The Best Home Insurance for 2015

If you’re looking for the best home insurance, there are several national and local insurance companies that will want your business. However, it’s hard to decide which company to pick with so many choices.
Companies like Amica Mutual stand out in customer surveys, but they aren’t available everywhere. The best way to find fair rates on homeowners insurance is to get free online quotes from a variety of companies.
There’s more to take into account than just price, but it’s a good starting point. I’ve included a quote tool below so you can shop around right away. Enter your zip code in the box and click “Get Quotes” and you’ll be presented with a list of 3-5 of the best homeowners insurance companies in your area. You can research policies from each provider and determine which is the best fit for your home and your budget.

The best home insurance companies will perform exceptionally well in three critical categories:

• Price
• Claims
• Coverage

Although Amica ranks highest in customer satisfaction by J.D. Power, companies like State Farm, Liberty Mutual, and Allstate also rank well in these areas and are worth considering.
There are many reputable national carriers offering similar types of coverage. To find the ideal option for you, the best way to start is by getting an online quote to get an idea of the average rates and companies offering insurance in your location.

Choosing the Best Homeowners Insurance Company

Price

In order to get the most accurate estimate of what your homeowners insurance will cost, I recommend utilizing the online quote tools found on the insurer’s website or the comparison tool I included at the top.
To give you an idea of what insurance prices look like from some of the best insurance providers, I got a quote for a home in a Chicago suburb.
These are the monthly quotes I received:
Amica: $75.33
State Farm: $117.75
Liberty Mutual: $129
Farmers: $150
Amica came out to be considerably cheaper than the next provider in this scenario.
Each homeowners insurance company asks for slightly different information, but as I went through each online tool I used the same profile with the following characteristics:
Location: Address located in a Chicago suburb
Home Value: $315,000
Deductible: $1,000
Size: 1,900 square feet
Applicant Age: 40
Home Type: 1 story
Roof Type: Asphalt shingle
Payment Terms: Monthly
The great thing about online tools is that you determine the exact type of coverage you want, select the level of your deductible, and choose the payment terms. It might take a little extra legwork, but online quote tools really do put the power in your hands to find the cheapest policy.
Many online tools, like the one provided by Liberty Mutual, enable you to modify the coverage levels you select, so you can clearly see how changing one component directly impacts the price of your policy. (For example, you could enter a low value for your deductible, see what your rates look like, then enter a high value and see how your rates changed.)

Homeowners Insurance Discounts

All of the best homeowner’s insurance companies offer a variety of discounts. If you fail to take advantage of these discounts, you’re just leaving money on the table. To give you one example, if you took advantage of a multi-policy discount and bundled the same State Farm home insurance policy quoted above with an auto insurance policy, your monthly rate would drop from $117.75 to $76.50. That’s almost $500 in savings per year!
When it comes to discounts, Liberty Mutual is one of the most competitive providers.
Some of their discounts include:

• Multiple-policy Discount: Available if you have an auto, life, or other type of insurance policy with the same provider.
• Protective Device Discount Available if you have a home security system, sprinkler systems, fire alarms, or other security devices in your home.
• Claim-Free Discount: Available if you haven’t filed a claim over a certain period of time.
• Exclusive Group Savings Available if you have membership or affiliation with certain businesses or organizations. Liberty Mutual’s group savings network includes more than 14,000 employers, alumni associations, and professional associations.
• Newly Purchased Home: Available if you recently purchased your home.
• New/Renovated Home Available if you recently renovated your home.
• Early Shopper Discount: Available if you request a quote before your current policy expires.
• Insured to Value Discount: Available when you insure up to 100% of the cost to replace your home.

Take advantage of Liberty Mutual’s discounts by completing an online quote on their website.
The best homeowner’s insurance companies offer a high number of discounts, helping you keep your premium low. If you’re unhappy with your current policy or feel like you’re paying too much, you can always get a quote with a new provider that offers discounts that better match your profile.
Selecting an insurance company that maps to your discount profile can result in major savings.

