If you’re about to buy your first home, you’re also probably about to get your first homeowner insurance policy. In fact, your mortgage broker will probably require you to get one so they know their investment is protected. Just like with every other form of insurance, it’s a smart idea to get some homeowner insurance quotes before you make your choice of insurance carrier.
When you compare home insurance quotes, you’ll notice a difference between the various insurance companies. In order to decide which of the homeowner insurance quotes is most appropriate for you, it’s helpful to have an overview of what basic homeowner insurance quotes coverage includes.
The most common form is called HO-2. This is a broad homeowners policy that covers your house and its contents against sixteen perils including fire, lightning, hail or windstorms, vehicle or aircraft damage, smoke, vandalism, theft, falling objects, electric damage etc. Homeowner insurance quotes can include coverage for more perils, liability coverage, or special coverage for older homes. One of the most important things to understand about homeowner insurance quotes is that they should reflect the costs of replacing your home after damage—not the cash value. This way, if your home is completely destroyed in a fire or natural disaster, the costs of rebuilding are covered.
Another important thing to know is that basic homeowner insurance quotes usually give the cash value coverage of the contents of your home, which might not be the best option in the event that you have to replace any items. Remember to request homeowner insurance quotes that cover the replacement costs of your possessions so you’ll have resources to rebuild your life in the event of damages.