The best homeowner insurance is the insurance that best meets your needs. The insurance shopper that takes the time to understand the basic elements of home insurance will have much more confidence and sense of satisfaction when making an insurance purchase. The homeowner policy has been around for a long time and so most of us have a general concept on how the policy works. The more you know about the market value of your home and the approximate cost to rebuild it the better off you will be when shopping for the homeowner policy.
This kind of knowledge is the foundation for determining what kind of policy to purchase. The age of your home has a direct bearing on the market value. The older homes built in the 1900’s have much lower market values today because most of them have depreciated. The market value for an older Victorian style home may be $50,000 but the actual cost to rebuild that home may be $200,000. The older homes that depreciate in market value are insured with actual cash value policies. They are often called market value policies. These policies will reimburse you for the market value of your home when there is a total loss. The market value policy is the best homeowner policy for the older home that has depreciated.
The replacement cost policy is better designed for newer homes or homes under construction. The replacement cost of a home and the market value are almost the same. Replacement cost is applied to the dwelling and most often to the contents of the dwelling. Replacement cost will repair or replace any loss with like kind and quality of materials without depreciation.
The best homeowner insurance for you will be determined by the age and market value of your home. The discounts for older and newer homes are the same. The protective device discount for deadbolt locks, smoke detectors, and fire extinguisher apply to both types of policies. Fire and burglar alarm systems are additional discounts that could be applied to both older and newer homes. Check our recommended insurers for more details.
Shopping online for insurance has sure made things easier for the consumer. The best thing about shopping online is the education that you gain as well as the benefit of rate comparison. The more knowledgeable you are about the product the easier it is to make intelligent comparisons. The home insurance quote is not that difficult if you start your shopping with some basic information. The insurance calculators that you will find online depend on your accuracy when entering the data needed to give you a quote. Homeowner insurance evaluation relies heavily on the square footage calculation of your home. This is your first order of duty when it comes to quote accuracy. You can find the square footage of your home on your original home plans or from a house appraisal. Once you know the square footage then you will need to add all the important upgrades that add significant value to your home. Fireplaces, air conditioning, and finished basements increase the value of your home.
The number of rooms including bathrooms along with outdoor decks and in-ground swimming pools will also add into the overall replacement cost of your home. Replacement cost is a way of evaluating the cost to rebuild your home with like kind and quality of materials. Newer homes generally require a replacement cost policy. The personal property of the dwelling is also covered on a replacement cost basis with this kind of policy. Older homes that have depreciated in value are more suitable for market value policies or policies that settle losses on an actual cash value basis. Actual cash value is the replacement cost value minus depreciation because of age and use. The older homes built in the early 1900’s usually cost much more to rebuild as compared to their market value. The quoting process is very easy. The information that you give is the most important factor. The online insurance calculators will take care of the rest. Check our recommended insurance for more details.
Going without homeowners insurance is not a smart move if you own a home, but you also have to make sure that there are no holes in your homeowners insurance plan.
Be informed. Stay informed about the risk of flooding. Check with your local Red Cross, planning department, zoning department or emergency management office to find out the risk of flooding in your area. The higher the risk, the more important it is to be prepared to take action.
An over-supply of lender-owned homes in the neighborhood may be the one factor that is depressing prices only for the short-term. Their presence will devalue a home, but only until they're sold. So buyers who are in it for the long haul might do well to consider buying in a location such as that - provided that other factors make the home a good choice.
People who buy homes in areas that have full-time fire service attract cheaper premium than folks who stay in places with only a volunteer fire service. Be informed that your premiums will be further influenced by your home's distance from a fire station, firefighting equipment or hydrant. People who reside nearest to firefighters or fire fighting facilities pay more affordable rates everything else being equal.
On a more personal level, buyers need to think about location in terms of their own lives. Saving several thousand dollars on the purchase price of a home is small comfort if they have to drive an additional 60 minutes to work each day.
About two months after purchasing a house and fixing it up, (it was still on the market) the State decided to put my house in a flood zone! The only body of water was a little creek that ran through a golf course half a mile away! What can you do! The Flood Insurance costs $800 a year! Try selling that to a prospective buyer.
The first thing you should do is to check with your state agency. There are some states that have requirements when it comes to buying one. They can offer you cheaper policies if you live in an area that has a bigger chance of flooding.
Many private insurance companies offer flood policies written through the NFIP. I suggest dealing with an agent that is experienced with the program. This type of policy can be purchased on the phone in a few minutes. Ask your agent about any questions you may have about the program. You can get more information at my Texas flood insurance site or you can call my Houston office at 281-537-2700.
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