-
Step 1
Check the coverage amounts on each item listed. The common homeowner’s insurance policy is referred to as the basic form. It should address fire and lightning, windstorm and hail, damage from smoke, aircraft, vehicles, glass breakage, explosion, riot and civil commotion, vandalism, theft and personal property loss.
-
Step 2
Determine if the basic form will meet your needs, or if you need to consider a broad form policy. A broad form policy typically includes damages from ice, snow, falling objects, building collapse, water damage, frozen pipes, and injury from electrical appliances, fixtures, devices and wiring.
-
Step 3
Discover if the policy has a coinsurance clause, which means the property owner must carry coverage up to a certain amount of the replacement value of the property. If the insurer ignores this clause, and the home is worth far more than what it was insured for, it will adversely affect a possible claim.
-
Step 4
Discover if the policy covers replacement value for property, or a percentage of its replacement value.
-
Step 5
Understand that factors that affect a quote will include the credit history of the applicant, history of past insurance claims made by the applicant, and the insurance history of the property.
-
Step 6
Be prepared to buy separate flood or earthquake coverage if the property qualifies, and if you are willing to pay the additional coverage amount.
-
Step 7
Compare all lines on each quote, which might include items such as umbrella liability policies.