Factors that influence home insurance

There are several factors that influence the cost of your homeowners insurance policy. You won’t be able to change or control many of these factors. However, identifying the characteristics you can modify and making the appropriate adjustments can help you keep your rates low. The most common factors that influence your homeowners insurance premium include:
Home’s age and type of construction: If your home is older, there’s a higher chance there will be problems with major components like plumbing, electrical wiring, and HVAC systems. New homes are less susceptible to these major problems.
Location: If you live in an area prone to natural disasters, with a relatively high crime rate, or located far from emergency services, expect to pay more for your policy.
Claims History: If you file several claims a year, you are more likely to pay a higher premium.
Risk Factors: If your home has a swimming pool, aggressive dog, trampoline, or other characteristic deemed risky, you’ll likely pay a higher premium.
Credit Score: Your credit score (whether good, bad, or average) has an impact on the price of your policy.
Deductible: The level of deductible you choose plays a role in the price of your coverage. If you choose a high deductible, that means you have to pay more out of pocket if an incident does occur. The trade-off is a lower premium. (As a side note, I recommend sticking with a deductible you’re comfortable with. If your home is damaged, coming up with $1,000 is probably manageable. Coming up with $2,500 or $5,000 is probably going to be more difficult for most of us. Remember, your insurance won’t kick in until the deductible is met.)
Coverage Amount: The amount of coverage you select will play a role in the price of your insurance.
You can’t control the location of your home, but you do have a say in whether you get a trampoline or an aggressive dog.
By choosing to minimize the risks that are in your power to control, you’re helping keep your premium low.

Claims

The circumstances that surround filing a home insurance claim have the potential to make the whole ordeal quite stressful. When your home has been damaged, the last thing you want to do is go to battle with an insurance company that you’ve been making payments to for the last several years.
Based on data from studies conducted by J.D. Power and Associates and ConsumerReports.org, when it comes to filing a claim there is a clear distinction between the different insurance companies. The company that excelled in both studies was Amica Mutual.
Amica is one of only two companies to receive above average ratings in six different categories in the J.D. Power 2013 U.S. Household Insurance and Bundling Study. These six categories measure factors like Overall Satisfaction, Price, Policy Offerings, Claims, and other characteristics fundamental to quality homeowners insurance.
Amica also ranked at the top of Consumer Reports’ homeowners insurance ratings. This study measures existing customers’ satisfaction with agent availability, the dollar estimate received when damages occur, and timely payment by the insurer.
In the event that you do need to file a claim, it’s comforting to know you can easily contact your agent, be treated fairly, and get the money you need to make repairs quickly. Ranking exceptionally well in separate studies conducted by two of the most reputable companies is a good indicator that Amica is doing something right.
(As a side note, the other insurance provider that ranked well in both studies is USAA. However, a major drawback of USAA is that membership is limited to those with military affiliation. If you, your spouse, or one of your parents have served in the military, USAA is definitely worth looking into.)

Coverage

The main reason you buy an insurance policy is for the coverage it provides. State Farm stands out for offering excellent coverage options, some of which include:
Dwelling Coverage: The part of your policy that helps pay to repair or rebuild your home if damage is the result of a covered loss. Critical home components like plumbing, electrical wiring, or your HVAC system fall into this category.
Liability Insurance: Helps protect your assets and cover costs associated with a lawsuit when you or a family member are responsible for injuring another person, or if someone is injured on your property. (For example, if your dog bites your neighbor.) It also provides coverage if you or a family member causes damage to another person’s property. $100,000 is a good benchmark for liability coverage, but this will vary depending on the size of your home and the assets you need to protect.
Other Structures: Covers the cost of repairing (or rebuilding) detached garages, sheds, and other similar structures.
Personal Property Coverage: Covers your clothing, electronics, furniture, and other personal property that is damaged or destroyed by a cause that is covered by your insurance. Most top insurance companies provide checklists, personal property calculators, or other resources to help you document your belongings. For example, Liberty Mutual provides a mobile app where you can upload pictures, receipts, and more.
Loss of use: If your home is damaged to a degree that you have to temporarily move out while it is being repaired, loss of use will help pay your housing and living expenses.
Guest Medical Coverage: Provides coverage for medical bills and related expenses when someone is injured on your property, but they do not want to sue you. $1,000 per person is a common level of coverage, though some homeowners choose to take out an extension for added protection.
Most of the top homeowners insurance carriers offer similar types of coverage. The best way to find the right homeowners insurance package is by comparing rates and coverage options through an online quote.

Additional Protection

In addition to the basic coverage options listed above, the policies of each major company include other types of coverage to complement the basic options outlined above. For example, Allstate also offers optional coverage for identity theft restoration, scheduled personal property, water backup, and more.
Most home policies cover damage from wind and fire, but natural disasters like floods or earthquakes almost always have to be added on as an additional policy option. If you live in areas particularly susceptible to these threats, you should look into the catastrophic coverage options offered by the provider before making a purchase.

Don’t Own a Home?

Homeowners insurance obviously won’t be of much interest to you if you don’t own a home. If you’re currently renting or making the move soon, you won’t want to miss my next article that discusses the best renters insurance companies and shows you why one is better than the rest.

