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Comparing Home Owners Insurance ��� Apples To Apples

By Compuquotes Team on March 27th, 2008

Homeowners Insurance

Home owners insurance is quite important. Purchasing a home is one of the biggest financial decisions and investments you will make in your life so it's only normal to expect that you should want to protect your investment as much as possible. Not only does home owners insurance cover your home (the structural building), it's also covers the items that are in your home as well as injuries that could happen on your property to other people and their property.

When you purchase a home, if you have a mortgage, your mortgage company will require proof of insurance before they forward the money to you to pay for your home. When you are looking for home owners insurance, it's important that you get a few quotes to compare, so that you can be sure you are getting the best home owners insurance for you and the best prices. However, when you are comparing home owners insurance, it's best to ensure that you are making apples to apples comparison. Let's look at a few key points to watch when comparing home owners insurance policies.

Premiums - the premium is the payment that you will pay to have home owners insurance. This is how much your insurance costs. The cost is derived from a number of different factors which are stated below. This is where the comparison comes in. While you can compare the premiums, you have to be sure that the premiums are based on the same criteria from each company's quote you are comparing.

Deductible - The deductible can range anywhere from $100 to $2,000, and is the amount that you will pay if you have a claim on your insurance. For instance, if you have a $500 deductible and your claim on your home owners insurance policy is $5,000, the insurance company will pay $4,500. This is one of the main comparisons that you should make, ensuring that the deductibles are similar. A lesser deductible will cost more in premium than a higher one, but the deductible will be what you pay out of pocket should you have a claim.

Liability - The liability coverage you have will also impact your rates. The higher the rate of liability coverage you have, the higher your premiums will be. Liability covers accidents that happen on your property to other people and their property.

Coverage - Because there is such a broad range of home owners insurance coverage, you have to ensure that you are getting and comparing equal coverage on the policies. Be sure to check what is covered and what isn't covered on each policy. One thing in either category can make a huge impact on your insurance premiums, so be sure that the policy that is considerably cheaper isn't offering much less coverage for your home and belongings.

Overall, you need to compare at least three separate quotes for your home owners insurance to be sure that you are getting the right insurance at the best price. Not all the quotes will be the same, there are bound to be some differences. In order to compare properly, be sure to ask the insurance agent about the coverage you have and how it impacts the final premiums on the policy.

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