When shopping for home insurance, there’s much more to consider than how much your coverage will cost. Your agent or insurance company will determine how much it would cost to replace your home and many of the items inside. Most standard policies will provide coverage for damage to your home (and many belongings) caused by theft, fire and lightning, smoke, frozen pipes, ice and snow.
The price you pay for insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Here are some things to consider when buying homeowners insurance:
Ask your friends, contact your state insurance department, check consumer guides, and contact insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. But don’t consider price alone. The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. When you’ve narrowed the field to three insurers, get price quotes.
Raise Your Deductible
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.
Don’t confuse what you paid for your house with rebuilding costs
The land under your house isn’t at risk from theft, windstorm, fire and the other perils covered in your homeowners policy, so don’t include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.