Homeowners insurance is a type of insurance policy that insures the home and its contents, and usually also contain a liability insurance that covers accidents that occurs at home. Homeowners insurance will commonly also include other forms of coverage, such as coverage regarding personal possessions of the homeowner even when those possessions are not physically inside the home. If you borrow money using your home as collateral, the creditors will most likely require you to purchase a broad insurance policy for your home to protect their investment.
It is always recommendable to ask several insurance companies for home insurance quotes before you select one company since home insurance quotes varies significantly even when the policies offer basically the same coverage. Your home insurance quote will also be affected by a number of different factors. How much your house is worth and how much it would cost to rebuild it is naturally one of the most important factors when home insurance quotes are calculated. The value of items insured will also have an impact on the cost. It is common for insurance policies to exclude damages caused by certain factors, such as floods, earthquakes, wars, strikes and other types of force majeure. If you live for instance live in a flood-prone region, it is very important that you make sure that your policy covers damage caused by flooding and mudslides.
A house insurance policy is commonly a term contract that is paid monthly or annually. There are also a thing called Perpetual Insurance, where the policy is without an expiry date. The homeowner will deposit money once and the home will then be perpetually covered. If the policy is , the homeowner will get his or her money back. The deposited amount of money is usually equivalent to premiums paid during 10 years of normal house insurance. If you have a standard non-perpetual insurance, you can usually get your insurance costs down by paying your insurance annually instead of once a month. You can avoid the administrative fees that many insurance companies charge you each time they send you a bill. It is also possible to negotiate a lower insurance rate with your insurance company since you pay a whole year in advance instead of just one single month. If you have other items that need insurance, such as cars, it can be a good idea to ask your insurance company for a discount if you insure several items with the same insurance company. Large insurance companies will often offer a wide range of insurances in addition to their home insurances, such as health insurance, car insurance and travel insurance.
Your insurance costs will also be affected by an estimation made by the insurance company regarding your risk of actually needing money from the insurance company. If you install fire sprinklers in you home, you might, for instance, be able to negotiate a lower insurance rate since your house is less likely to burn down. A safety system, such as alarms and high-quality locks on all doors, can lower your risk of burglary and decrease your insurance rate further.
There are six basic forms of homeowners insurance, but these forms can vary between different home insurance companies so it is important that you understand exactly what each policy covers when you compare home insurance quotes.
HO-1 homeowners insurance is a very limited policy since it only covers items that have been specifically outlined in the home insurance policy. A HO-1 home insurance is most common when insuring one or several exceptionally valuable objects in the home, such as costly paintings or a high-priced sculpture. The home insurance quote for HO-1 insurance will naturally depend on the price of the specific object. It can home insurance quote sometimes be lowered by installing certain safety systems.
HO-2 homeowners insurance will cover specific portions of your home. Just like the HO-1 homeowners insurance, this is a comparatively limited form of homeowners insurance and therefore not as common as HO-3 homeowners insurance and HO-4 homeowners insurance. With HO-2 homeowners insurance, the coverage will be limited to named perils and the policy will include a list of the specific incidents covered by the policy.
HO-3 homeowners insurance is the most common type of homeowners insurance and offers a more comprehensive coverage than HO-1 and HO-2 homeowners insurance. HO-3 homeowners insurance has been created in order to provide the homeowner with a broad coverage and keep the house as well as its content insured. HO-3 homeowners insurance will also usually contain liability insurance, often referred to as “all risk insurance”. When you compare home insurance quotes for different HO-3 homeowners insurance policies you should be especially careful when you check the limits of the liability, since these can vary a lot between different homeowners insurance companies.
HO-4 homeowners insurance is also known as Renters Insurance. The HO-4 homeowners insurance is obtained by complex residents as a supplement to the blanket policy written for the complex. The HO-4 homeowners insurance will cover aspects of the home, including furniture and other items, that is not covered by the complex policy. HO-4 homeowners insurance can be purchased with liability insurance. Since the HO-4 homeowners insurance is combined with another insurance policy, the home insurance quotes for HO-4 insurance is usually quite low.
HO-5 homeowners insurance is similar to HO-3 insurance, but provides a larger coverage. Home insurance quotes for HO-5 insurance is therefore typically more expensive than home insurance quotes for HO-3 insurance. HO-5 insurance is purchased by house owners and is not designed to cover condos and apartments.
HO-6 homeowners insurance is also referred to as “Condominium Coverage” and is a supplemental insurance for condo owners. HO-6 will cover the part of the condominium complex that is owned by the individual HO-6 purchaser. HO-6 will also cover items kept in the condo, such as furniture, and contain liability insurance for the condo owner as well as for family members and guests. The home insurance quotes for HO-6 insurance will typically be lower than a normal house insurance since the HO-6 is only designed to cover damages not covered by the blanket policy written for the entire condominium complex.