Life and homeowners insurance rates are always changing. As a homeowner you must be ready to protect your most valuable asset – your home – should disaster strike. Your home very closely matches with Darwin’s theory: it can survive only with adequate protection and the key to its survival is having appropriate homeowners insurance and rental insurance policy.
One of the advantages of free market is the wide range of quotes on homeowners insurance available to you where you can pick and choose the right coverage for your home sweet home.
A typical homeowners insurance policy not just protects the structure but your belongings, liabilities and other damages as well. Finding the cheapest homeowners insurance through quotes on homeowners insurance in Florida doesn’t have to be a Herculean task. Many insurance companies at this point will be willing to offer the best rate with plenty of features and add-ins. Insurance rate, in fact, can become expensive if you are not working with the right agent. There are number of ways where you can obtain adequate coverage for your home and keep the premium as low as possible, especially when this is your first hunt for such a rate.
Choosing the Best and Most Affordable Insurance for You
But before anything, let us look at which homeowners insurance or rental insurance policy from the quotes on homeowners insurance is right for your situation. To begin with, there are several of them, each covering specific list of items or as they fancily call it “perils”. These policies are numbered 1,2 3 and so on based on the extent of coverage of these perils. For instance, HO-1 in the home insurance quotes is the most basic type that insurance companies are reluctant to mention or sell because they cost less and rarely beneficial for both the insurer and the insuree.
HO-2 in the home insurance quotes and HO-3 policies in the home insurance quotes are standard forms that will protect your home and its contents as well as some liabilities, including:
Damage due to fire, smoke lightening, hail, volcano, windstorm and other natural disasters
Damage due to explosion
And Damage caused by riot, aircraft, falling objects, vehicles
Vandalism and theft
Overflow or accidental discharge of water from heating, air conditioning, plumbing, household appliances and sprinkler system
Freezing of heating, air conditioning, fire-protective system as well as plumbing and household appliances
You will notice that most HO-2 policies obtained from quotes on homeowners insurance do not spell what is covered and what is left for the homeowner to defend but HO-3 policies do. The quotes on homeowners insurance with HO-3 policies may specify everything that is covered and what is excluded so that the insuree is better prepared in times of claims. Standard exclusions may include, but not limited to, earthquake, flood, pests, and neglect. Certain policies from quotes on homeowners insurance cover personal belongings, such as vehicles, jewelry and antiques. Then there are other types of numbered homeowners insurance policies in the quotes on homeowners insurance that will protect renters, condo owners and owners of mobile or manufactured homes.
With that vision, it is about time to consider the factors that influence a typical homeowners insurance rates; the most obvious being location, materials used, age and condition of the home. Newer homes are less likely to face internal mishaps such as plumbing blockage and wiring issues, hence cheaper to insure. Homes that are build on hill-tops are expensive to cover due to location, distance from amenities and multiple other reasons. And then there are several other strategies that you many want to implement to find the best cheapest homeowners insurance and rental insurance policy that works for your needs and budget in Florida.
Homeowners Insurance Florida – Comparison Shopping
Recommendations from your friends and family are always helpful, but we suggest you research the home insurance quotes before buying a policy. Compare home insurance quotes from different companies and see what is covered and how much each of these elements cost in different home insurance quotes. Any reputable insurance company, such as Citizen s Property Insurance Corporation, Universal Property & Casualty, St. Johns Insurance and Florida Peninsula Insurance Company, would be glad to explain the terms and conditions of what they have to offer.
Finally, make sure you know and understand these home insurance quotes and the value of premium that you will be paying every month. It’s more likely that your home is the most expensive of all your assets, so anything that covers it fully is worth the time, money and effort.
Homeowners Insurance Florida – Weed Out The Rest
The conventional wisdom used to be to insure all that is insurable. Not anymore, due to the expensive nature of today’s insurance policies. This means identifying what is needed to bring the house to a livable condition and covering only those elements. So, insure only for the cost of rebuilding the house in the same location, not for the purchase price at the current market rate.
