Top Tips For Comparing Homeowner's Insurance Quotes

If you're like most people, you probably didn't shop around much for your homeowners insurance quote; with everything else involved in the purchase of a home, you likely took a policy from your current insurance company or a company recommended by your realtor or mortgage broker.  While this is a common - and easy - way to get the required insurance in place to buy a house, it's not the best way to save money on your insurance.  Before your insurance renews this year, take a minute to compare quotes, keeping in mind these important tips to get great coverage for the best price.

Compare the Replacement Cost.  Replacement cost is the amount of money your insurance company has determined your house is worth.  That means how much it would cost to actually re-build your home from the ground up, and it does not include the value of the land.  In most cases, this amount won't match the market value.  While insurance companies may come up with slightly different replacement cost values, any amount that seems much higher or lower than the other quotes could be falsely inflated - or not offer enough coverage.

Check the Deductible.  One of the quickest ways to lower an insurance premium is to raise the deductible.  Insurance companies usually choose a standard deductible to use with their quotes, and it's not the same across the board.  Make sure the quotes you are comparing have the same deductible for an apples to apples rate comparison.

Consider Discounts.  When you are comparing home insurance quotes to your current policy, bear in mind any discounts you're receiving that you might lose if you switch.  If you have a multi-policy discount that is reducing your car insurance rates, you will want to be sure to consider the increase in your car insurance premiums if you move your home to a new company.  It can make that lower rate seem less attractive when you wind up paying more in total.  It's a good idea to get car insurance quotes at the same time to see if you can save more money overall at a new company.

Compare the Additional Coverage.  Every standard homeowner's policy is a little different depending on the company.  Ask what extras the policy includes, and what costs extra to add on.  Ask about things like identity theft coverage, high-value items coverage, and the standard liability coverage level included with each policy.  The more that is included in the quoted premium, the better the rate really is.