, Kansas, Nebraska, Florida, Montana, and many more. The number one claim is wind and hail, which mainly affect the roof.
Heating: Your home’s heating system can be rate affected due to age. Is it oil, gas, or electric heat?
Dog and Pets: Exotic animals and certain breeds of dogs can significantly impact your annual insurance premium. Often people say their dog is harmless. But what happens you take your dog to the dog park, and it attacks another dog at the park?
Pools and Trampolines will cause a higher rate with some companies. Think about a trampoline on a slight slope instead of level ground and no net. The liability risk is enormous. What happens if the trampoline is not stacked to the ground and a windstorm comes along? Not only can it damage your house as it flies off but your neighbors as well.
One of the agent’s jobs is to locate all discounts and rewards you can receive. So when they ask about education and your job, it can help with specific deals. Determined agents often ask these questions because they don’t want you missing out.
Do you run a business from home? Foot traffic is a big liability. For example, daycare, barbershop, or beauty salons are big no’s with carriers.
How to get home insurance quotes to compare homeowners insurance
When looking for home insurance quotes, it is essential to compare multiple companies’ rates and coverage limits. You can get home insurance quotes from various sources, including agents, brokers, and online providers. The best way to find the right policy for your needs is to shop around and compare rates.
A great way to get a complete comparison is to find a broker. A broker will be able to shop many carriers for you. Some of the main ones brokers use are Travelers, Safeco, Progressive, Nationwide, and State Auto. Keep in mind brokers will typically offer A plus rated carriers. If you have had many claims, especially water claims, then they may have to choose a lessor-rated carrier till those claims get older.
On the broker, DO NOT call an 800 number. 90% of these turn out to be call centers. Call centers have high turnovers and hire anyone who can get a license. Just because they have a license to sell insurance doesn’t mean they know what they are doing. Look for a broker where the agent will get the renewal commission; otherwise, it’s a turn-and-burn shop. Once they have sold you, they could care less. Brokers who earn the commission are more likely to quote you the best policy that gives you the most bang for your dollar.
Most professional brokerages will use Exlynx or another comparative rater system to shop numerous companies and find you the best price. This rating system is like a calculator for finding the best available rate in your area.
Next would be to contact a captive agent agency. These agents can offer one company. These would be State Farm, American Family, Shield of Shelter, Farmers, Country Financial, Farm Bureau, etc. I would call two of these.
Comparing home insurance quotes
Once quoted, don’t just take the lowest quote. If information by the agent was not entered correctly, like the age of the roof, this can come back and bite you. Keep in mind insurance companies do inspections. If you tell them the roof is only two years old or an unethical agent enters it that way you will have a lower rate to start. Also, insurance companies have the right to cancel your policy or re-rate it due to incorrect information. If you get a cancellation, this affects the insurance score we mentioned earlier.
When deciding on home insurance, most people are looking for the best deal. Comparing home insurance details is essential to find the best rate and coverage. Home insurance can be expensive, so finding a policy that fits your needs and budget is crucial.
Listen to the agents. I know it may be boring, but just because one is $100 less a year doesn’t mean it’s the best deal. Look at the coverages and deductibles before committing. Some policies often offer unique features and coverages for the customer. For example equipment breakdown and service line protection are two great endorsements you can add on.
Equipment breakdown is very inexpensive when added to a home insurance policy. Usually, the deductible is $500, and normally would repair things like a furnace, A/C unit, or water heater.
Service Line Protection takes care of those lines like your sewer or other utilities running into the house.
Ask about these coverages when getting your talking with the agent. If they seem to not have the answer quickly it probably means they are new. I would call another agent especially if you have money and assets to protect.
Keep in mind when looking at reviews on insurance companies that some reviewers shouldn’t be able to post relative to the size of the claim. It is amazing how people file so many small claims and expect an insurance company to pay. It’s these people who drive the cost of insurance through a roof. They then complain when the insurance company doesn’t bend over backwards for them or even pay on the claim filed. Insurance is meant for catastrophic losses not because you can’t plunge a toilet correctly. FYI two water claims big or small, will probably put you in the creek without a paddle.
Frequently people file claims without a second thought. That is where having an agent who cares will come in handy compared to the few dollars you might save. If you have an agent before you file a small claim, it might be wise to run it by them. Can you do this with an 800 number? A genuine agent could help you save thousands in future premiums if only you had someone to bounce your thoughts off. Top-of-the-line advice on matters like this is priceless. If you decide to go with the cheap side, keep in mind a $0 payout claim still affects your rate and can cause some companies to say no thank you to wanting your business.
Getting quotes and doing a home insurance comparison quote is essential. Keep in mind your house is most likely your biggest asset. Saving money by getting multiple insurance rates is important but being too frugal is bad. Get the right coverage for your house and get an insurance agent you can call and trust. When something happens to your home you will be glad to have someone to talk to other than the claims adjuster and some agent in a call center who is waiting for the lunch whistle to sound. Also when saying no to these agents remember they are providing this to you for free be nice and contact the other agent to let the know you went with someone else.
********* All terms vary from company to company make sure to read your policy and talk with a licensed professional in your state*******
Common home insurance questions:
What home insurance do I need? Read the page above and call an agent and they will help guide you through the process. Homes are unique and require different coverages for different states, mortgages, and types of homes.
Why have home insurance premiums gone up? Insurance premiums go up due to Replacement Cost Estimates which is the cost to rebuild homes in your area. Unfortunately, inflation on lumber and other goods to rebuild homes has skyrocketed. Storms that have happened in the area. Fraudulent claims are being filed on homes in places like Florida causing rates to jump. Here is a great press article on insurance fraud.
Does home insurance cover laptops? Generally yes but if you have a special laptop make sure to point that out to your agent. Keep in mind mysterious disappearance claim could cost you more in the long run. Having a great agent that you can talk to before filing a claim is priceless.
My home insurance was canceled? Call a broker agent now. Get the process started to get your home covered immediately. Be upfront as to why your insurance was canceled.
What is not covered by house insurance? That is a great question for the agent you purchased the policy from. Policies vary from company to company plus it is according to the coverage the agent put on your policy.
Should I get an insurance quote online? Calling an agent in a cubicle or one working from home now is a great way to get an estimate fast. The problem is will that agent be around after you close on the home insurance? Or is that agent in a boiler room call center? If you can’t get back ahold of that agent in the future I would not get a quote from them.
I am in Alaska who should I call for home insurance? Look for a local brokerage to help make sure you have the best policy for your extreme weather conditions.
Who has the best homeowners insurance in Alabama? Make sure to call a broker to help shop for your insurance. Travelers and Hanover have been producing the best rates I have seen.
Home insurance reviews for Arizona? Shopping your particular home and how much in assets you have to protect will determine the best coverage for you.
I am purchasing a home in Delaware who should I call for insurance? Call an independent agent they will shop numerous carriers for you.
I just moved to Washington and need insurance but don’t have an agent. Click an ad and talk to someone before handing out your information. If you don’t like their attitude or anything hang up and call someone else.
I just got my insurance canceled in California what do I do? I assume it is because you’re in a wildfire area. You might have to get the California wildfire plan it’s expensive. Calling around and shopping is the best advice I can give you.
Keep in mind finding a great agent who cares about protecting your assets is the most important thing. When being a member of F.I.R.E. (Financial Independence Retire Early) You don’t want to lose your Assets to an accident. That would be devastating.