Updated 25 Jan 2024 
7 Minute Read
What You Need for a Reliable Home Insurance Quote
Buying a house is an exciting time, but there’s so much to consider after acquiring your home, especially if it’s your first home purchase. After you close on your dream home, it’s time to purchase homeowners insurance to give you peace of mind. Fortunately, shopping around doesn’t have to feel like work – being prepared can make things go smoothly, so here are three questions worth asking before purchasing home insurance.
Home Insurance Quote Information Checklist
To start your search for the best deal on homeowners protection, it’s important to understand each policy, along with the different levels of coverage, to find one that matches your needs at an affordable rate.
Before you apply for a home insurance quote, it’s important to have pertinent information on hand so the agent can calculate an accurate rate. Home value and risk factors are used in these calculations to determine how much will be spent per month or year, depending on what coverage plan you choose.
1) Address
You may think only of the size and style of a home when you’re looking to purchase, but there’s another major factor that influences your monthly or annual mortgage payment: location. If you live in an area with high risks for natural disasters like floods, tornadoes, and hail storms (or even just higher crime rates), then the chances are good that insurance will be more expensive than if it was located near low-risk areas.
2) Your Personal Details
When you speak to a home insurance agent, be sure to have all your ID. The first thing they’ll do is ask for some personal information like:
- Name
- Social security number
- Marital status (or if someone else is living in the home with you)
- Phone number and email
Details such as your age, credit score, and even pets play a factor in your premiums. For example, younger homeowners may pay higher premiums than older adults as they are seen as a higher risk.
In many states, your credit score can be a significant factor in your insurance rate. Typically, the lower you are rated for your credit score, the higher your premium.
3) Your Insurance History
In general, homeowners who file claims on their insurance policies will end up paying more for a new policy, while those without any claim history can get lower rates.
Homeowners with no claims can take advantage of better rates than other property owners because they have proven themselves as low or average risk and are a potential customer base worth investing in.
4) Occupant Information
Married homeowners are traditionally seen as more settled and stable than single, which is why they typically get lower rates for home insurance.
If you have pets, you should disclose this information as well. Some insurance companies even have restricted breeds they won’t cover, such as Rottweilers, or require separate coverages as an add-on.
5) Coverage Details
Most people don’t know about real options when shopping for homeowners’ insurance until after something happens. Learning about the type of coverage you’re needing can help you in the long run.
Many insurance policies offer actual cash value (ACV) or replacement cost value (RCV); they all have different benefits. For example, RCV coverage has a higher payout. It is more expensive than ACVs, but it may be worth the extra money if you plan to live in your home for an extended period because anything damaged will need to be replaced.
However, these rates can still vary depending on whether or not the policy covers specific items like jewelry and how much living outside the home per year would affect premiums due to potential risks such as floods caused by hurricanes.
6) Property & Building Details
Not only is the location of your home a factor in the cost of insurance policies, but the property and building itself also need to be considered.
Size: Insurance rates for your residence are a lot more expensive if you own an especially large house. The size of the home plays into how much money it will cost to insure and maintain, so be sure that the space is worth it before signing on with any company!
Age: Older homes are more expensive to insure because their systems and structure become weathered with age, making them more susceptible to damage. This is especially the case if the home has additional spaces such as porches or garages.
Building Materials: The building materials used to construct your home can affect the cost of your insurance. If it’s made of durable and sturdy material, then you may be able to save on premiums by going with a higher deductible.
Renovations: What are the benefits of installing new materials in your home? One advantage is that you’ll enjoy lower rates on your homeowner’s policy! Installing a metal roof or weather-proof windows makes sense for many homeowners because it can reduce their insurance premiums and increase the value and livability of their home.
Security systems: If you have a security system in your home, break-ins are less likely to occur. Depending on the insurance provider, a lower premium and other discounts may be available for homes with these preventive measures in place.
7) List of Important Personal Belongings
The value of your personal belongings has a significant impact on the cost to insure you. If they exceed policy limits, it may be necessary for you to purchase additional coverage.
What Else to Consider for Home Insurance
With so many choices for homeowners insurance, you may be wondering where to start. One of the best ways is by going directly through providers or getting a quote online. Here are additional considerations you should make when shopping for coverage.
Talk to a Real Person
According to J.D. Power, just 48% of customers say they completely understand their policy. Speaking to a licensed home insurance agent is a huge advantage, especially if this process is new to you. The market is constantly evolving, and it’s the perfect opportunity to clarify any questions about your homeowner’s insurance quote.
Compare Home Insurance Quotes
The best homeowners insurance deals are available online. You can get instant quotes that will be updated with the latest rates each time you visit, as well as discounts for bundling your auto coverage and other policies.
Coverage Haven makes this process even more seamless as we work with multiple providers to tailor your insurance to your needs and budget.
Estimate your Homeowners Insurance Cost
There are several reasons why a person may want to obtain a home insurance quote. If you’re buying or selling your house, you must get an accurate estimate of what it will cost to protect and cover your new property. This will help with your budgeting and give you a clearer sense of additional coverage options you may need.
It also makes sense to estimate your insurance costs if you have changed car insurance providers, as you can save money on premiums in the long run!
Price is Not the Only Factor to Consider
The cheapest is not always the best when it comes to home insurance. Not only does your home hold virtually all of your belongings, but insurance also covers events that may occur on your property as well. Under-insuring your home is not a gamble you should make, especially if you live in an area prone to natural disasters such as flooding, tornados, and earthquakes.
Approximately 85% of homeowners have home insurance policies, according to data from the National Association of Insurance Commissioners (NAIC), 79.09% of which are HO-3 policies.
Consider insurance types such as:
- HO-2: Only covers damage caused by an event listed in the policy.
- HO-3: Protection against perils except for acts named within the policy.
- HO-5: Protects recently built constructions and safeguards against perils except for specific acts named within the policy.
- HO-6: A policy for condos as well as liability and personal property.
- HO-7: The same as HO-3, but for mobile homes.
- HO-8: Policy for older homes. Similar to the HO-2 policy.
Shop Around & Don’t Rush
As it turns out, many people shopping for homeowners insurance fail to take the time and research a company before buying. While this sounds obvious, they often regret their decision after realizing what protections different companies offer. Don’t purchase the first plan you come across. By getting more than one quote, you will discover added options available to you.
Steps to get a Homeowners Insurance Quote
Homeowners insurance is a necessity for any homeowner. There are plenty of ways to get an estimate and many factors that can affect the price, so it’s important to know what you want before you start looking at policies online or directly through providers.
Online Quote
You should always get a home insurance quote online because it’s the most convenient and accurate way to determine how much money you’ll need for your insurance. The best thing about using an instant rate tool is that it usually gives you all the information in one place, so there’s no searching around trying to figure out what each company has on offer.
Speak to an Insurance Agent
Speaking to an insurance agent is an excellent choice when you want to explore your insurance options without limitations. Agents sell policies from a wide range of providers so that they are always armed with knowledge about what’s available for clients like yourself and can guide you through the best selection process possible. With more than one provider, it’s easy to find an ideal policy that suits all of your needs!