Similarly, insure only those items that you think is beyond your budget to replace. To get an accurate estimate, take an inventory of all your belongings and let the homeowners insurance or rental insurance cover its replacement cost and not the actual cash value. It may cost you a couple of bucks more but if they are worth replacing, the cost justifies the purchase. Making a list of items to be covered will not only make your life easier now, but it will also make it clearer later when insurer will be a part of the claim process.
Homeowners Insurance Florida – Two Or More Policies
Most insurance companies like to work with customers who have multiple policies with them. Bundling more than one policy has more advantages than drawbacks. For one thing, your overall premium will cost less. For instance, if you have home, auto and life with one insurance company, you will be paying 25% less than if you were to buy them from different insurers. And that is how a well-informed homeowner looking for cheaper alternatives will approach an insurance company. Bundling multiple policies will help them obtain the best rate possible.
The insurance companies know that homeowners need to have the best product or service, they know they need customers and hence offer what is sought. Another advantage in choosing to bundle multiple policies is having a backup coverage. All homeowners face the risk that their home insurance policy will take over their savings. When it comes to filing the claim, the existing policy for home may not cover for certain liabilities. There may be a chance that these liabilities are covered by another policy. It is easier to do business with one insurer when you are claiming multiple things. With your policy’s terms and conditions as a guide, you can successfully file the claims.
Homeowners Insurance Florida – Higher Deductibles
This is the amount that you promise to pay your insurance company before the coverage kicks in. A lot of homeowners think of higher deductible homeowners insurance when it comes to saving money on their monthly bill. It makes total sense if you have enough money saved in the event of a disaster or damage. You can save as much as 25% on your homeowners insurance or rental insurance monthly premium by switching from $250 deductible to $1000 deductible. On a similar note, a deductible of $2500 will save you more than 35% and lower your monthly cost to a significant level. A quick glance at your financial health can help you determine this figure as well.
Homeowners Insurance Florida – Choosing To Upgrade
This is one of the biggest mistakes homeowners make. Just because they have liability coverage in their policy doesn’t mean they will be covered for injuries that may have avoided if they were a little careful. In other words, you will need homeowners insurance with special clause for your neighbor’s kids if they are playing on your backyard trampoline.
And your insurance company may require you to have coverage for certain types of dogs that you have adopted as well as the swimming pool you will install that you think would help cool off during the summer months. Having all these extra features in your property means more money toward your premium bill. So, think again before upgrading your house with a new play structure. Focusing on what you don’t need is remembering that insurance companies don’t cover for all perils. And do not forget to update your policies once these uncovered perils are removed.
Homeowners Insurance Florida – Adding Safety Net
Many insurance companies insist that homeowners add standard safety features to their properties. These include, but not limited to, deadbolts, security cameras, carbon monoxide detectors, smoke detectors, fire extinguishers and strong fence. If your home is prone to tornadoes, they may want you to build a storm shelter as well.
The good news is, you are not only safe by having these features in place, but your homeowners insurance or rental insurance premium will be very low saving you hundreds of dollars a year. As a matter of fact, anyone who has had the misfortune to be in a disaster prone area knows that having safety features can make the difference between losing the home and not being able to rebuilt and experiencing minimum loss as possible.
Homeowners Insurance Florida – A Good Credit Rating
Almost all states, including Florida, check your credit score before issuing a homeowners insurance policy. As a homeowner you may want to know your FICO score. Get a copy of one from one of the authorized credit agencies. This report will clearly give an indication about roughly how much your insurance rate will be. This is the score that will determine your fate of obtaining the lowest rate. In other words, it will decide whether or not you will be eligible for the cheapest rate available in the Florida market.
Cheapest But Best for Your Credit
It is a standard practice and the logic that goes with this practice is as follows: If you are a customer with an excellent credit score, chances of you filing a claim for every scratch on the wall or clog in the sink is less. With bad credit, you are considered a deadbeat or high risk customer.
Remember, insurance companies, just like bankers, want to lend money to people who have good reputation and can pay their bills on time. Based on your credit rating, different insurers will offer different rates for homeowners insurance or rental insurance with varying features. If your credit score is low, you may want to concentrate on raising it. Try using some of the greatest books and resources that have been written to help you raise this score.