Donavan Insurance Group: How to Find Cheap Home Insurance in 2017

Donavan Insurance GroupHow to Find Cheap Home Insurance in 2017Finding cheap home insurance should be easy. Just call up some insurance providers,compare prices and choose the lowest one. However, with the importance of properhomeowners insurance price isn’t always the best comparison point. After all, homeinsurance doesn’t just protect the structure of your house. It also protects your belongingsand covers you in case you’re liable for someone else’s injuries or property damage whilethey’re at your home.Though a number of factors that determine your home insurance rates are beyond yourcontrol, in this article I’ll outline several strategies that will help you find cheap homeinsurance. You can start using one crucial strategy — shop around — with the online quotetool below. All you have to do is enter your zip code and you will be presented with anumber of options from top home insurance companies in your area.What Home Insurance CoversThere are several types of homeowners insurance, but they all protect your home from“perils,” which is just a fancy way of referring to something bad that damages yourproperty. Homeowners insurance policies are denoted by numbers: HO-1, HO-2, HO-3, andso on. HO-1 policies are so basic that most insurance companies have stopped selling them,so I won’t cover that type in depth.Both HO-2 and HO-3 policies protect your house and its contents in the event of these 16perils, according to the Insurance Information Institute (III):• Fire or lightning• Windstorm or hail• Explosion• Riot or civil commotion• Damage caused by aircraft• Damage caused by vehicles• Smoke• Vandalism or malicious mischief• Theft• Volcanic eruption

• Falling objects• Weight of ice, snow, or sleet which causes damage to a building• Accidental discharge or overflow of water or steam from within a plumbing, heating, airconditioning or automatic fire-protective sprinkler system or from a household appliance• Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot waterheating system or an air conditioning or automatic fire-protective system• Freezing of a plumbing, heating, air conditioning or automatic fire-protective system or ofa household appliance• Sudden and accidental damage from an artificially generated electric currentThe difference between HO-2, also called “broad form” policies, and HO-3, called “specialform,” is that HO-2 policies specify everything they cover, and HO-3 policies don’t. In otherwords, if you have an HO-2 policy and something happens to your home that isn’t on thelist above, you’re out of luck. HO-3 policies, on the other hand, cover everything that couldpossibly happen to your home except for what they specifically exclude. Standardexclusions include earthquakes, floods, war, nuclear disasters, neglect, and pests. HO-3policies are the most popular, according to the III.HO-5 policies are just like HO-3 policies, but protect your personal belongings, too. Thereare other types of homeowners insurance for special circumstances: HO-4 policies protectrenters, and HO-6 policies protect condo owners. HO-7 policies are for mobile ormanufactured homes, and HO-8 policies are specifically for older homes.What Home Insurance Doesn’t CoverNo matter what kind of homeowners insurance policy you buy, there are some importantthings that won’t be covered. Floods aren’t covered — you’ll need a separate policy for that(and it’s federally required if you’re in a high-risk area). Earthquakes or other “earthmovements” such as landslides or sinkholes also require separate coverage. Sewerbackups, mold damage, and problems resulting from neglect are also excluded fromstandard policies. Make sure you ask your insurer for a full list of exclusions — some maysurprise you.How Much Home Insurance Do I Need?First, you’ll need to calculate the full cost of replacing your home in the event of a total loss.This is the amount it would cost to rebuild your home in the same location using similarmaterials to what you currently have at prevailing labor costs. This number could be vastlydifferent than your home’s market value, experts warn. A professional estimate can help ifyou’re unsure.Second, you need enough to cover your possessions. A rule of thumb is a dollar amountequal to 50-75% of what it would cost to replace the structure of your home, discussedabove. So, if you figure on a rebuilding cost of $250,000, you’ll want at least $125,000 tocover your belongings. Conducting a home inventory by listing important items and their

values can help you arrive at a more exact number. Expensive possessions such as jewelryand fine art may require add-on coverage.Third, you’ll need to think about liability — that is, what you’ll be responsible for ifsomeone is hurt on your property. The minimum typically included in a standard policy is$100,000, but experts often recommend $300,000 to $500,000, according to the III.Finally, think about special situations, like where you would live if a disaster destroys yourhome. A standard policy may provide 20% of the cost to rebuild for you to use in thissituation, but you may have an option to add coverage. Also consider whether your home isat risk for disasters not covered by standard home insurance, such as floods orearthquakes. In these cases, you’ll need separate policies to protect your home.Picking a coverage levelEven after you’ve determined a dollar amount for coverage, you’ll need to choose betweenthree standard coverage levels for your home insurance policy:• Actual cash value: This is the least expensive level of home insurance because it factors inthe depreciation of your home and belongings, paying for only what these things would beworth today.• Replacement cost: This type of home insurance doesn’t factor in depreciation, but payoutsare subject to policy limits.• Guaranteed replacement cost: Like replacement-cost insurance, guaranteed replacementdoesn’t factor in depreciation. However, it also allows you to exceed your policy limits,paying whatever it takes to replace your home and belongings. These policies are the mostexpensive and might be hard to find. Some insurers offer extended replacement costpolicies instead. These typically pay up to 120% or 125% of your coverage amount.Our mission is to protect and enhance the financial resources of our clients, thus ensuringtheir security and quality of life, by providing sound professional management service.Donavan Insurance Group Services Inc. was established in 1986 as an independentinsurance agency with a reputation for Superior Service. Donna Martin-Boseker, who hasbeen in this industry since 1976, had previously worked in the agency when it was knownas Domex Insurance. She purchased the business in 1986 and renamed it DonavanInsurance Services Inc. We represent the best interests of our clients and tailor solutionsfor their specific insurance needs. We offer a broad portfolio of insurance carriers withhighly competitive rates. Our coverages include all forms of business and personalinsurance.