Understand How to Shop for and Buy House Insurance
If you're new to house insurance, don't be afraid. It's not nearly as complicated as it seems. Yes, there are several things you need to watch out for, but even a basic understanding of house insurance is enough to find a quality plan that fits your needs. Plus, by using NetQuote, you can consider quotes and review policies from a number of different insurance companies that service your area. Taking this time will help you find an insurance company that can trust. Here's what you need to know to shop for and buy house insurance.
House Insurance: Policies and Perils
There are two basic categories of house insurance policies: Named-perils and all-risk policies. Simply put, a named-perils policy covers only those perils named in the policy. All-risk policies cover everything EXCEPT for explicitly stated exclusions. According to the National Association of Insurance Commissioners, all-risk policies are used by 80% of U.S. households, most likely because they're easier to understand and despite the fact they usually cost more.
- HO-1: This most basic form of home insurance is a named perils policy and covers what is known as the 11 basic perils of homeownership: fire/lightning, windstorm/hail, explosions, riot or civil commotion, damage from aircraft, damage from vehicles, smoke damage, vandalism, theft, volcanic eruption, glass or safety-glazing material damage.
Choosing an Insurance Plan: Tips, Choices, and Warnings
- Market Value vs. Replacement Costs: This could be the single most important decision you ever make for your house. Insuring your home for market value is highly unlikely to give the money necessary to rebuild your home if it's destroyed. With so many mortgages "underwater," it might not even be enough
to pay off the bank. For these reasons, many people opt to insure their home for its replacement cost, despite the higher premiums.
Getting House Insurance Quotes
Trying to find house insurance quotes by cold-calling insurance companies or walking into one of their local offices is a daunting task. Trying to make the best decision for your house in a high-pressure sales situation can be difficult for even the informed homeowner and nearly impossible for the uninitiated. And for this type of "insurance," NetQuote has you covered. Just fill out our quick and easy online form, and we'll match you to the insurance companies most likely to fit your insurance needs. Moreover, these companies will know that we've also matched you to their competitors, increasing the level of competition and putting you in the driver's seat.Source: www.netquote.com