How to Compare Home Insurance Quotes Like a Pro
You have 3 PDF quotes in front of you. One is $800, one is $1,200, and one is $2,000. Is the huge difference a scam, or is the cheap one missing something critical?
Comparing insurance isn't like comparing airline tickets. The cheapest option could cost you your home if a disaster strikes. Here is exactly what to check.
1. Apples to Apples: Dwelling Coverage
Ensure all quotes are using the same **Dwelling Limit** (Coverage A).
Scenario: Quote A offers $300k coverage for $1,000/year. Quote B offers $400k coverage for $1,200/year. Quote B is actually the better value because it accurately reflects rebuilding costs. Quote A is "underinsuring" you to lower the price.
2. The Deductible Trap
This is the #1 way companies hide costs.
- Quote A: $1,000 Deductible.
- Quote B: 2% Deductible.
If your home is insured for $400,000, a **2% deductible is $8,000**. That means you pay the first $8,000 of every wind/hail claim. Double-check this percentage!
3. Check for ACV vs. RCV
We've mentioned this before, but it bears repeating. Ensure your **Roof** and **Personal Property** are covered for "Replacement Cost Value" (RCV), not "Actual Cash Value" (ACV).
If a quote says "ACV on Roof Surfaces," throw it in the trash unless you have $15k sitting in the bank for a new roof.
4. Loss of Use (ALE)
If your home burns down, where do you live for the 12 months it takes to rebuild?
Look for "Additional Living Expenses" or "Loss of Use" coverage. It should be at least **20% of your Dwelling Coverage**. Some cheap policies strip this down to save $20/year. Don't let them.
Conclusion
The goal is not to find the cheapest premium; it's to find the cheapest premium that actually protects you. Use our quote estimator to get a baseline, then challenge agents to beat it with identical coverage.
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