The Cheapest Homeowners Insurance is a summary of a complicated process. Insurance carriers either hire actuaries or contract with an actuarial firm to review statistics, assess risk and therefore assign a premium charge to risk. This complicated process translates to premium charged for home insurance.
As a result of the above, carriers may have a lower (cheaper) premium in one area or in one size class of homes but then a higher premium in another! An insurance professional that understands the complete process should be able to explain exactly how this cumbersome but necessary process works.
In addition, insurance carriers all use a slightly different process in calculating the Replacement Value of Construction on each home, this calculation is the Dwelling Coverage assessed to rebuild the home in the event of a covered total loss. You may find cases where the 'cheapest' (price per thousand) insurance company may use a higher reconstruction value thereby complicating your process of finding the cheapest insurance premium.
If one is determined to find the cheapest insurance, it would be recommended to obtain quotes from several companies and compare the details. After answering all the characteristics related questions and other underwriting questions, there will be one further and critical issue after issuance of the policy: each company will send an independent inspector to take photos, take measurements and report any obvious hazards to the underwriter.
The inspection process is a necessary step paid for by the insurance company; it is a final check to assure that the risk has not been misrepresented in any way thus causing the carrier to take on adverse risk. Some carriers request only a drive by/exterior inspection and some carriers request a full inspection which will require making an appointment with the homeowner.
If following the inspection, there are any unacceptable underwriting hazards that were found, the underwriter will send out an advisory notice and if necessary a cancellation notice which may or may not include the possibility for corrective action. On another point, if the inspector finds that the home is customized, some carriers require inspectors to produce an updated reconstruction cost estimator which will accordingly increase the dwelling coverage amount on the original policy thus raising the original premium.
In summary, a homeowner should speak to an insurance professional, openly explain each and every concern and allow the professional to explain the process specific to the risk.
There is a link available providing an online format to obtain a quote and buy home insurance online in multiple States; may be used by Escrow/Closing Professionals, Mortgage Professionals, Real Estate Agents and directly by Consumers. An exemplary online experience for all! http://hda.stillwaterinsurance.com
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As a result of the above, carriers may have a lower (cheaper) premium in one area or in one size class of homes but then a higher premium in another! An insurance professional that understands the complete process should be able to explain exactly how this cumbersome but necessary process works.
In addition, insurance carriers all use a slightly different process in calculating the Replacement Value of Construction on each home, this calculation is the Dwelling Coverage assessed to rebuild the home in the event of a covered total loss. You may find cases where the 'cheapest' (price per thousand) insurance company may use a higher reconstruction value thereby complicating your process of finding the cheapest insurance premium.
If one is determined to find the cheapest insurance, it would be recommended to obtain quotes from several companies and compare the details. After answering all the characteristics related questions and other underwriting questions, there will be one further and critical issue after issuance of the policy: each company will send an independent inspector to take photos, take measurements and report any obvious hazards to the underwriter.
The inspection process is a necessary step paid for by the insurance company; it is a final check to assure that the risk has not been misrepresented in any way thus causing the carrier to take on adverse risk. Some carriers request only a drive by/exterior inspection and some carriers request a full inspection which will require making an appointment with the homeowner.
If following the inspection, there are any unacceptable underwriting hazards that were found, the underwriter will send out an advisory notice and if necessary a cancellation notice which may or may not include the possibility for corrective action. On another point, if the inspector finds that the home is customized, some carriers require inspectors to produce an updated reconstruction cost estimator which will accordingly increase the dwelling coverage amount on the original policy thus raising the original premium.
In summary, a homeowner should speak to an insurance professional, openly explain each and every concern and allow the professional to explain the process specific to the risk.
There is a link available providing an online format to obtain a quote and buy home insurance online in multiple States; may be used by Escrow/Closing Professionals, Mortgage Professionals, Real Estate Agents and directly by Consumers. An exemplary online experience for all! http://hda.stillwaterinsurance.com