Most mortgage lenders require homeowners to have home insurance before they qualify for a loan.
Your homeowners insurance protects your life’s biggest investment. Whether a fly ball smashed a window or a fire destroyed part of your home, your homeowners insurance will help cover all your expenses.
Your premium can change depending on:
- Where you live.
- How old your house is.
- Your credit history.
- What the property is used for.
- Previous claims made by past residents.
Choosing the right insurance company is incredibly important during this process. Quote Purple will only show you quotes from the best insurance companies for you. No more spending hours searching through hundreds of quotes. Quote Purple only compares the best quotes.
Where you live
If you live in a state that frequently has natural disasters like tornadoes, hurricanes, and floods, you should expect to pay more for your homeowners insurance. However, if you live somewhere where these disasters don’t occur, or the property value is low, then homeowners should expect to see a lower insurance premium.
Finding The Right Homeowners Coverage
When comparing homeowners insurance quotes, consider where you live, and what that can mean for your coverage. It’s important to consider what you need, and what may not be necessary for your home.
The four most common forms of coverage are:
Dwelling coverage
Dwelling coverage covers the cost of any structural damage to your home. This coverage normally extends to outside structures like sheds and garages if a natural disaster occurs.
Be sure to ask your insurance provider for information on whether your policy has enough to completely rebuild any structures if necessary.
Personal property coverage
This coverage protects any high-value personal property damaged or stolen from your home. This coverage can replace any high-value items from furniture to firearms.
Liability coverage
This coverage will cover any incidents that name you as the legally liable party. This can be used to cover unintentional damage to other’s property such as your dog digging holes under a neighbor’s fence, or a friend hurting themselves on a loose stair.
Loss of use coverage
This coverage provides some assistance to living expenses if your home becomes uninhabitable. Remember you will only be reimbursed for the housing expenses themselves, not any additional costs. Ask your insurance provider for a detailed list on what their loss of use packages will cover.
Adjustable factors
Although there are fixed rates based on your home, such as your home’s age, but there are some options that can adjust your homeowners insurance.
Remember to consider:
- How much coverage you’ll need for liability and personal property, as they are not as impactful as dwelling coverage.
- Paying a higher deductible will cost you less in premiums.
- Bundling your auto and home insurance for more discounts.
- Home insurance also discounts you for infrequent claims and implementing safety precautions.
Be sure to speak with your insurance provider to see what kinds of adjustable factors they offer, or ways you can receive discounts on your home’s premium.
Also Read: 5 Safety Feature To Decrease Your Homeowners Premium
Price and policy
A company’s price and policy will determine what kind of price for the amount of protection you can expect from your insurance provider. These providers may have packages that cover:
- Damage from theft.
- Fire and explosion.
- Vandalism.
- Flying or falling objects.
- Civil unrest or riot.
