Comparing Home Insurance Policies – What First?

Gathering multiple online homeowners insurance quotes is the first step to protecting your home and saving money. Following are tips on comparing your options and identifying which quote is best for you:

Check Those Limits!

Hopefully, all of your online home insurance quotes were obtained using the same information; this approach will give you an “apples-to-apples” comparison. Review each quote carefully to ensure that the limits for property, liability, medical payments, loss of use and other indicated limits are the same.

Watch the Numbers!

If one of your quotes is significantly cheaper than others, raise your red flag. This lower quote could be an indication of a significant coverage gap. In addition to checking limits, review deductibles. Some policies may include a deductible that is based on a percentage of the home’s value at the time of the loss rather than a set dollar amount. A difference such as this could result in significant out-of-pocket expenses for you. Review each quote closely to ensure you will be getting a set deductible. 

Don’t Sacrifice Coverage!

Look for information about what the policy actually covers. It may have a fancy-sounding name such as “perils insured against” or just plain “form.” Regardless of the wording the company uses, this is where the policy spells out the types of losses that are covered and those that are not. An “Open Perils” or “Special Form” policy is preferred; because such a policy covers all losses unless specifically excluded.

Check Out Those Discounts!

Discounts are one way insurance companies compete for your business. Most discounts are available without sacrificing coverage. Discounts may be available for certain qualities of your home, such as a burglar alarm. Others may be company-specific, like a multi-policy discount. When comparing quotes be sure to consider both the immediate and long-term effects of discounts.

Learn About the Company!

Start comparing today! Get your free home insurance quote today.