Compare Cheap Home Insurance: Price vs Coverage

Home insurance is the insurance that can be used to cover expenses required to repair damage to the house and anything contained within it. Finding it cheaply isn’t easy, especially considering that the costs of home repairs can run fairly high. Furthermore, the cheaper it is, the less likely it is the have the benefits that the policyholders may need.  In other words, finding cheap insurance isn’t simply the matter of finding the lowest price – the policy has to have enough coverage and benefits to make the savings meaningful.

What Home Insurance Covers

Before policyholders can begin to look for cheap home insurance, they must understand what it will and will not cover. Any insurance policy worth it’s salt should offer the following types of coverage.

  • Dwelling Coverage – Covers the house itself and the attached structures, as well as built-in appliances, plumbing, heating, built-in air conditioning systems and electrical wiring.
  • Other Structures Coverage – Covers detached structures such as garages and storage sheds, as well as fences, driveways and sidewalks. It should be noted that unattached structures that are used for business purposes are not covered by home insurance.
  • Personal Property Coverage – Covers personal belongings of anyone who resides in an insured home (guests don’t count). Most home insurance providers will not cover motorized vehicles. The providers may also limit coverage of firearms, artwork, business property, electronic data, jewelry and money that is physically stored inside the house. A good policy would cover damage caused by household pets.
  • Loss of Use Coverage – Covers living expenses for policyholders who can’t live in their homes while they are being repaired. This only applies if their living expenses exceed what they would normally spend at their homes.
Finding a Good Policy

The best way to find a good cheap home insurance polity is via the Internet. Most insurance companies have their rates posted on the Internet. Policyholders can use insurance rate comparison websites to cross-reference them. The companies usually place the all of the policies’ terms and conditions on their websites. Policyholders should check them carefully to see if this is what they want and check for any hidden fees and other questionable aspects. They should remember that if a cheap home insurance policy looks too good to be true, chances are it is. That is why it is important to check the company’s record by looking it up at Better Business Bureau and browsing customer complaint websites.

Ideally, cheap health insurance policies should have low premiums and low deductibles. Because the insurance is cheap, the insurance company that issues it would expect the policyholders to cover more costs from their own pocket, so deductibles tend to be higher than normal.  If the policyholders can’t find policies with cheap deductibles, they should look for low premiums – the two usually balance each other out.

Getting the Best Deal

Once a cheap home insurance policy is selected, there are several things policyholders can do to make it even cheaper.
  • Finding Discounts – Most insurance companies offer a variety of discounts. Broadly speaking, there is a discount for just about anything policyholders do in order to protect their homes and their health. For example, policyholders that install a security system or get a better lock may be eligible for discounts. The same goes for policyholders who, for example, abstain from smoking cigarettes and maintaining clean driving records. Different companies offer different discounts, and policyholders should check them carefully to find as many applicable discounts as they can.
  • Dumping the Unnecessary coverage – If policyholders don’t need certain types of coverage, there is no reason why they should take it out. For example, if they don’t have any freestanding structures on their property, there is no reason why they should get other structures coverage. That said, they should carefully consider the benefits of each type of coverage before deciding not to get it. When in doubt, it is usually best to get it – it will save money on the long run.


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