Comparing online quotes on homeowners insurance can be unsettling for some prospective policyholders. Comparing the insurers’ reputation to the premiums – can be difficult. But you may be able to get an accurate quote if you know what to look for. That is what we are going to show you in this article.
Why Compare Online Quotes on Homeowners Insurance?
Why should you compare the home owner’s insurance quote in the first place? Let’s assume that your name is Andy. You are shopping around for homeowners’ insurance but you don’t want to pay a higher premium.
You happen upon an insurer’s website that charges a monthly premium. Then, on further research, you see another that charges a yearly premium.
Which would you likely go for? The answer is that both aspects present unique offers. The former allows you to pay a premium every month, thereby, cutting down the burden of paying in bulk. Whereas, you may want to pay at the end of the year so you can save the premium all at once.
So, the primary benefit of comparing homeowners’ insurance quotes is to have more options to explore.
Online Home Insurance Quote Comparison: Key Factors to Consider
Here are some of the most important factors to consider when comparing your homeowner’s insurance:
1. Ask for Recommendations
Word-of-the-mouth is still very active even in the highly-dominated digital marketing system. Consider asking friends and family members for recommendations on the homeowners’ insurance companies they have used.
Ask for their experience and an estimate of the amount payable as a premium. You can also turn to online forums to get other opinions before making a decision.
2. Run a Background Check on the Companies
Compare the trustworthiness of each of the homeowners’ insurance companies. This helps you to decide if they can be trusted with handling your property coverage or not.
To help you with this, here are some tips on how to check the trustworthiness of the company:
Reviews from Previous and Current Policyholders
Run a background check of the insurer on trusted review platforms, such as Trustpilot. Gauge the opinion of the previous and current policyholders by checking what they have to say about the company.
Tip: Focus more on the written reviews than the star ratings.
Check with AM Best
AM Best is an independent and reliable rating agency that helps gauge a company’s financial standing. Check if the insurance company is listed there. If so, what is its rating?
A homeowners insurance company with an A star rating gets more trust than one with a B star rating. This is because the rating depicts the insurer’s good financial standing.
3. What Are Your Needs?
What do you need the homeowners’ insurance policy for? Is it to protect your home from damages and a possible lawsuit from third parties? Or are you looking to get the coverage because you want to protect your personal belongings?
Other factors that should make up the personal needs for the coverage include:
What is the customer service of the homeowners’ insurance company like? Do they attend to complaints immediately? What is their resolution rate – do they resolve most of the issues brought before them?
Are other policyholders happy with the customer service? How can you reach the customer desk? Via telephone? Email? Or live chat? Those options should be readily available to give you several options to choose from.
4. Request Online Quotes on Homeowners’ Insurance from Multiple Providers
Now, visit the websites of the homeowners’ insurance companies you have narrowed down to before? Ask for quotes from their online quotation system.
If the online version isn’t available, consider placing a call to them. Alternatively, send an email with your homeowners’ insurance requirements and wait for a reply.
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5. Compare Your Options
The quote has arrived! Now, go ahead to compare the options added to the quote. Here are the most common coverage options to dwell on:
This type of coverage refers to the amount of money released when the insured person is legally liable for a claim. The claim can also be by a third party who got injured on your property.
While $100,000 is expected, you may check if the insurer can offer up to $300,000 worth of coverage.
Guaranteed Replacement Cost
Guaranteed Replacement Cost or GRC is the additional percentage the insurer pays for property damages. The additional percentage increase covers inflations in materials used for the replacement.
Replacement Cost Value (RCV)
The RCV is the amount of money paid by the insurance company. It covers the cost of rebuilding your damaged property.
This type of coverage covers the cost of repairing or rebuilding your damaged property. It also covers the cost of replacing the items inside the home.
Certain appliances and detachable structures can be replaced with this coverage.
Additional Living Expenses
This type of coverage covers homeowners whose property is under renovation. You may get up to 20% of the cost of insuring the home.
Your additional living expenses cover:
- The cost of getting temporal housing is pending when your home is repaired or rebuilt.
- Payment for minimal expenses, including groceries.
Personal Property Coverage
This coverage only covers your belongings, which fall under the policy. Expensive artworks and musical instruments are usually added as a rider.
What is the Average Premium on Homeowners’ Insurance?
The average amount payable varies by the insurance company and the payment options. You can get a discount if you are paying monthly, as against yearly. Also, the premiums may vary by the type of coverage and the insurance company. The average premium on homeowners insurance can be anywhere between $$85 and $120 for monthly payments. For yearly payments, you can expect to pay between $1,000 and $1,500.
Making an online home insurance quote comparison is a great way to get an idea of the payables on the coverage. Comparing your options also helps you check with the insurers’ offers. The best way to make a decision is by checking the average premiums, the number of coverages, and their financial strength.