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Is there anyway to get decent homeowners insurance at a cheap price?
Question : Is there anyway to get decent homeowners insurance at a cheap price?
My husband and are in the process of purchasing a small home. We are seniors living on a fixed income and have to watch every penny. We have two weeks to find the homeowners insurance and they all seem to be so high in price. Does anyone have any ideas how we find an affordable homeowners insurance?
cheap homeowners insurance
Best answer:
Answer by wfr21
You need to have a policy to satisfy the Bank unless you are paying cash for your house. The homeowner hazard insurance your Bank more than likely requires you to purchase is an all risk policy called an HO3, one that replaces your house, and replacement cost is what the insurance company uses to base its premium that they charge you. Usually the Bank in not concerned about the amount of deductible you include in the policy so remember the higher the deductible the somewhat lower the premium. I would ask an insurance company to provide you quotes on an HO3 with several deductibles like $ 500, $ 1,000 and $ 5,000 to see how affordable those premiums might be for you. Liability and medical payments cost very little and having them may prove to be important so having $ 300,000 or $ 500,000 liability and $ 2000 or $ 5,000 medical payments won’t break the bank. You can always make changes to your policy AFTER you purchase the house as long as you comply with the Bank’s policy.
If you live in states like Florida or the Hurricane alley states you may only have a few companies to choose from whereas your choices will be numerous in most other states. Find an independent agent to help you with your search and don’t begrudge him his commission when he finds the lowest cost premium insurance even though it may be more than you want to pay.
Not having any idea WHY they’re so high in price, they’re probably all going to be in the same ballpark.
It could be your claims history, it could be your location (Florida?), but if you’ve gotten multiple quotes, all in the same range, then that’s how much it’s going to cost.
You can lower your cost without sacrificing coverage by raising your deductible – A LOT, or maybe you want to eliminate theft coverage from your policy.
There’s no shortcut, and there’s no “secret” way to cut your insurance in half. I’m thinking you’re going to have to rethink this purchase, because insurance is usually part of the deal.