A Guide to Home Online Insurance Quotes
Homeowners insurance is designed to protect your greatest investment (your home) from ﬁre, theft, lightning, accidental damage and more. Homeowners insurance can even help protect you from certain liability law suits, but may not cover something as seemingly basic as ﬂooding. This guide will help you sort out the different options included in online insurance quotes.
Structural and Personal Property Coverage
The most obvious reason for purchasing home insurance is to protect the homeowner from the costs of replacing or repairing the structure and contents of a house if it is damaged. Therefore, the ﬁrst step to getting an online insurance quotes is determining the value of the home itself as well as estimating the value of the property inside. Once a shopper has these values, he or she can simply plug the numbers into the web-based forms that are available on many insurance websites to get a basic idea of their home insurance premium.
Personal Liability Protection and Medical Pay
Another important reason to purchase homeowners insurance is the liability protection and medical pay that can protect individuals from lawsuits and expensive medical bills. These beneﬁts extend to persons injured on the policy holder’s property as well as damage done to others’ property, including accidents caused by children and pets. Companies that provide online quotes will ask how much liability insurance coverage is desired and add this into the cost of the premium. It is possible to ﬁnd online quotes that will cover as little as $100,000 in liability coverage and as much as $1 million.
Mortgage Protection and Flood Insurance
These two options can be added on to most home insurance policies. Mortgage insurance is designed to pay mortgages in case of the injury or death of the policy holder. For most people, this is an unnecessary add on, but for people whose work puts them at high risk for injury and cannot afford disability insurance, this is may be a viable option. When it comes to ﬂood insurance, for homes that are at elevated risk ﬂooding or for any homeowner who can’t afford to repair ﬂood damage without insurance, it is a good idea to add ﬂood coverage. When getting online insurance quotes, shoppers should keep in mind that ﬂooding is not covered under standard home insurance policies.
Understanding Cash Value versus Replacement Value
Some online insurance quotes are based on “actual cash value” of personal property as opposed to “replacement value.” Actual cash value will pay to replace your damaged or stolen personal belongings with items that are in similar physical condition-items with the same cash value as the ones that were lost. On the other hand, replacement value will fully cover the cost of purchasing new items. When purchasing insurance online, quotes will most often reﬂect the actual cash value option since it leads to smaller premiums. Individuals that desire replacement value policies must be sureto locate that option.
Understanding these terms can help shoppers make wise decisions based on the online insurance quotes they receive. Shopping online can be convenient, but it can also be confusing when you don’t understand the terms involved. By paying attention to detail, all shoppers can great deals that meet their insurance needs.