Purchasing Home Insurance

Purchasing home insurance from an insurance carrier is an easy process depending on the method that is being used. A home insurance policy should only be purchased one an insured knows the premium amount, knows where to send the payment and is told of the payment and billing methods available. If the full amount is paid at the time of purchase an additional discount may be applied.

Purchasing a home insurance policy should only be done after studying all of the facts. This is done by reviewing the rate or price quote for the total amount of premium being paid. A rate or price quote does many things including displaying coverages, discounts and applicable charges and credits that apply. A price provided on a quote is generally good from thirty days from the day it was originally created or printed. There are many factors that go into a quote and it is important to study the quote carefully to make sure it is accurate. This includes making sure it includes all available discounts and credits.

It is also important to know where to send the payment for the premium one an insurance policy is purchased. Many times a payment can be sent directly to the insurance company either by check or electronic funds transfer. Other times an insured may send the payment to their insurance agent who then sends it to the company. In the event that there is a secured interest on a home insurance policy such as a bank or mortgage company an insured doesn’t send a payment. Insurance payments are generally included in the mortgage payment and the mortgage company or bank sends the insurance payment when it is due.

When an insurance policy is purchased an insured has many options in which to select how the premium is going to be paid. An insurance payment can be made by check, cash or by using an credit card. This depends on which type of billing method is selected for the policy. Billing methods can be either monthly, quarterly, semi-annual or annual. Usually the initial payment is made first and then all subsequent payments are due based on the billing method selected. Selecting to pay the premium annually means the entire payment is made at once and is not due again until the policy renews.

When an insurance premium is paid in full the insured may also qualify for an additional discount on the policy. Many insurers offer what is called a paid-in-full discount to those who pay their entire premium in full. This is because the insurer does not need to send a bill and process a payment when the premium is due.