Estimating Homeowners Insurance
Financially responsible people know where they spend their money without becoming cheapskates. By planning ahead, effectively estimating expenses and placing proper value on quality, they balance their financial lives.
Their financial formula for success includes an annual estimate of homeowners insurance.
The wonders of the Internet give you a lot of financial power. Input the details of your present situation and you receive a host of quotes to compare. A little bit of legwork goes a long way.
Use the FREE tool above to start your search for homeowners insurance.
Steps to Estimate Homeowners Insurance
Start by collecting information and answering questions.
- An easy way to begin is simply looking at your present policy. What coverage have you bought in the past? Is it relevant for your next policy period?
- Has your financial picture gotten bleak or brighter, such as making more or less money this year than last?
- Have you added an addition, installed a new hot water heater or mad other improvements that prevent claims?
- Update your household inventory.
If you have bought any new items, add their serial numbers and receipts to your files.
Harness the power of time. If you know your policy comes due in January every year, start comparing homeowners insurance quotes in September or October. It makes lee-way to make improvements that will chip away at the cost of insurance.
The beauty of home insurance quotes is that you are able to play the game of what-if to see how changes will impact your premiums.
Some what-ifs to consider:
- What if you increase the deductible?
- What if you install an alarm system?
- What if you pay for fire and security monitoring?
- What if you install a sprinkler system?
- What if you install new locks?
- What if you buy new appliances?
Passive Claims-Free Strategies
Items such as buying new appliances, cutting back tree limbs that hang over your house or fixing the uneven front walk will not save you on insurance premiums. They are methods that contribute to a claims-free existence, which will save you money by preventing accidents and claims.
Other ways to prevent claims include adding plenty of outdoor lighting and creating unobstructed views of your house to stop thieves from targeting you for a break-in. Another area includes preventing expensive jewelry from being stolen.
Explore Savings Offers from Insurers
Insurance companies want your business. They want to write a policy for you. Some carriers give an enticing new-customer premium, which might undercut the pricing of your present insurance company.
Offers to give multi-line discounts for signing up for multiple insurance products with one insurer is another popular savings tactic.
Thinking about Moving on Up?
Maybe your family is expanding and you need a bigger home. Another way to be prepared for the long-haul expenses of a new home is to plan ahead. For every home that is on you radar, compare online insurance rates because they are free and easy to use.
In return, you will receive some clues about your potential new neighborhood and house. The insurance rates are determined by every house's individual claim's history, the crime level of a neighborhood, effectiveness of emergency response and the construction of the house.
Keep It Simple
A simple way to estimate coverage that you need is to take the square footage of your house and find out how much it would cost to rebuild. Add in the inventory, such as the new high-end kitchen appliances the new windows and central air and heating system you added last year.
The thought of going out and re-buying all your material possessions is unpleasant, especially if it is because the reason for the shopping spree is a fire that destroyed your life for instance. Policies that provide coverage that reimburse at today's pricing is preferred over actual value coverage.
In general, you may find that the insurance companies automatically include replacement cost coverage for your structure, but may slink in actual value coverage for your personal belongings. Make it easier on yourself and request quotes for replacement coverage across the policy.
Food for Thought
Familiarizing yourself with actual insurance statistics provides understanding of typically why people make claims. Check out the Insurance Institute's numbers on housing claims.
The biggest claims fall into the following categories:
- Clothing
- Jewelry
- Electronics
- The house is fourth on the list of claims, though theft falls fairly low on the list the nature of claims. The good news is that more and more homeowners are listening to the industry's advice and actually completing their personal belonging inventories. Three out of five households are actually completing this extra step.
One piece of information makes it even more compelling to make saving money on policies a priority. Homeowners insurance has risen markedly in the past five years. Notice that jewelry made up the greatest claims. Install a safe that is either bolted to the floor or encapsulated into a wall to prevent burglars from taking the safe with them. Likewise, expensive purse collections are ideally stored in a safe as well.
Talk to an Agent
When you have narrowed down your options and are done comparing quotes, it is a good idea to speak with an insurance agent or broker. The more details you offer up means more thorough coverage for you. For instance, if you just started your dream business in your house, you need to buy a separate business owner's policy. Otherwise, you are out of luck if your expensive wares or office equipment burn with your house.
It may not be obvious, but anything to do with motor vehicle claims, even with damages occurring on your property, will involve auto insurance. So, again, talk to your agent to discuss purchasing all of your policies with one agent. It might translate to big savings.
Understanding Potential Damages
The Insurance Institute lists damage, where the Insurance Institute for Business & Home Safety shows damages occurring. This organization does scenario testing and research to contribute to safer outcomes. It is worth taking a look to find tips on keeping your house and family safe during storms.
Of course, keep in mind that different types of storms and disasters hit regionally. For that reason, check out local or statewide insurance organizations that dedicate their resources to fully knowing the types of situations you may see in your home. Such groups, like the Ohio Insurance Institute serve in this capacity.
Anytime you are approaching financial outlays especially related to the home, make planning a priority. Start comparing quotes for homeowners insurance months before your policy is set to renew. Making an estimate and figuring out ways to save money will help you in the long run.
Be sure to use the FREE comparison tool below to start your search!