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Cheap Homeowners Insurance

You can get cheap homeowners insurance to protect what is likely your most valuable asset. It may take a bit of time for you, a homeowner, to find cheap home insurance, but the effort will be worth it. Homeowners looking for insurance on the cheap need to be aware of the following strategies:

Cheap Homeowners Insurance: Shop Around To Find The Best Price

To get the best deal on your homeowners insurance, you will need to shop around. Compare the level of coverage you will be getting and the premium rates from at least 3 different insurance companies.

Don't look only at the amount of premiums the company wants to charge you. If you go with the cheapest option and you don't have adequate coverage for your home, then you haven't really obtained a good deal on your homeowners insurance.

You will also want to educate yourself about the different types of policies available. That way, you can make an informed decision about whether the policy you are considering is the right one for you.

Cheap Homeowners Insurance: Types Of Policies Available

A standard homeowners insurance policy will be referred to as one of the following:

  1. HO-A: Provides limited coverage; only the perils specifically referred to in the policy are covered
  2. HO-B: Gives the homeowner replacement cost coverage for a number of perils, except for those that are specifically mentioned in the policy
  3. HO-C: Provides the most extensive level of coverage to homeowners

Cheap Homeowners Insurance: Understanding Your Policy

When you are looking for homeowners insurance, you need to go over the policy provisions in detail so you understand exactly what perils you are covered for and which ones are excluded under the policy.

Check your policy to make sure that it includes coverage for the following:

  1. The Structure of Your Home
  2. Other Buildings on Your Property
  3. Your Home's Contents
  4. Liability Insurance
  5. Coverage for Additional Living Expenses

The part of your policy that deals with the structure of your home is what covers you if your home is damaged by fire, a hurricane, hail, lightning, and any other perils listed on the policy. The insurance company will pay to either have the structure repaired or rebuilt, depending on the extent of the damage.

Along with insuring your home, you will also want to make sure that other structures on your property are covered. Other structures include a garage, shed, retaining wall, fence, driveway or sidewalk.

You will also need coverage for your home's contents, including your personal property and clothing. It may be a little difficult to come up with a figure for these items. Consider for a moment how much it would cost to replace your home's contents if your house were damaged or someone broke in and stole them.

Plan to insure your home's contents for approximately 50-70% of the value of your home. It's a good idea to go through your home and make an inventory of all its contents for insurance purposes. When you go through this process, take photos and store them in a safe location to back up any possible claim on your insurance policy.

If you own antiques, expensive jewelry, furs, silverware, you may need to buy additional coverage for these items. Check with the insurance company to find out whether these items are covered under your policy automatically or if you need to buy a personal property endorsement for this purpose.

The policy you choose should cover your personal items even when you are away from home. This type of off-premises coverage may be limited to a certain percentage of your homeowners policy limits.

The liability protection portion of your homeowners insurance policy pays for legal expenses and damages caused by you or a family member if someone who visits your property is hurt. This portion of your policy also covers damages caused by your pets.

Your liability protection insurance will pay out up to your policy limits. Any money owed after the policy limits have been reached will need to be paid by you personally. While it is recommended that homeowners buy at least $300,000 in liability coverage in place, you may want to consider topping that amount up. Some homeowners carry $1 million in liability coverage.

While your home is being repaired or rebuilt, you need to find alternate accommodation and your additional living expenses coverage is in place to cover this expense. The insurance company will cover expenses incurred so that you can maintain a "normal standard of living." Check to make sure that you understand exactly what is covered and what the limits for this type of coverage are. It's a good idea to buy enough coverage so that this portion of your policy limits works out to approximately 20% of the value of your home.

Cheap Homeowners Insurance: Increase Your Deductible

Another way you can keep your rates for homeowners insurance down is to increase the amount of your deductible. This is the amount of money that you are responsible for paying before the insurance company will pay out on a claim.

If you decide to increase your deductible, be sure that you will be able to pay this amount if there is a loss. Compare premium rates with different deductible levels to work out whether carrying a higher deductible (and increasing your risk) makes sense when you take into account the savings you will get.

If the math doesn't add up in a way that makes sense to you, then you may be better off leaving the deductible amount where it is.

Cheap Homeowners Insurance: Keep Your Home In Good Repair

After you have made a claim on your homeowners policy, your premium rates are likely to increase. If you want to keep your costs down, it makes sense to avoid situations where you would need to make a claim in the first place. Taking steps to keep your home in good repair makes good sense.

Are you ready to start looking for cheap homeowners insurance today? Use the free home insurance quote tool at the top of this page to get the information you need. All you need to do is click on it.

Get started finding low cost homeowners insurance today!

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