How To Estimate Your Home Owners Insurance Premium

//How To Estimate Your Home Owners Insurance Premium

Your homeowner’s insurance is a way to protect your home from a variety of hazards. Should there be a disaster, a robbery, a fire or other damages to your home the insurance will help you to replace or repair damages to your home.

There are many ways to estimate your homeowner’s insurance.

The first thing that you’ll want to do is get a basic quote for basic coverages. After you’ve done this, you’ll have a baseline to look at and compare.

Always get this from at least 3 different companies before you start contemplating other coverages. Once you have 3 baseline quotes you’ll want to find out what different types of coverages you may want to add on to your basic policy.

There are additional riders that you can get that will cover jewelry and other large ticket items that you may own and wish to have additional coverages on. If you have an alarm system, you may also be able to get a discount. Know What Is The Average Cost Of Homeowners Insurance Nationwide?

There are other types of discounts that may also be available depending on your protection such as alarm systems, gated communities, shutters, deadbolts, for all of the entries, smoke detectors, carbon monoxide detectors and other security measures that you may have in place to help protect your home and your family.

Don’t forget other discounts that you may be able to have applied to your premium. If you combine your car insurance with your homeowner’s insurance you may also be able to get a multi-policy discount.

There are also discounts that are available if you work for certain companies or if you bank at certain banking industries. Check every potential discount and factor these in as well when you’re getting price quotes.

Keep in mind

that the average insurance policy is divided by the value of the home multiplied by $1000 and then the $1000 is multiplied by $3.50. This should give you a starting point. If you live in a high crime area your insurance may be higher.

Other discounts are paying the entire year upfront in lieu of making payments each month or each quarter on your insurance. This can save you a few hundred dollars to as much as $1000 depending on which state you reside in.

As a general rule of thumb you want to cover the cost of being able to rebuild should something catastrophic happen to your home, and the cost of replacing your belongings should something catastrophic happens.

Keep in mind that you’ll need to know these values when you get your homeowner’s insurance policy so that you have plenty of coverage should something happen. Not all policies are created equal so be sure to read the fine print and understand what is and isn’t covered.

Example, if you’re living in an earthquake-prone area you’ll likely have to get an endorsement or rider for additional earthquake coverage should there be an earthquake that damages your home or your belongings. Keep this in mind when looking for your home so that you’re covered for any potential hazard. My Meridian Insurnace .