you are shopping around in home owners insurance. Brilliant, as any time one opens the door to disaster (and it may happen), proper policy may actually make the difference between a sleepless night and encountering economic mayhem.
However, prior to covering you, you got to have a quote. Not just any quote, however; but one that is correct, competitive and which will suit your requirements.
What Is a Homeowners Insurance Quote: First Things First.
A quotation of a home ownership insurance is not a guarantee. It is what an insurance firm thinks it will charge you to insure your house, your things, and your responsibility depending on your set of circumstances.
And now this is where it goes fascinating.
There will never be two quotes which are the same. Why? Since insurers consider a lot of variables, including the age of your roof and how near you are to a fire hydrant. Seriously.
The Science of a Quote
So how do we break it down. Once you ask a quote, you basically give out a picture of your life. The insurer then rips off the skin on this to crunch numbers and make risk evaluation.
They will enquire about:
The age, size, and materials of your home
The Zip code that it occupies (certain neighborhoods are more dangerous than others)
Your claims history (have you claimed previously)?
The magnitude of coverage that you desire, i.e. basic, broad or comprehensive
Such add-ons as flood or earthquake insurance
The result? A premium-or as it is commonly known the out of pocket annual price you pay on a yearly basis to cover your health care.
There are occasions when this number will shock you (in a nice way). Other times, it is not so much.
Not every Quote is the Same
Thing is this: One quote does not make it the quote of the year.
There are formulas, risk appetites and even preferences of insurance companies that vary. Certain people would adore the fact that your house is roofed new. Others? I really do not care. It is therefore worth shopping around. Honestly, it is not a good idea to just use one quote and leave it at that.
Compare coverages pro-line, use online tools, call sponsors. See the small print. Ask questions. Ask someone to second-read.
Still better–buy five.
The Way to Get a Quote That Fits You
Wanting a better quote? The following is how to do it:
Package policies (car and house = savings)
Increase your deductible (but cut it, or only do so, only when you can afford to do so)
Enhance the security of the house (alarms, deadbolts, smoke detectors, they all come in handy)
Enquire about discounts (loyalty, claims-free, new customer etc.).
Final Thoughts
Finding the lowest amount on the screen when considering a homeowners insurance quote is not the most important thing. It is really, it is the question of being able to get a hold of some kind of protection that works when you need it the most.
Be leisurely. Post intelligent questions. Compare wisely. And do not forget that a little bit of work today will save you a ton of extra grieving tomorrow.