How to Evaluate Coverage and Costs on a Homeonwers Quote

A quote for homeowners insurance consists of many factors that can be used to increase or decrease the cost of the policy. Some of these factors include the amount of replacement cost coverage, building materials and utilities as well as discounts being applied to the policy. Homeowners insurance quotes can vary from company to company and it is always beneficial to shop around and compare quotes to find the best value to price.

The replacement cost of a home is a major factor in the price that appears on an insurance quote. Many insurance companies offer variations of replacement cost coverage. Replacement cost coverage is designed to cover the costs to replace property that has been damaged or stolen. It also provides coverage for damage to the dwelling. Some insurance companies offer guaranteed replacement cost coverage built into the premium or increased cost coverage which is an additional charge added to the premium being paid. Charges for replacement costs can vary from insurer to insurer so it is best to compare the coverages and prices being quoted.

The building materials used in the construction of the home and the underlying utilities are another factor that can add to the cost of a policy. Generally, materials that resist wind and are fire resistant will generally reduce the cost of insurance because that chances for damage are greatly reduced. Having new or upgraded utilities such as plumbing, electrical and heating will also reduce the cost of insurance. This is because newer utilities like electrical wiring and plumbing are designed to provide greater protection to the weather and for fire due to an electrical short.

When comparing costs and coverage on an insurance policy always look at the discounts that are being provided. Discounts can be applied in a number of ways and can provide for significant savings on a policy. One of the biggest discounts to compare is a multi-policy discount or having more than one policy with the same insurer. Another discount is the proximity or distance to a fire station or fire hydrant. The closer a residence is to either or these the greater the discount can be on a policy. Age can also be a factor in the cost of the policy and coverage on the policy. Companies can provide discounts for the age of the dwelling as well as the age of the insured.

Insurance quotes and coverage can vary from company to company. The type of coverage provided are generally the same, but the discounts and surcharges that are applied can vary significantly depending on the company and their target market. When possible always try to keep insurance policies with the same insurer. The savings can be significant, but with diligence there can be better deals to be found as well.