How To Read Your Homeowners Insurance Quote in 5 Steps

How-To-Read-Your-Homeowners-Insurance-Quote-In-5-Steps

When shopping for homeowners insurance, getting a quote is always part of the process. But these forms can feel intimidating to read as they contain plenty of talking points and insurance jargon. It can be easy to feel as if you have information overload. Not to worry! There’s no need to complicate things, and Freedom Insurance Group has put together an easy guide for Texas homeowners looking to understand better how to read an insurance quote.

Understanding Home Insurance Policies Starts With a Quote

Comparing your homeowners insurance coverage is a great way to save money. Different companies will provide you the same coverage at different rates and the best way to determine which home insurance company is right for you is to shop among multiple brands. Keep in mind that each home insurance brand may look a bit different, but the idea is always the same. Here’s how to read your home insurance quote:

 1. An Overview of Your Home Insurance Policy:

On the first page, you’ll notice that a general overview is presented when requesting your quote. You’ll find the policy period, costs, and potential discounts here. If you are purchasing multiple policies such as a home and auto policy or adding umbrella coverage, you’ll also find their overview here as well as the potential savings you’ll incur by bundling.

Because there are many ways to pay, you’ll notice different cost structures and amounts. Many insurance companies offer discounts for policyholders who pay all at once or in two payments rather than monthly:

homeowners-insurance-quote-overview2. Coverages and Deductibles:

Your second page will break down your specific home insurance coverages and deductibles. Home insurance coverages are a collection of protections that work together to insure that you, your home, and your personal property are covered against a variety of perils. This includes the following:

  • Coverage A protects your home’s dwelling and is the largest portion of your policy.
  • Coverage B protects the other structures on your property that may be damaged including detached garages, your driveway, fencing, etc.
  • Coverage C safeguards your personal property, even if it’s damaged or stolen outside of your home.
  • Coverage D focuses on additional living expenses (ALE) in the event your home is damaged or destroyed and it causes you to be displaced.
  • Coverage E helps protect you against personal liability concerns such as an injury sustained by a visitor while on your property.
  • Coverage F will help pay for medical expenses of those who live outside of your household should they become injured while on your property.

In addition to these policy limits, you’ll also notice that your deductibles are stated. A deductible is how much you’ll have to pay on your own before receiving reimbursement from your home insurance company after submitting a claim:

coverages-homeowners-insurance-quote

3. Additional Coverage Options and Endorsements:

Homeowners insurance isn’t blanket coverage. This means that there are additional threats that may cause damage to your home to consider outside of what a standard home insurance policy will provide coverage for. Here is where you get to view the additional protections available to add to your home insurance for better protection. The coverages included with your policy will be marked, as well as a breakdown of additional costs for those not included:

additional-coverages-homeowners-insurance-quoteYou’ll also notice that this portion of your homeowners insurance quote will include information about your roof. This is important for homeowners, as having a roof that is in need of repair or replacement can cause your premiums to grow, as well as, disqualify you as a client for home insurance brands not wishing to take on the added risk.

Related: How Much Does a New Roof Save on Home Insurance in Texas?

4. Payment Options:

Having a detailed breakdown of your payment options is great for multiple reasons. You’ll be able to see exactly what you’re paying, why you are being charged, and the options available to even save money on your coverage. Remember, discounts are typically available to those who use electronic or automatic billing. They are also often available for those who pay in full rather than monthly:

 payment-options-homeowners-insurance-quote5. Dwelling Information and Home Features:

The last major component of reading your homeowners insurance quote comes down to assessing the features of your home and your dwelling coverage.  This is meant to get an estimate of replacement cost in case of a total loss.  This replacement cost breakdown is worthy of the largest part of your home’s protection providing you and your insurance company with detailed specs of both interior and exterior features:

dwelling-information-homeowners-insurance-quote

Accurate Quotes Come From Accurate Information

You’ll likely also find a disclaimer page speaking about the fact that your dwelling coverage represents the lowest amount for reconstruction and the need for a higher policy amount may be added. This is because quotes, while accurate, aren’t the final word. The best way to get a more accurate quote is to be as accurate as you can with the information you provide. This creates a better overview of what your costs will be and allows your home insurance quote to be the best representation of your future policy.

Additional Quotes

It’s common for homeowners to need multiple forms of coverage. This could mean insuring your vehicles, insuring your boat, protecting against liability with umbrella coverage, and so forth. Bundling is a great way to get more for less as you’ll receive great discounts for purchasing multiple policies.

If you are receiving multiple policies, you’ll notice that an auto insurance quote or an umbrella insurance quote will look and feel very similar to a home insurance quote, but obviously focused on their specific protections. These forms will come with your homeowners insurance quote featuring policy limits, coverages, personal information, discounts, etc.

Get Fast, Accurate Home Insurance Quotes in Texas

Working with an insurance agency that represents multiple home insurance companies can help you determine the best coverage for your home, more accurately, and with less hassle. This is why Freedom Insurance Group works with more than 25 top-rated insurance providers available to Texans.

We have online tools available to help you receive a variety of insurance quotes including home insurance, auto coverage, umbrella policies, and more. Since 2005, we’ve helped Texans save an average of 40% on their coverage. See the difference we can make by contacting an agent or choosing from one of our free, no-obligation insurance quote tools below:

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769

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