How to Find Your Best Home Insurance Deal?

29 Sep 2020

Nowadays, home insurance is very readily available, and it is a growing need as well. This is the reason why it has also become so challenging to choose the right one for you. You would like to get the best coverage for the least price. However, price is not the only thing you should look at. So, let us delve deeper and understand the different factors that you need to keep in mind when looking for the best home insurance deals.

  1. Assess your Need

It may be challenging to get a fair idea about the amount of your home insurance as it is based on uncertain future events. So, a basic rule of thumb is to estimate the cost of building a similar house in the same location along with a rough assessment of the loss of belongings. Typically, 50-75 percent of the cost of rebuilding would go towards replacing the personal belongings. You will also need to think about any liabilities on your property. All of this will help you decide the coverage.

  1. Understand the Coverage

The companies offer different types of home insurance covers and you have to choose the one that best matches the requirements of your home. Broadly, there are four types of coverage-

  • Basic Cover- This is the simplest type of coverage against some tragic events like fire, explosion, hail, etc.
  • Broad Cover- In addition to the basic cover, this type of home insurance also provides coverage against some other events like the bursting of pipes, electrical fault, etc. It also covers the personal belongings in the house.
  • Special Cover- This type of coverage protects your home structure as well as related structures like shacks and garages. Almost all mishaps are covered in this type of scheme except some as mentioned in the policy document.
  • Comprehensive Cover- This is also like the special cover with fewer exceptions and thus covering you against most of the accidents whether natural or man-made.

Multiple things are not covered in home insurance schemes, and this is what you need to focus on. Based on the area where you live, you should assess the frequency of natural disasters and take a policy accordingly. For example, Florida is prone to hurricanes so the best home insurance in Florida would be the one that covers hurricanes, tornados and the like.

  1. Know the Insurance Rates

You would like to go to some of the best home insurance companies to get complete protection of your house and belongings. But before that, you should know how much you can spare for the home insurance premium. There are multiple factors that influence the premium amount such as the location of your home, age of the house and its construction, the coverage amount you wish to get, insurance claims history and even your credit score. Other risk factors like a pet or a swimming pool could lead to a higher monthly payment.

Most of these factors are not under your control, but you can still take hold of the things to get the best home insurance rates. The monthly cost may range from a mere $40 to a whopping $160, depending on the state you dwell in and the other factors as mentioned above.

  1. Look for an Easier Claim Process

In case of a mishap, you will need to contact your insurance company, and in such tragic times, a complicated claim process would be the last thing you want. Different insurance companies have different ways of filing claims and handling their customers. You should research about the claim process of the insurance companies that you have contacted. Read online reviews and talk to your friends and colleagues to get a better understanding as to what could come as an obstacle at the time of insurance claim. You would want an insurance company where the claim process is more straightforward and quicker, and the customers are treated fairly.

You can avail home insurance covers directly from the insurance companies, brokers, banks, card companies, and comparison websites. Your mortgage loan provider may also sell a home insurance policy to you. No matter where you take the home insurance from, the most crucial part is to do thorough research and compare different home insurance companies based on pricing, coverage, ratings, and their terms and conditions. Sign up for one that fits your budget and provides the maximum possible coverage.