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Three Ways Home Insurance Coverage Will Vary By State
2010-04-06
While the U.S. may technically consist of fifty equal states, there is nothing equal about the wide range of home insurance quotes that face the potential homeowner. Some states are extremely expensive when it comes to insuring a home, while the cost of policies in other states would barely make a mark on the household budget. When you are comparing home insurance coverage from state to state, make sure you look at the three different areas where policies differ: cost, coverage, and content.
The most noticeable difference between one state home insurance policy and another is the cost. Some customers face very high home insurance rates for no other reason than the fact that they happen to live in an expensive state. However, the cost of home insurance is not always directly reflective of home prices in the area. For example, Texas is currently the most expensive state in which to insure a home, but this has more to do with the inclement weather than home prices. You should consider the cost of insurance in a particular state before you decide to seriously put down roots. If you move to one of the more expensive areas to insure without first factoring the cost of the policy, you may regret it down the line.
Another key difference between states is the coverage limits of the individual policy. Most insurance companies choose a standard state home insurance plan that will cover all homes within its borders. They express the upper coverage limits through monetary amounts that are reflective of home prices in the area. The goal is to insure your home exactly to the level that it would need to be replaced if there was a disaster. Since the cost of the replacement would be cheaper in certain areas of the country, the home insurance rates in these areas reflect a lower housing market.
The last way that home insurance can vary between the states is in actual content. The best example of this problem is shown in California, where earthquake insurance must be added on to a standard policy. Even though earthquakes are a constant reality in the Golden State, most insurance companies consider them too volatile and unpredictable to be included in a standard policy. It is imperative that you look over your policy very carefully to decide whether you need to add anything to your policy to make sure it fit the needs of your state. You can often do this through outside organizations if your insurance company does not allow you to add what you need. Once you are fully covered, you will be able to enjoy the coverage you need in the state you love.