Home Owner Insurance Quote Buyer's Guide

Since buying a home may be the biggest investment of your life, you need to make sure that you have a homeowners insurance policy that will keep you fully protected. Here is our guide to buying the best homeowners insurance policy.

What is Covered: Most homeowners insurance policies provide coverage for damage caused by fire, theft, lightning, frozen pipes, smoke, ice, and snow. You will also want to make sure that your quote provides coverage for liability claims, legal costs if a lawsuit is brought forth, and medical payments.

What is Not Covered: The majority of homeowners insurance policies do not include damages caused by acts of war, flood, earthquake, terrorism, or nuclear accidents. You will also need to make sure that you have an endorsement that covers items such as furs, watches, rings, antiques, and other valuables.

How Much Insurance You Need: When taking out a mortgage, the lender will require that you purchase a minimum amount of insurance for the home that you are interested in. Unfortunately, this is not always the actual amount of coverage that you need. You will instead want to get a homeowners insurance quote for what it would cost you to rebuild your home from scratch. This may be a better amount to go by.

Replacement Cost Coverage: Consider obtaining homeowners insurance quotes that include replacement cost coverage. The actual cash value of a policy offers a payout equal to the replacement of the property, less depreciation. Replacement cost may be more expensive, but it will pay for the full value of your home today; not the depreciated value.

Saving on Premiums: Having a deductible in place will lower your premium. If something were to happen you would have to pay this deductible, but until then, you will save money. Also, do not forget that things such as fire alarms, sprinklers, and a home security system can lower your premium.

Comparison Shopping: Get quotes from more than one insurer before you buy. But always keep in mind that the lowest price is not always the best deal. Carefully compare each quote, and then decide which policy is best before signing on the dotted line.