What does the basic homeowner insurance include?

Question

Hi, im from California and im helping my parents to look for a homeowner insurance for the home we just bought. The home is worth $500,000, we're thinking to buy a standard homeowner insurance... but i dont know what's the standard $... how much deducible should i do? and the liability... etc.. could somebody explain me how to buy a homeowner insurance? what to look for? and what to expect? any link would help too.

PS. should i also get auto insurance with it?

Answer 1

There are lots of people having the same question like you and yours is just another one. Basically speaking about car insurance<!--Car insurance is the most widely purchased type of insurance coverage. Car insurance is designed to protect you, your family, and your automobile. You may get your query answered here,

http://www.best-autoinsurance.we.bs/

Cheap car insurance is a popular avenue these days, but you should be sure that you're getting all of the coverage you need, as damage to your car or another-->person's car may cost you money out-of-pocket if you don't have sufficient coverage and your car insurance rate may go up.

Answer 2

Your parents need to insure the home for the cost of rebuilding it, which could be more or, more likely, substantially less than the purchase price. The higher the deductible, the lower the premium, but you will have to pay that amount out of pocket. To find the best coverage, speak with an insurance broker. A broker works with several companies and can find the best rates and coverage for you. To find a broker in your area, log on to a website like http://www.homeownerswiz.com and fill out a form requesting a quote. Since you are in California, I strongly recommend getting earthquake insurance as well. Earthquake damage is not covered by standard homeowners insurance, yet it can wipe out your equity and leave you trying to repair your home out of your savings. The chances of a major quake may seem remote, but the downside—having a home you cannot sell and cannot afford to repair—is too great to ignore.

Answer 3

starting where they have their auto is a good place to begin.  if they place the home there also, they will get a discount.  they will want to be on the best HO policy they can get.  Make sure the policy includes replacement cost not only on the home, but on the contents as well.  i would tell them to go with a MINIMUM of $500,000 liability on the home policy.  Liability is the cheapest part of the policy.  they need to make sure they schedule anything of value that has set limits on a home policy.  (ex: jewelry, guns, collectibles, etc)  I would also suggest to them getting an umbrella policy in place.  this protects over and above the limits on the auto and home and is very inexpensive.  you can get a million dollar umbrella for about $200 per yr.  they can contact a local independent agent for all 3 quotes.  they write for a lot of companies and can find them the best company and best rate.

Answer 4

The higher the deductible, the cheaper the policy.  It is definitely a good idea to get your auto insurance from the same company because most companies will give you a good discount on both the auto and the home insurance.  When you are selecting a company to go with, I would focus more on the auto insurance rates since those are higher than homeowners rates (at least in NY where I live)  Get a large enough homeowners policy to cover the cost to rebuild your house...which is more than you paid for it because it would now be a new house.  Look into similar brand new houses in your area to determine how much to get.  The policies will include coverage for your personal belongings, which most insurance companies will estimate for you, so you won't need to try to guess this number.  Also, remember that if the house is damaged then the land will still be fine - so you only want to insure what it would cost to put up a new house...not the cost that it would be to buy a new house + the land it is on.

Answer 5

OK, I don't think you're talking about BASIC homeowners, I think you're talking about STANDARD homeowners.  In insurance speak, those mean two completely different things.  

You are asking for a TON of information.  You need to sit down with a local, independent agent, who can get a variety of quotes.  Plan on spending up to an hour, to have the difference between basic and standard explained, as well as what is standard coverage.  

So, start with a local, independent agent.  They'll expain everything you need.