House Insurance Online Guide: 5 Mistakes You MUST Avoid When Buying Home Insurance

Home insurance is something that most people require. While it is very easy to search for house insurance online, it’s not as easy to actually select a policy. There are plenty of mistakes that people make when selecting coverage. Just one mistake can cost you dearly.

Since it’s probably one of – if not THE – most valuable asset you own, it’s essential that you buy the correct type of insurance for your house.

Here are some huge mistakes you’ll want to avoid when purchasing house insurance online:

Mistake #1: Underinsuring your home

Many people go with the lowest price thinking they will save money every month. They buy only enough insurance to cover the mortgage, or only insure the house for its real estate value, in the gamble that the house won’t burn to the ground or get flooded out.

But that shouldn’t be a gamble you take. What you should do is buy enough coverage so that you will easily be able to rebuild the home. Building a house usually costs more than what it is worth – especially considering the increase in construction prices.

Mistake #2: Not buying contents insurance

Don’t forget about the actual contents INSIDE the home when shopping around for house insurance. Make sure the policy includes your personal belongings. What are you going to do if your favorite, expensive piece of jewelry is stolen? Or all of the furniture, floors, and appliances on the first floor and basement are destroyed in a flood?

Mistake #3: Overestimating your amount of coverage

Don’t just assume that because the monthly payment is high that it covers everything. You must know all of the details of the policy. You could end up filing a claim for nothing. Before making any agreements with an insurance company, make sure you understand what is covered, what is not covered, when you will be allowed to make a claim, and for how much.

Mistake #4: Not setting your deductible correctly

Another common mistake many people make when buying house insurance online is setting their deductible either too low or too high. With too high of a deductible, you could end up with large premium payments. With it too low, you will wind up paying more out of the pocket when something goes wrong.

Mistake #5: Ignoring certain types of weather coverage

Whether you live at a high elevation and don’t think you’ll need flood coverage, or live outside of an area prone to earthquakes and don’t think you’ll need earthquake coverage, you are mistaken. Anything can cause a flood, including a plumbing disaster. Even if it’s not your entire property, you’ll still have some damages to worry about. As for an earthquake, there are states other than California, HI, and Alaska to worry about. There are Faults in other parts of North America as well.

Keep these factors in mind when searching for house insurance online. The best place to start is with Lemonade. It offers a variety of affordable policies for homeowners and renters, and even covers contents. If you’re lucky, you might even be able to find Lemoande sales and coupon offers.

House Insurance Comparison: Overview of Factors That Affect Rates & How You Can Choose a Policy

As with any type of insurance, you are probably interested in getting the best possible deal on home insurance. Thankfully, there are tools that make it possible to not only search for policies, but to do house insurance comparison with multiple quotes to find the best one for you.

For some homeowners, price matters more than anything. This should not be the case, though, since overall value is more important than cheap rates. Consider both the premiums and deductibles. Think about the rebuilding costs of your home. How much will it cost to literally replace everything is your home and property is utterly destroyed? The current value of your home and the rebuilding price will not be the same. Try to estimate how much you will be able to afford to pay in deductibles in the worst case scenario and keep that in mind when doing house insurance comparison.

Here are some of the factors that affect the insurance quotes you will get:

• Home’s type of construction and age

• Location

• Credit score

• Deductible

• Certain risk factors (swimming pool, trampoline, aggressive dog breeds, etc… )

• Claims history

• Roofing material

• The yard / property / landscape

Older homes have a higher chance of something going wrong regarding the electric wiring, plumbing, HVAC systems, ceiling, and construction in general.

House Insurance Comparison of Coverage Types

There are certain things that general home insurance policies don’t cover. Make sure you know exactly what is covered and what isn’t before you make your choice. Sometimes it is the matter of gaps in the coverage, where the policy owner thought they were protected but either had incorrect or insufficient coverage. Such issues can be avoided by carefully reading over the terms of each quote you are provided with.

Flood insurance, for instance, isn’t always covered in basic policies. If you live in an older home and have concerns about plumbing, or live near a body of water, this is something you will definitely want to think about. All it takes is a few inches of water to utterly destroy your flooring and some of your furniture. Even a small stream can become a raging river if there is enough rain.

Discounts are sometimes available, especially if you install safety and security equipment.

Where can you get started with house insurance comparison? All you have to do is look into the unique insurance platform set up by Lemonade. It even has a neat AI bot that will help craft the perfect insurance for you. Get affordable, reasonable rates – especially if you use Lemonade House Insurance discounts.

Tips to Find Home Insurance at an Affordable Price

Buying Home insurance can always be termed as a good decision since it gives you appropriate financial cover in the event of theft, damage, robbery, earthquake, storm, or more. However, many people do not think of it as a necessity and often avoid purchasing it so as to save their money.

Keeping in mind the benefits associated with home insurance, the price cannot be considered as the best comparison point. After all, it just doesn’t cover for your home but also for your belongings and gets you monetary aid even in the case when you’re liable for third party injury or property damage.

Though there are numerous factors that determine your policy rates, the most obvious ones include the location of your property, its age and construction type. Newer homes in areas are less prone to damage, natural disasters and crime, and are also cheaper to insure. This definitely is something that you can’t control, but there are certain other ways that can make you eligible to get cheap home insurance. Read on:

1. Shop Around: Like everything else, you need to shop around to find the cheap home insurance. Online websites and tools can help you a lot in finding the best policy. You can even compare two and more policies online to pick the most suitable one for you. Never assume that a certain insurance firm offers cheap home insurance that clicked for someone in your friends and family, for your needs and situation can be entirely different from theirs, and so the same policy may not be the best option for you.

2. Bundle your policy: Rather than buying a home insurance policy from a separate provider, consider bundling it with your existing insurance provider – for instance, home, car, and life – with the same company. This way you’ll get a discount for having multiple policies with the same company.

3. Don’t over insure: When it comes to buying a home insurance policy – homeowners try to get cover for anything and everything for obtaining optimum protection. However, it is advised to get coverage only for what you actually need. Also, try to get insured for how much it would cost to rebuild your home, not re-buy it. This is an important factor because market value considers the location of your home and value of your land. Your homeowners’ policy would not pay for any damage caused to your land.

4. Consider a higher deductible: You can opt to pay a higher deductible in order to pay off the entire insurance premium at the earliest. This will not only help you get better cover at the same price but will also let you get better rebates when filing your taxes.

5. Add safety features: Integrating safety features such as deadbolts, smoke detectors, fire extinguishers, etc. may get you good discounts on premium payment. If your home is located in a disaster-prone area, check on the special modifications you can make to further reduce your premium.

6. Check Your Credit Score: Poor credit scores not only affect your ability to get a loan but can also lay an impact on your insurance premium. Let’s say, if your credit score is low, you may have to pay a high premium value. Work towards bettering this score by making your payments on time and maintaining a good banking transaction record. This will in the course of time improve your credit score, which will lead to you needing to pay a lower premium in future.

All in all, opportunities to find the cheap home insurance are all around you. You must, for your part, take time out to find out the most suitable policy as per your need, which will enable you to save considerably more in future.