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Compare Home Insurance Options. Which One Suits Your Needs Best?

Having a property near a lake or ocean is fun. Whether it’s a secondary home, vocational/seasonal spot, or rental property, it’s vital to take home insurance cover to protect against flood, fire, and vandalism. 

The same applies to other waterfront properties such as boats and cottages. However, it can be overwhelming to decide on the best policy from available options. The first step in taking up a home insurance policy is getting a quote from different providers.

This post helps you compare home insurance options and decide which suits your needs best. Read on. 

Dwelling Coverage

Dwelling insurance or coverage is part of the home insurance policy that helps pay you for repairs or renovations of your home due to damage caused by a hazard. 

Standard home insurance policies cover typical specific perils or risks. However, the coverage may differ depending on the state or company. Likewise, the premiums may depend on geographical location, type of coverage, and insurance provider. 

Dwelling Home Insurance Policies By Company

The average yearly home insurance policy for a 40-year-old homeowner with good credit and claim history is $20,000. Different insurance providers have different rates, as shown below;

CompanyAverage yearly insurance rate($)
Erie969
USAA978
Progressive1080
American Family1105
Nationwide1075
Traveler1202
Allstate1300
State Farm1360
Farmers1617
Chubb1763

Source

 Quadrant Information Services 2022

When comparing quotes for new properties, you can use the Comprehensive Loss Underwriting Exchange (CLUE), which has reports of home insurance claims of properties. You can use this report to appraise your new property in matters to do with insurance and decide on the best quote.

Dwelling Home Insurance Policies By Coverage

You can compare the different coverage limits as you search for the best home insurance policy. With this in mind, you can estimate how much you should pay per provider. 

The dwelling home insurance quotes vary depending on the dwelling coverage and insurer. For instance, the following rates are applicable for different companies and insurance providers.

Company$150K$250K$350K$450K
Erie$611$897$1209$1528
AllState$1,024$1,458$1,913$2,389
USAA$716$992$1,250$1,520
State Farm$1,069$1,503$1,853$2,298

Source

 Quadrant Information Services 2022

The quotes are influenced by several factors, including the age of the house, type of roofing, safety measures, outdoor additions, and general improvements. Some companies can offer steep discounts if you’ve taken a few safety measures on your property.

For example, you may get discounts under the following circumstances:

  • Have a flood-proof foundation
  • Installation of hurricane and storm shutters on windows
  • Reinforce roofs or have sturdy roofing materials
  • Modernize your plumbing, electric, or heating system to minimize damage due to fire or water
  • Improve security by having smoke detectors, dead-bolt locks, and burglar alarms
  • Fire sprinklers installations
  • Smart security system installations

Dwelling Home Insurance Policies By State

A regular dwelling home insurance policy aligns more with your geographical location. That’s why different states have different coverages. In most cases, it does not cover hurricanes, floods, and sewer backups. 

Unlike a standard home, coastal properties have several risks, such as floods and hurricane attacks. Because of this, the coverage should be all-inclusive to cater to these misfortunes. Additionally, you can consider an additional cover against these natural hazards.

Here is a table to illustrate the average rates per state per year.

StateRate
Oklahoma$3519
Nebraska$2816
Kansas$2694
New Mexico$2024
South Dakota$1917
Texas$1863
North Dakota$1814
Tennessee$1625
Rhode Island$1193
West Virginia$1124

Source

 Quadrant Information Services 2022

Personal Property Coverage

Personal property coverage is part of your home insurance cover and helps you pay for repairs after a fire, loss, or theft. It also assists in replacing the lost items. 

Generally, most insurance companies provide a coverage limit of 20% to 50% of your property. Nonetheless, the cover does not include artwork, valuable collectibles, jewelry, and damage caused by floods and earthquakes.

When comparing different quotes, it’s essential to check the deductible rate applicable to your cover. You can discuss the out-of-pocket expenses for such items with your insurance provider before you sign up.

Liability Coverage

Liability coverage is a product that offers you protection against injuries or damage to third parties. It encompasses legal costs and possible payout if the judge finds you legally liable.

Further, it’s part of your home insurance policy and protects you from property damage and injuries lawsuits. Different home insurance policies have varying quotes when it comes to liability coverage. You can compare home insurance quotes from multiple providers and pick one with favorable rates.

Other Structures Coverage

The majority of home insurance policies encompass coverage for other structures within your property. Mostly, these are separate structures such as a tool shed, fence, and detached garage. 

Conclusion

If you live in the southwest, more so along the Gulf Coast between Florida and Louisiana, you’ll likely experience more storms during the year. So, there is more risk to the other structures on your property. Unlike regular homeowners’ insurance policies, coastal options are slightly pricey, especially if you incorporate the other structures’ coverage.

Comparing different home insurance policies is a straightforward procedure if you have everything at your fingertips. It’s essential to know all the policy details, including the coverage and deductibles. Interrogating the cover details can help you get a discount and reduce the overall cost of home insurance.

Max Francisco