Home Insurance Quotes

Tips to Save Money on Your Homeowners Insurance

Purchasing property is typically the largest investment you will make, so naturally, the most important purchase you make afterwards is your homeowners insurance to protect your investment. However, choosing the right home insurance for you and deciding how much insurance you need can be difficult - unless you know where to start.

Start by splitting your homeowners insurance coverage needs into four key areas:

The structure of your house - If there is a natural or other disaster, you will want to be able to rebuild your home.

Your belongings - If your belongings are destroyed in the disaster, you will want to be able to replace everything.

Your living expenses - If you are forced out of your home due to a disaster, you will need to live somewhere while you rebuild.

Your liability to others - If someone is injured on your property, you need to be protected in case you get sued.

There are a few items to consider with each of these areas when talking with an agent and reviewing your free insurance quotes. Read below so you are well equipped when you request your free homeowners insurance quotes.

1. The Structure of your House
When reviewing how to save money on homeowners insurance, be sure to look for guaranteed or extended-replacement-value coverage. If there is a disaster, such as a flood or fire, you will want to be able to rebuild your home. Guaranteed-replacement-value covers the rebuilding of your home regardless of the cost, but it is not commonly offered. However, many companies offer extended-replacement-value insurance, which will cover up to 100% of the value of the home and a certain percentage of the rebuilding cost.

When choosing your home insurance policy, be sure to factor in inflation. Many homeowners insurance companies have inflation guard, which factors in the increasing costs of rebuilding. When you need to renew your policy, take into consideration the current market and make sure your coverage amounts are realistic. Also be sure to factor in any improvements or remodeling you've done that has added value to your home.

If you own a condo or co-op, there are additional considerations when deciding how to best protect your property. Make sure that the condo board or association has a policy that covers the common areas, and be sure you have a copy of the policy. Find out about the association bylaws so you know what portion of your condo or co-op you must insure. Typically condo and co-op owners need their contents policy to cover items such as cabinets and fixtures. Consider being insured with the same agency that holds your association's policy as they are more familiar with the property and you may get a discount.

If you own a condo or co-op, assessment coverage many be a good idea. Find out how much the condo association's policy covers in a loss or if there is a large deductible. In the case of an incident, this amount and additional costs will be split among the members in the form of an assessment. If you have assessment coverage, your insurance company will be responsible for any costs.

2. Your Belongings
Take inventory of your belongings. There are two steps in filing a claim. First you need to prove you owned certain items and then you must verify what they are worth. The best way to do this is to go through your house with a video camera, either one you rent or own. Walk through each room in your home, opening closets and jewelry boxes, making sure you get everything of value to you on tape. Remember to include your attic, basement and storage units. You can also take photos of items and make a list on paper. Be sure to keep these videos, photos and lists in a safe place, somewhere other than your home, like your office or a friend's house.

Find out about the claims process. Many plans may seem to offer the same amount of coverage, but when it comes to actually paying out after a loss, there could be some differences. When you are getting your homeowners insurance quotes, be sure to have the agent explain exactly how claims are processed, especially when it comes to writing you a check after a loss.

Ask your agent if you receive your entire claim right away or just a portion at a time. Does the home insurance company pay you for all the items you have lost or only the items that you actually replace? Do you have to wait until after you actually purchase the items and need to have a receipt in order to be reimbursed or is the money given up front? Is there a timetable on replacing your items?

Picture yourself and your family after a devastating fire ravished your home, taking the structure and all your belongings. You are living in a small, extended stay hotel room. It will take time to rebuild you home. You may not have any extra money to replace your items to be reimbursed and you may not have any space to hold these items until your home is rebuilt. What would you do if there was a time line on replacing items and you needed to pay for items up front and wait on a reimbursement check. This is why these questions are very important and you need to be sure to talk to your homeowners insurance agent about them.

Is a special policy, called a floater or endorsement, right for you? Some homeowners insurance policies have a limited amount that can be collect on more expensive items, such as electronic or technological equipment, jewelry, furs and collectibles. If you own any items like this, you may want to add a floater or endorsement policy to cover these items. This special policy will also work if you lose or damage certain items. For new items that would fall under this policy, add the receipt to your inventory and get a copy to your insurance agent. For older or collectable items, have an appraisal done and be sure to get a copy of this to your agent as well.

Keep in touch with your home insurance agent when there's a life-changing event. Are you planning to get married or divorced? Are your children moving out, or back in. Take these factors into consideration when determining what the value is of the items in your home. Keep your policies and inventories up to date.

3. Your Living Expenses
If you are forced out of your home due to a disaster, you and your family will need to live somewhere while you rebuild your home. Take into consideration where you will live and for about how long. Will you need to rent an apartment or hotel room or will you stay with friends or family? Will being displaced add to transportation issues to go to work or other locations? Depending on how long the process is, this could get rather expensive. Discuss this aspect with your insurance agent to find out the best way to handle this expense should you experience being displaced from your home.

4. Your Liability to Others
You may want to consider an umbrella policy. If someone is injured on your property, you need to be protected in case the injured party decides to sue. Liability insurance will pay for medical attention for anyone who is injured on your property, typically up to $300,000 on most homeowners policies. The problem is that if someone is going to bring an issue to court to collect damages, they are typically going to sue for more than the amount that you are covered for on your homeowners insurance policy. Usually the amount people sue for starts at one million dollars. When you are getting your homeowners insurance quotes, be sure to talk to your agent about whether you should consider an umbrella policy. If you have a large amount of assets, adding an umbrella policy would add extra liability coverage to your home and auto policy. They are fairly inexpensive, usually beginning at $200 - $300 annually.

Shop around to find the best coverage at the lowest possible price. Take these tips into consideration so you can find the right policy for you.