The Top Five Homeowners Insurance Questions

Posted by Tom Carolan on Fri, Nov 13, 2009 @ 04:09 PM

Got homeowners insurance questions? Here are the top five homeowners insurance questions complete with answers.

1. What does homeowners insurance cover?

Homeowners insurance protects your home and your personal possessions from damage due to fire, lightning, burglary, vandalism, and acts of nature. It also protects you against liability lawsuits if someone is hurt in your home and they sue you.

2. How much insurance do I need?

You need enough homeowners insurance to cover the cost of rebuilding yourcheapest homeowners insurance policy home if it's destroyed, to replace your personal possessions if they're damaged, and to protect you from liability lawsuits.

To assess how much home coverage you need, get the square-foot building costs in your area from a builder or a realtor, then multiply that figure by your home's square footage. For coverage for your personal possessions, take an inventory on everything you own and use the total value. And for liability insurance, figure enough coverage to protect your assets in the event you're sued.

3. What about flood and earthquake insurance?

Most standard homeowners policies do not provide flood or earthquake coverage. If you live in a flood or earthquake zone you'll need to get additional insurance.

4. Where can I get cheap homeowners insurance?

Insurance premiums can vary by hundreds, even thousands of dollars a year from one company to another, so the best way to get cheap homeowners insurance is to comparison shop. www.InsuranceBestPrices.com enables visitors to easily comparison shop the top insurers in the industry, helping them to secure the most coverage for the lowest cost.

5. How do I find a good insurance company?

Most states maintain a department of insurance website that provides a host of consumer information, including claims that have been filed against insurance companies. Also visit the "Resources" page of InsuranceBestPrices.com for some great online tools to help you find the best insurance coverage for your home.

J.D. Power & Associates rates homeowners insurance companies based on input from customers who own insurance policies with those companies. These ratings give you a good idea of how an insurance company treats its customers and how it pays its claims.