Getting The Best Homeowner Insurance Quote
Greg Roy
The online shoppers for home insurance have some powerful,
distinct advantages. They don't need an appointment. They don't
need to be intimidated by high-powered insurance salesmen. Nor do
they need to be on the telephone. They simply need some time
alone with a computer and to be prepared.
If you are planning to shop online, then you need to have some
basic information at your disposal. The first resource in the
list of necessary information would be a tax bill or an
appraisal. The home appraisal has much of the information
necessary to obtain an adequate quote. The market value of the
home, the square footage, and the value of the property minus the
value of the land are the most important criteria used to
determine the amount of home owner insurance needed. The market
value and age will dictate the type of policy to purchase. The
renewal declarations page is a valuable source of information for
the comparison shopper.
There are two primary types of home owner insurance: Actual Cash
Value and Replacement Cost.
Actual cash value is one way the insurance companies settle
losses. This method will calculate the actual replacement cost at
the time of loss and subtract any depreciation because of age or
use. You will generally see actual cash value policies written on
older homes. Many of your older homes have a market value much
less than the cost to rebuild. The homes built in the early
1900's are a good example, having ample amounts of ornate
woodworking, as well as other architectural details. With this
type of policy, these types or amenities will likely not be able
to be replaced by the insurance proceeds in the event of a fire
due to the depreciation component, which can be significant.
Replacement of these design details can be very labor intensive,
and thus costly. While the insurance proceeds would provide for
the repair and rebuilding of the home, there will likely not be
enough funds to pay for all of the previous fancy details. To be
certain of their replacement, the other form of home owner
insurance should be used.
Replacement Cost - This method is used for newer homes or homes
under construction. Replacement cost claim settlements use
materials of like kind and quality when repairing or rebuilding
the structure and there is no allowance for depreciation,
guaranteeing identical replacement of the original state of the
structure.
The correct square footage is very important as the online
insurance calculators determine the actual cost to rebuild your
home based on your square footage calculation. Any extras such as
air conditioning and fireplaces are upgrades that increase the
replacement cost value of your home. Finished basements and
outdoor decking also add to this calculation.
Generous discounts are given for smoke detectors, security
systems, dead bolt locks, and fire extinguishers. There are even
larger discounts for burglar and fire alarms that transmit
directly to the police station and fire department. Be prepared
with this information and your online shopping for home owner
insurance will be much quicker, easier, and more accurate.
Greg Roy is a widely recognized construction and real estate
expert who specializes in environmentally friendly homes. To
learn more about Home Owner Insurance, please visit his website
at
http://homeowner.insurance-deal-s.com
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