Before you consider buying homeowner’s insurance online, find out what homeowner’s insurance generally covers, and figure the amount of coverage you need. Homeowner’s insurance is designed to restore or replace your property and possessions in the case of castastrophic loss. A homeowner’s policy can also protect you from being held personally liable in certain situations.
Figure the amount of coverage you need to replace your home. A homeowner’s insurance policy will either pay you the current market value of your home or the replacement cost value. Armed with your zip code and the square footage of your home, go online and obtain the replacement value of your property. Search the term “replacement value of home calculator.” Some property replacement value website calculators may ask you for more details to provide a more customized replacement cost value. Compare the market value of your home to the replacement cost. Use the higher number for insuring your home. Check out a few different insurance policies to learn how they calculate the replacement value.
Figure the amount of coverage you need for your personal belongings. These can be items that would be expensive for you to buy all over again. Although not covered in a standard policy, you may want to insure things like a digital camera, diamond jewelry, designer clothes and collectible items. Rare and expensive items must be insured under special insurance riders for an additional cost to a standard policy. Your personal property can be insured for either the cash value or the replacement value. You can obtain the cash value by getting each item appraised. To find the replacement value of jewelry, for instance, contact a jeweler. Select the highest value for insuring your belongings. Read various homeowner’s insurance polices for their terms and provisions covering personal items. Read the fine print. Take pictures of your personal items and make a list of what they are and their value to help in case of any claims.
Select the amount of liability coverage you want through your homeowner’s insurance. Liability insurance protects your assets in the event you are personally sued by someone who is injured or has suffered property damage while on your property. The liability coverage can come into play, for instance, if you have a dog that bites or attacks someone. In order to determine how much liability coverage you need, start by calculating your net worth. Begin figuring your net worth by adding up all of your assets (the equity in your home, bank accounts, savings accounts, bonds, IRAs and valuables). Subtract your liabilities or debts (loans, car payment, mortgage payment, credit cards, student loans.). This is your net worth. You should at least obtain enough coverage to match your net worth. However, if a lawsuit is brought against you, you could be charged attorney fees, court costs and unpaid time off from work. Take into consideration that you may actually need much more liability insurance than just your net worth. Homeowner’s insurance companies generally recommend $300,000 of liability coverage. If you need more insurance than that, purchase an umbrella policy which goes into effect when your standard policy limits are exceeded. Add up all the amounts you've figured in Steps 1 to 3. Now you're ready to get some quotes.
Enter the search term “homeowners insurance online quote” into your favorite search engine. Insurance websites give instructions to take you through their quote process systems. The quote system starts by asking for the home’s zip code. Then you will be asked for specific property details (the address of the home, type of dwelling, year built). You will also be required to input information about your current homeowner’s insurance and insurance history. The types of coverages will be displayed, usually in a drop-down box. Choose an adequate amount of insurance to cover yourself, your property and personal items. Read over specific homeowner’s policy options and choose the ones that are right for you. You may receive an instant homeowner’s insurance quote online. Obtain quotes from several companies. Quotes can vary greatly from insurer to insurer. It would be beneficial to get quotes from at least three different providers. Look at not just the pricing, but all the options and policy details of each provider. Many online homeowner’s insurance providers allow you to save your quote to view later.
Choose your preferred online insurer to provide you with your homeowner’s insurance. Call an agent with the insurance company if you have questions not covered on the website. Pay for your policy and print out a page for your records until you receive your full homeowner’s insurance policy package through the mail.
- Set deductibles as high as you can afford. Higher deductibles mean lower premiums, since the homeowner’s insurance company is taking on less risk. To the insurance company, the higher your deductibles, the lower the chance you will make a claim.
- Flood coverage is usually a separate type of homeowner’s insurance. A flood can occur as the result of heavy rains or an unpredictable natural disaster such as a tsunami or a typhoon. Many standard policies do not cover flood damage, and it must be purchased at an extra premium. But the additional cost is worth the added security of knowing that your home is covered in the event of a flood.