A Guide to Home Online Insurance Quotes

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.

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