Smoke-Free = Savings

When you are shopping for home insurance, let the providers you are considering know if your home will be a smoke-free home. Smoking is a big contributor to the damaging of walls and ceilings over time, increasing the likelihood that repairs will be necessary. Cigarettes that are not properly put out are also a major cause of house fires. If you show that no one living in your house will be smoking, you may be able to get a discount when you’re buying homeowner’s insurance. Insurers like the fact that there is less chance of smoke and fire damage in your home.

Not many people think of this when shopping around, but you should take whatever discounts you can get. Not every company will offer this type of discount, but you won’t know if yours does unless you ask.

Why Buy Home Insurance?

People often wonder if they should buy home insurance even after they pay off their mortgage. After all, it's an expensive item and once the mortgage is paid in full there isn't a legal requirement to purchase home insurance. Here are the major reasons to buy home insurance even if it's not mandated by the mortgage company:

• Preserves and Protects. It might be more important than ever to protect the cost of a paid-in-full property against potential lawsuits or liability claims because there is more to lose. Don't risk losing everything you have worked so hard to preserve just to save a few hundred dollars; instead, preserve and protect it by buying an affordable home insurance product.
• Less Expensive Than Self-Insuring. There are a few online media gurus proclaiming the advantage of self-insuring a home or other property, but on closer inspection, that option rarely makes sense for anyone other than the wealthiest Americans. Instead, consider increasing the deductible on your policy and then setting aside the difference in a savings account. It allows you to benefit from an ultra-low home insurance premium while still providing comprehensive full coverage in the event of a catastrophic loss.
• Allows Refinancing & Other Options. If you have ever considered using your home as equity or collateral for a loan, it will be necessary to have insurance in place. Unfortunately, finding home insurance on a home that hasn’t been insured for years isn’t always easy. By keeping a commercial policy in effect, you assure you are able to obtain a policy and access to financing in the future.

Top 10 Most & Top 10 Least Expensive States For Insurance

How expensive is homeowner’s insurance in your neck of the woods? The Insurance Information Institute conducted a study and named the 10 most expensive and 10 least expensive states for homeowner’s insurance. If you find your state on the first list, you may have to spend a little more time shopping and comparing rates to find cheap homeowner’s insurance that gives you the coverage you need. People living in the states on the second list shopping for home insurance should have pretty good success price-wise. The it is a matter of finding the right policy for you. Here’s the rundown.

Most expensive:

1. Texas
2. Florida
3. Louisiana
4. Oklahoma
5. Washington, D.C.
6. Mississippi
7. California
8. Massachusetts
9. Rhode Island
10. Alabama

1. Idaho
2. Wisconsin
3. Utah
4. Oregon
5. Delaware
6. Ohio
7. Main
8. Iowa
9. Washington State
10. South Dakota

Five Reasons to Obtain a Free Insurance Quote

If you are like most Americans, chances are you've not shopped for home insurance for several years. In today's challenging economy, that is often a big mistake. Here are five reasons to obtain a free insurance quote today:

1. It's Easy. Shopping for insurance is easier than ever thanks to instant online quote services. Just fill-out one simple form to receive quotes from several providers in your area. Best of all, you can change deductibles and other coverage variables to determine the right mix of coverage versus savings for your needs.
2. It Saves Money. Let's face it, you probably have better things to do with your money, so why pay more than you need to, especially for the same coverage or even better coverage than you have now?
3. Update Old Information. Did you recently replace the appliances in your home or sell a hot tub? Get a new pet or send a student off to college? If so, your insurance needs to be updated. These and hundreds of other situations are easily forgotten when renewing a policy. With online forms, it's simple to update old information to obtain the right coverage for your present needs.
4. Review Coverage Changes. Remember all those letters the insurance company sent throughout the years? You know, the ones with the small print that you rarely took the time to read all the way through. Not only did they contain important information, but also there is a high likelihood other companies sent similar forms out. Obtaining a free insurance quote allows you to compare coverage options and exclusions while actually reviewing coverage changes.
5. Provide a Back-Up Plan. Millions of American's receive letters of cancellation each and every year, often through no fault of their own. By obtaining a free insurance quote in advance, you always have a back-up plan in the event your provider pulls out of the state or stops writing policies.

Avoiding Scams & Unethical Business Practices

Choosing homeowner’s insurance is not something that you just rush into, especially after being the victim of a crime, fire or natural disaster. Those are generally emotional times, and that is precisely when some scam artists will try to take advantage of you.

Twisting is a term used to describe when an agent will misrepresent the features of an insurance policy in an attempt to convince you to switch from your current coverage plan to the one they are selling. Why do they misrepresent the details of the contract? Most likely because it is not going to do all the wonderful things they are telling you it will. It may even be worse than your current policy.

