Tips and tricks to enjoy cheap home insurance quotes:

A few decades ago, who would have thought that buying homeowners insurance could be so easy? Gone are the days when one had to spend hours together wandering around different insurance companies, calling them over and over again just to compare some quotes from two or more of them. Buying insurance online has made it very convenient for buyers to sit in the comfort of their homes and compare quotes from multiple companies to find cheap home insurance. One can easily get away from all the hassles and get hundreds of quotes from both local and national insurance companies just by giving a few details.

That said, some people may not like giving out information online to search for cheap home insurance, because some tools also ask for personal credentials. But one need not worry about this anymore, because online tools these days just ask for the buyer’s zip code and that’s it, a full list of quotes from well-known insurance companies from more than 50 states will appear on the screen. This online shopping method to find cheap home insurance quotes is easy, fast and above all free.

Getting the best and cheapest home insurance is something every online shopper is looking for. But in the search for cheaper home insurance quotes, one should not miss out on the real benefit of having homeowners insurance. Full coverage home insurance is protection for the home and the property within it. Therefore, it is not worth comparing insurance quotes based simply on their cheap rates. One must be smart enough to identify affordable quotes that provide the full benefits of having home insurance instead of just opting for some cheap homeowners insurance quotes that are not really worth it.

But one need not think that in order to avail full coverage home insurance, one will have to pay too many premiums. It’s definitely possible to enjoy low-cost home insurance while still getting a decent coverage plan. To choose cheap homeowners insurance quotes, you must first learn about the different types of coverage plans available and then decide which one best suits your needs.

What does a homeowner’s insurance policy cover?

According to the Insurance Information Institute (III), home insurance is divided into different categories, which are denoted HO-1, HO-2, HO-3, HO-4, and so on up to HO- 8. Of all these policies, the first type, ie HO-1, is no longer available as it provides a very basic coverage scheme. The other policies are discussed below:

HO-2 and HO-3: These two policies are the most frequent. The HO-2 policy is also known as a ‘broad form policy’ and HO-3 as a ‘special form policy’. People who have this type of coverage can claim money in any of the following 16 situations:

1. Damage caused by artificially generated current shocks.

2. Unexpected damage caused by aircraft

3. Home-damaging vehicle rampages

4. Damage from falling objects

5. Damage to the home from heavy snow, ice, or the weight of sleet

6. Lightning bolts or bursts of fire

7. Volcano Damage

8. Windstorm damage

9. Unpredictable explosions

10. Damage caused by excessive smoke

11. Malicious Mischief

12. Loss of belongings due to theft/robbery

13. Damage to home or other possessions due to riots or rallies

14. Accidental damage such as cracked or puffy appearance of appliances such as air conditioners, water heaters, and fire ranges.

15. Damage caused to appliances by extreme cold weather causing them to freeze.

16. Damage due to steam or water leaks from water heaters, air conditioners, fire protectors or other appliances.

While both HO-2 and HO-3 provide coverage for damage caused by the above 16 issues, there is a small difference that makes one more advantageous than the other. The HO-2 policy does not provide coverage for damages other than the list above. Whereas the HO-3 policy not only covers the damages mentioned above, but it will also provide coverage for any other type of damage except some natural disasters like earthquakes, floods and other serious issues like nuclear disasters, wars and plagues.

HO-5 – This policy is similar to the HO-3, but with an extension that also provides coverage for one’s possessions in the home.

Special Policies:

HO-4: This policy is special in that it provides coverage for renters.

HO-6: Condominium owners coverage can be taken advantage of by opting for this policy.

HO-7: If one is looking for cheap mobile home insurance, then the HO-7 policy is the right choice.

HO-8: If the house you live in is an older construction, choosing the HO-8 policy will help you get cheap home insurance.

What damages are not covered?

The following are damages that are not covered by any type of home insurance and require separate policies for protection:

â— Earthquakes

â— landslides

â—Sinkholes

â— Floods

â— Sewage damage

â— Damages due to negligence

â— Pest damage

How to calculate home insurance?

Another important element in finding affordable homeowners insurance is knowing how much insurance you really need. This estimate will help the homeowner get an idea of ​​the cost of damage or loss of possession; he/she can face in case of any calamity and then properly judge the amount of home insurance that she should avail. These are the basic steps with which you can estimate home insurance:

â— The first step in calculating one’s homeowners insurance is estimating the total cost of rebuilding the home after serious damage. This calculation must be done considering all the costs at the rates that the house has been built.

• Second, you must estimate the total cost of all possessions that one would think would be damaged in the event of any disaster. Experts suggest that the cost of possessions or property should generally amount to 50-75% of the cost of rebuilding the house. For example, if one estimates the cost of reconstruction to be $250,000, then the cost of the possessions should be estimated to be $125,000. Also, expensive jewelry or artifacts will require additional coverage.

â— The next step is to calculate liability coverage, that is, the amount one would be obligated to pay if someone is injured on the owner’s property. This amount could range from $100,000 to $500,000.

â— The final step is to estimate the additional charges one might face. This includes damage from natural disasters that are not covered by home insurance policies.

Therefore, careful examination and estimation of all the points discussed above can help you get the best and cheapest home insurance possible, while enjoying maximum benefits.