How to Get Affordable Home Insurance
Homeowners insurance is something you will need to have if you plan on buying a home. Although it is not required by law, it may be required by your mortgage lender. And, even if it isn’t, it is a good thing to have. There are different types of homeowners insurance available for different needs. The most basic policy is the HO1 policy and covers damage from 11 perils. For more coverage there are other policies, however on every policy type there are exclusions, which are things that are not covered. For some exclusions (such as flood damage) a separate policy can be purchased.
If you are wondering how to get affordable home insurance that gives you the coverage you need at a price you can handle, the best advice is to comparison shop. You might find that the exact same policy is priced differently by different insurance companies. Because of this, it helps to use a broker. Brokers are able to get you quotes from a variety of insurance companies and can help you select the best one. They already have working relationships with the insurers and can accomplish this in far less time than it would take you to inquire with each company. Also, they can do this with only one form rather than having to submit a request for a quote many times.
For convenience, consider using an online broker to get a quote. There are countless online brokers who offer homeowners insurance quotes for free. All you have to do is fill out a basic form that will ask you general information about the type of insurance you’re looking for and the property to be insured. Once this form has been electronically submitted you will get a number of quotes from different insurance companies. Even though quotes are just estimates, they can still give you a good idea of what you can expect to pay.
Another way to keep costs down when it comes to homeowners insurance is to only get the coverage you absolutely need or are required to have by your mortgage lender. Usually this is going to be the HO1 policy type. Perils covered by HO1 include fire, smoke, lightning, volcanoes, wind, hail, vandalism, theft, aircraft and vehicle accidents, explosions, riots and breakage of glass. HO1 also includes personal liability but excludes earthquake and flood damage. As previously mentioned protection to cover against damage from these exclusions can be purchased separately.
If you are looking for more coverage, speak to your insurance agent about the other types of policies which include but are not limited to HO2 and HO3. These policies still do not cover earthquake or flood damage but cover more perils than the basic HO1 policy type. Renters looking for insurance will want policy HO4, while those in condominiums are going to need HO6. There is even a type of homeowners insurance, HO8, which covers old houses that have unique insurance needs as compared with newly constructed homes.
An experienced insurance agent or broker can tell you more about how to get affordable home insurance. These professionals can talk to you about your property and how much coverage you can afford to purchase, then find a policy that works for your budget. Whether or not you will want to buy extra insurance for things like flood damage, earthquake damage, termites or other common exclusions depends on the location and type of home you have and whether or not you can afford the additional coverage. Those with homes in areas where these natural disasters may occur should seriously consider buying coverage, as it is something you will be glad to have if any floods or earthquakes do happen.