Home Insurance

If you own a home, you probably need to consider purchasing some form of home insurance. Also known as "homeowner's insurance," this type of insurance policy protects you against damage and/or liability that may occur in or because of your home.

For example, let's say that a heavy thunderstorm with hail and high winds considerably damages your roof. If you don't have insurance for your home, you must pay for the full cost of the repairs. With insurance, however, your policy will likely cover a percentage of the cost, protecting you against paying the full amount. This protection becomes even more important with larger-scale damage or loss such as theft, fire, explosions, or vandalism.

There are many different forms of insurance coverage for your house, including basic, broad, and special policies. The main difference in each form is which perils are covered. A peril is any type of danger that can result in damage to your home.

Different companies vary widely in their rates, qualification factors, deductibles, and amount of coverage. Some policies may only cover the structural elements of the main house itself, while other policies may also cover other structures (like garages and sheds), personal property in the home, and living expenses should you be displaced for some reason. You may also decide to purchase home liability insurance, to protect against lawsuits should somebody suffer injury and/or distress because of your home.

Before purchasing insurance, you should take stock of what you want and need in your policy and discuss these things with other residents (such as your spouse and/or roommate). You should then make an appointment to discuss these questions in detail with agents at several insurance companies in order to find the best rate and policy for your individual needs.

Insurance Rates

If you need to purchase insurance coverage for your home, you should make sure you get the best rate available. Insurance rates vary widely by state, company, and policy.

One of the biggest factors affecting insurance rates is the market.Rates often change on a minute-by-minute basis because they are affected by the real estate market, bond market, and global financial data. Insurance agents may ask you to "lock in your rate" because a good rate may change before the week is over.

Your background and home age also play a role in home insurance rates. If you can't pass a criminal background check and own an older, dilapidated home, then you may have very high insurance rates. Your geography can also affect the rate. If you live in an area prone to forest fires or civil unrest, you may pay higher rates than people who live in comparatively safer areas.

Sometimes insurance companies temporarily lower their rates to reel in new customers; at other times, they may offer very low deductibles or other incentives but actually have high rates. As a homeowner, you should get quotes from multiple companies and try to find the best rate and coverage for your needs, at a monthly premium that your budget can afford.

Home Insurance Quotes

When you are looking for an insurance company, it's important to first get several quotes before making any decisions. An insurance quote is an estimate of how much coverage the company will provide for you. This estimate usually includes the rate, deductible, limits, exclusions, and so forth.

All companies differ in what they offer. Your insurance agent should be very clear and detailed about both coverage and exclusions. When asking for a quote, also ask about recoverable depreciation and policy "riders," if you need either of these items.

When giving you a quote, the home insurance agent will ask questions about your home and its related assets (such as structures that attach to your home and contents of the home). The agent will also want to know about your risk factors, current insurance policies, occupation, criminal history, and insurance claim history. Depending on the company, it may take a few days before you know the results from the quote.

Keep in mind that the home insurance quote doesn't mean anything by itself - you will need to sign the paperwork and set up an official insurance policy before the numbers are in place.