There’s no denying that homeowners insurance is an investment, which is why gathering homeowners insurance quotes and comparing and contrasting them is essential.
Homeowners insurance is a big investment, but it’s a worthwhile one that is crucial in protecting one of your biggest (if not the biggest) assets. Doing some research and legwork before investing in a policy will help you find the best coverage for your needs at a price that makes sense.
To compare house insurance policies, you’ll want to determine your policy coverage needs and get multiple quotes on homeowners insurance rates from various providers for the same types and amounts of home coverage.
But to do that, you need to know where to begin. Today, we outline the best ways to compare homeowners insurance quotes like a pro.
Keep scrolling below to learn more.
Compare house insurance policies like a pro: 6 steps you need to follow
STEP 1 — Understand standard and add-on coverage
A standard home insurance policy typically includes four types of coverage:
- Structural or dwelling coverage — This pays to repair or replace your property if it is destroyed or damaged by a covered incident, such as smoke or fire damage.
- Personal property coverage — This pays to replace personal stolen, damaged, or destroyed belongings in a covered event.
- Liability coverage — This pays medical and legal costs if a visitor or guest is harmed on your property.
- Alternative living expenses (ALE) — This helps cover the cost for you to live somewhere else during property repairs or rebuilding following your insurance claim.
Depending on your specific needs, you may want to consider adding on coverage:
- Extra structure coverage — Dwelling coverage is generally based on the amount of your mortgage, but that may not be enough to rebuild your house. The following additional coverage may help:
- Inflation coverage increases your coverage each year based on current inflation.
- Extended replacement coverage raises coverage by 20% or more to help cover rising costs.
- Guaranteed replacement coverage pays for rebuilding the property precisely as it was, even if doing that is more than your coverage limit.
- Ordinance coverage pays to rebuild your house, staying in compliance with the latest building codes, which likely changed since the year your home was built.
- Inflation coverage increases your coverage each year based on current inflation.
- Additional liability coverage — In the event of a lawsuit, you will want as much liability protection as possible for all of your assets, including retirement, home, and bank accounts. Homeowners may want to increase their liability coverage to equal their net worth or purchase umbrella insurance, which pays out when medical and legal costs exceed your auto or home insurance limits.
- Extra personal property insurance — A standard personal property insurance policy is between 55 and 70% of the amount of your dwelling or structural coverage. You may want to conduct a home inventory, estimating the cost of each belonging to determine whether that’s enough coverage.
However, standard policies pay out the current value of an item, not how much it costs to replace it. If you want to replace your 10-year-old television with a new one, you’ll need to invest in replacement value coverage instead.
Coverage for particular possessions, like computers or jewelry, is typically limited to a few thousand dollars. If your items are worth more, you’ll want a rider to cover them.
- Additional ALE coverage — Most home insurance policies cap ALE coverage based on a time period or percentage of your structural coverage. This may not be enough to cover your needs if materials or labor are in short supply and repairs are delayed, making reconstruction take more time than anticipated. Investing in more ALE coverage can protect against this risk.
- Water damage insurance — Generally, standard home insurance policies do not cover damage to your property from sump pump, sewer, septic tank, or drain backups. However, it is typically available for an affordable rate as a stand-alone policy or rider.
- Natural disaster insurance — Stand homeowners insurance policies do not cover floods, sinkholes, or earthquakes. If you live where these natural disasters occur, consider investing in additional coverage from a stand-alone or add-on policy.
STEP 2 — Gather necessary information for a quote
When asking for homeowners insurance quotes, you’ll need to provide the following info:
- The kind and amount of insurance you want
- Your full legal name and birthdate
- Your address
- Coverage start date
- The number of people living in your home
- The year the house was built
- The property’s total square footage
- The roof’s age and materials used to construct it
- Information on any outbuildings, such as gazebos, carports, or garages
- Any home improvements made, such as upgraded electrical or plumbing systems.
- Any installed safety devices, such as a security system
The insurance company might also ask:
- Whether there’s a dog on the premises
- Whether you’ve ever had to file a homeowners insurance claim
- Whether you run a business from your property
STEP 3 — Gather quotes from different providers
Request quotes for the same type of policy and the same amount of coverage from each company to ensure you are getting a fair comparison of homeowners insurance policies.
You can get quotes from one provider at a time through the insurance carriers’ websites or by calling them. For a quicker, more effective option, contact a trusted insurance broker to gather multiple quotes from various insurance companies.
STEP 4 — Look at homeowners insurance rates, deductibles, and coverage comparisons
You can expect standard coverage limits to vary slightly from one carrier to the next, so doing your due diligence is key. Find out exactly what each provider’s limits are and how much it would cost to receive the amount of coverage you need.
To ensure you’re getting the best policy for your situation, it’s also important to compare standard deductibles and options to adjust them. A typical home insurance deductible might be a specific dollar amount (usually starting around $500), or it may be a percentage of the claim payout.
Generally speaking, raising your deductible lowers your premiums. Just make sure you are able to afford to pay a larger deductible if you need to file a claim. Add-on insurance policies, like earthquake and flood coverage, will have their own deductibles. If you plan to purchase an add-on policy, take that deductible into account, too.
STEP 5 — Check for any available discounts
A professional will always look for available discounts on homeowners insurance rates offered by various insurance companies. You might get a discount on your homeowners insurance policy for the following:
- Having safety features or security systems installed such as burglar alarms or smoke detectors.
- Replacing an outdated roof or old electrical, plumbing, or furnace systems that reduces risk
- Being retired
- Being a veteran
- Purchasing insurance online
- Auto-paying premiums or paying annually (versus monthly payments)
- Belonging to an alumni group, association, or other organization
- “Bundling” policies (buying two or more types of insurance (like auto and home) from one provider
STEP 6 — Don’t forget about consumer satisfaction and trustworthiness
Cost should not be your only consideration when buying homeowners insurance. Your insurer needs to also be helpful and responsive when you have a claim. If you want to compare house insurance policies like a pro, it’s crucial to consider this.
To evaluate a provider’s customer service, check out their online reviews from customers on third-party sites and look into customer complaints on the National Association of Insurance Commissioners website. Moreover, Consumer Reports reviews of home insurance providers are accessible for a small fee.
Lastly, ensure that the insurance company is financially sound so you can rest assured they will pay out on any claims. Companies like S&P, Moody’s, and A.M. Best rate insurance providers’ financial stability; you will need an account to access some of this information, but registration is free. Each review company has varying rating systems, so check out each to get a well-rounded feel for the insurance provider’s reliability.
Let Bear River Mutual Insurance compare homeowners insurance quotes for you
It’s not easy comparing homeowners insurance quotes like a pro, so our professionals at Bear River Mutual Insurance want to do the work for you.
Shopping for a home insurance policy is overwhelming for many homeowners, and understanding what you’re looking for can feel stressful. But the experts at Bear River, you have help finding the right policy for you all along the way. If you need help finding the best, affordable insurance options for you and your loved ones, it’s best to let the trusted pros help.
Insurance is an essential part of homeownership. Without it, your home, belongings, loved ones, and everything else you’ve worked for are at risk. That’s why our skilled and knowledgeable professionals are here to help you find the best policy for you.
Our team specializes in other types of insurance policies, including auto, business, renters, earthquake, and more. Regardless of what stage of life you’re currently in, having safety nets in place could save you from financial ruin, and various insurance policies are a great place to start.
Bear River Mutual is a skilled insurance company with decades of experience. You can find our team in three convenient Northern Utah locations that serve you better: Salt Lake City, Provo, and Orem.
Contact Bear River Mutual Insurance today to start comparing policies.
