What Determines a Home Owner Insurance Policy Quote?

Have you ever wondered what factors determine a home owner insurance policy quote? The three main factors that help determine your home owner insurance policy quote are the condition of your home, your valuables and possessions, and the kind of coverage you purchase.

The Condition of Your Home
If your home is in good condition, your home owner insurance policy quote will likely be much less than it would be if your home was in need of repairs. Repairs include replacing roofs, plumbing and electrical systems, as well as anything done to make your home safer, such as installing new windows, doors, locks, smoke alarms, and safety alarms. If you purchase a home owner insurance policy before these repairs and safety changes are made, make sure to notify your home owner insurance company to get a lower home owner insurance policy quote.

Your Valuables and Possessions
If you have expensive jewelry, artwork, a coin collection, a gun collection, or anything else of extreme value in your home, you can get a lower home owner insurance policy quote by storing these items elsewhere. For example, you can get a safety deposit box at the bank in which to store your valuables. If you acquire more possessions after you’ve already purchased a home owner insurance policy, you need to contact your home owner insurance company and have these items placed on your policy; otherwise, they may not be covered in the event of disaster.

The Kind of Coverage Your Purchase
There are basically three kinds of coverage you can purchase: Replacement cost, which will pay to replace your home without a deduction for your home’s depreciation; extended replacement cost, which will pay to replace your home up to a particular percentage over your actual policy; and actual cash value, which will pay to replace your home after depreciation deductions have been made. The kind of coverage you purchase is up to you.