This practice is usually done by door-to-door policy salesmen. Especially after an area has been hit by something like an earthquake or hurricane. So watch out for these scams. The best thing you can do is get free insurance quotes online and then contact the companies directly rather than putting your trust in a stranger who knocks on your door.

The High Cost of Cheap Homeowners Insurance

Most people consider buying insurance little more than a necessary evil, but there is often a high cost associated with the purchase of cheap homeowners insurance. Learn how to save money while still getting the right coverage by avoiding these common pitfalls:

1. Fly-by-Night Companies. Work with a reputable insurance provider with a good rating of at least a B or above. Avoid companies with a rating below B, but don't assume a more recognized name is automatically better. Many small insurance companies have great financials, so take the time to compare by contacting the insurance rating firms below:
   • A.M. Best Company (908) 439-2200
   • Fitch Inc. (800) 753-4824
   • Moody's Investor Service (212) 553-0377
   • Standard & Poor’s (212) 438-2000
2. Insufficient Assistance. While every insurance company provides some level of assistance, service can be inconsistent or simply inconvenient when working with some low-cost providers. Check the satisfaction rating of the company prior to making a final decision to determine if they provide adequate assistance and timely response in the event of a claim.
3. Inability to Provide Higher Risk Coverage. Many homeowners enjoy the convenience of having all policies in one place, which isn't always possible with some providers. If you have high-risk properties, rental real estate or other hard-to-cover needs, be sure to ask in advance whether or not they are able and willing to write different types of policies.

Territorial Ratings & Insurance

Territorial rating is a classification used by insurance companies to assess risk based on geographical location. For example, if you live in an urban environment with high crime rates, the provider might assume that you are at higher risk to have your property damaged or stolen. If you live in an area that is known for having a significant number of earthquakes each year, your territorial rating might be worse than others.

Territorial ratings are generally better in rural areas where there is a smaller perceived threat of accident, theft or vandalism. So an urban area with a high crime rate will most likely bring with it higher insurance rates than a rural area with low crime that does not have a history of being hit by natural disasters like hurricanes and earthquakes.

When you start shopping for homeowner’s insurance, ask prospective providers what they say your territorial rating is and how they came to that conclusion. If you have any questions about their assessment, contact your state’s Department of Insurance.

State-By-State Insurance Info

Homeowner’s insurance is regulated by state governments, so the issues facing one person may be different than those facing someone in another state. This is one reason why the Insurance Information Institute has added a state-by-state selection of PDF files to its website at iii.org, that provide many of the facts and figures related to insurance that you need to know.

Do you know what a hard market is? In the insurance industry, a hard market is considered a seller’s market, meaning that insurance is both expensive and in short supply. This can happen for any number of reasons. Since not every company is licensed to provide insurance in every state, your area will have a certain number of options to choose from. The fewer options there are could lead to a hard market because an insurer might not offer the policy you want or they might be limiting the number of plans they offer in your area.

So do you live in a hard market? Are you about to move into one? Once you know what is going on in your market you can get started shopping for homeowner’s insurance.

Doing Your Homework

If you are investing in the stock market you don’t just throw money at a company and hope it comes back to you with a profit, right? Well think of buying homeowner’s insurance in the same way. You want to do your research, not just about prospective insurance providers, but about industry issues, too.

This is where the Insurance Information Institute can be a big help. Here you will find, among other things, listings for companies that conduct research and provide ratings and analyses for a myriad of insurance providers. You can find out how financially stable they are, what their track record is when it comes to customer service, satisfaction and complaints, and much more.

You will also be able to track news stories, press releases and the latest studies and surveys relating to the insurance industry. All this will help you be better prepared to analyze free insurance quotes and be able to tell exactly what benefits each offer will provide you with. Knowledge is power, right?

Mortgage Requirements For Insurance

When you are buying a house you are most likely looking for homeowner’s insurance policies at the same time. For one, it is simply a smart thing to do. But there is another reason. Many banks will require you to buy home insurance in order to get a mortgage.

The bank may require a minimum amount of insurance you are expected to purchase in order to be approved for a mortgage, so make sure you know what that figure is when you start your search. In most cases, the minimum amount the bank wants you to purchase is for the total amount of your mortgage. Remember, it is an investment for them as well.

Once you know what the bank requires for the mortgage, start getting free insurance quotes online from several providers. A good place to start doing this is QuoteScout.com. That way you can get quotes from several different providers and compare them. They can then guide you through the process of how to buy homeowner insurance.