Understanding homeowners insurance quotes is essential because prices can vary widely. You can still get the protection you need while saving money by shopping around to find the best deal on your insurance policy.
The best place to start is with the average rate of different homeowners insurance companies in your area, which you can find by checking your state's insurance department website. This will give you a rough idea of the cost of home insurance in your region, but rates are likely to vary greatly from one company to the next, as each insurer weighs rating factors differently.
Your deductible
The deductible for your home insurance is just as important as the deductibles you choose for health and auto insurance. This determines how much money you'll have to pay in case of a claim or problem such as broken pipes or windows. A high deductible can decrease your premium.
Your zip code
Your home's ZIP code will directly impact your insurance quote. If you live in a neighborhood that is more prone than others to burglary, your rates will be higher. As well, those areas more susceptible to natural disasters such as earthquakes and hurricanes will be more costly.
Local fire protection
You could qualify for a lower rate of insurance if there is a nearby fire station. Homes with safety features are also eligible for lower insurance costs.
Home improvement activities
Additions or remodeling can increase the value of your home, making it less susceptible to damage during a catastrophe. This could save you on your insurance. You can add a new bedroom or a kitchen to your home.
The type of home you own and its age can also impact your rates. For instance, older homes have a higher risk of fire or flood damage.
You will also be able to see a difference in your quote if you are a frequent claimant. If you've had a number of small losses over the years, your insurance company will be more likely to give you a discount than if you haven't filed any claims in the past.
You're policy fine print
There will be differences in the deductibles offered by each insurance company, along with their limits and categories of coverage. It is because all companies want to maximize profits by offering packages of coverage that appeal to as many customers as possible.
This fine print can be a lot to read, but it is worth the effort because it helps you understand what your policy covers and what it doesn't cover. It will help you determine if you want to include more specialized protection and endorsements on your policy in order for it to be better protected against certain perils.
Your agent can help you with this. The agent will explain all of the available discounts to you, as well.