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Why You Probably Don’t Need Rental-Car Insurance

Before you hit the road in your rental car, check whether you really need that extra insurance. Photo: Aurelio Firmo

Your bags are packed, you’ve found a sitter for the dog, and you’ve suspended your newspaper subscription for a few days. That can only mean one thing: You’re going on a trip.
This year, consumers will take 1.6 billion leisure trips across the United States, reports the U.S. Travel Association, a trade group. Nearly eight in 10 travelers will go on their adventures by car, many of them rented.
Before drivers leave the rental-car lot, the salesperson will pitch an optional collision damage waiver (CDW) or loss damage waiver (LDW), which is the rental company’s version of car insurance (although it only covers damages to the rental car and not personal injury). Between the jargon and additional surcharges (what the heck is an energy recovery fee?), things can get overwhelming in the few moments you have to complete the paperwork.
In fact, 42% of consumers are thoroughly confused about insurance coverage when renting a car, reports the National Association of Insurance Commissioners (NAIC). And to make sure they’re covered, 34% will automatically shell out the extra cash “just in case.”
So it’s no wonder that the $36.4 billion rental-car industry rakes in the profit with its optional rental insurance, says IBISWorld, a market research firm.
But after spending an average of $66 per day for a car, reports AAA, do consumers really need to pay an extra $5 to $20 per day for rental-car insurance?
If you paid for the car with a credit card, probably not.
As a membership perk, many credit cards offer rental-car insurance, such as collision damage and theft protection. But the coverage on these cards is usually secondary insurance — so you’ll have to file a claim with your primary car insurance company first — and will only cover things like your deductible and towing charges, reports the Insurance Information Institute.
Nonetheless, about one in four consumers doesn’t have a clue whether or not their credit card provides any type of coverage, adds NAIC.
To inform drivers of their options, consumer website CardHub examined four of the major credit card networks and their rental-car insurance policies. In its “2014 Credit Card Auto Rental Insurance Report,” CardHub found that while some offer better coverage than others, all have limitations in their coverage — be it rental time limits or country exclusions. Additionally, none of the card networks covers exotic, expensive, or antique cars, trucks, vehicles with open beds, or recreational vehicles.
“So far, AmEx would be best,” says CardHub spokeswoman Jill Gonzalez. American Express was rated No. 1 in CardHub’s study because it offers the most comprehensive coverage, has insurance on all of its cards, and its policy information was easily accessible. But it’s also the only card that doesn’t offer coverage for popular SUVs, including the Chevrolet Tahoe, Ford Expedition, Land Rover Range Rover, and Lincoln Navigator.
Here’s a snapshot of each credit card network’s coverage:
American Express: All its cards offer insurance, and rental coverage lasts up to 30 days. Towing charges, damage to tires and rims, and accidents that occur on dirt and gravel roads are covered. The loss of use of the car and insurance deductible are also covered. Some SUVs and luxury vehicles, vans, and trucks aren’t covered.
Discover: All its cards offer coverage, which lasts up to 31 days. Its policy covers towing fees, damage to tires and rims, and accidents on dirt and gravel roads. But the loss of use on your auto insurance isn’t covered. Luxury vehicles, vans, and trucks also aren’t covered.
MasterCard: Its insurance policy is limited to World cardholders. Coverage lasts up to 15 days for World cards, and up to 31 days for World Elite cards. Towing and damage to tires and rims are covered, as are accidents that occur on dirt and gravel roads that the city routinely maintains. The loss of use and insurance deductible are also covered. But luxury vehicles, vans, and trucks aren’t covered.
Visa: Rental-car insurance benefits are offered to all cardholders. Towing charges for the vehicle and the loss of use and deductible on your auto insurance policy are covered. However, coverage is limited to 15 days domestically, and accidents that occur on dirt and gravel roads are not covered, and neither is damage to the tires and rims of the vehicle. Luxury vehicles, vans, and trucks also aren’t covered.

Comparison of Credit Card Rental-Car Insurance
	American Express	Discover	MasterCard	Visa
Card Type	All cards	All cards	World and World Elite cards	All cards
Vehicles Excluded	Antique, exotic, or luxury vehicles, vans, trucks, pickups, motorcycles, recreational or off-road vehicles, and some popular SUVs	Antique, exotic or luxury vehicles, vans, trucks, pickups, motorcycles, recreational, or off-road vehicles	Antique, exotic or luxury vehicles, vans, trucks, pickups, motorcycles, recreational, or off-road vehicles	Antique, exotic or luxury vehicles, vans, trucks, pickups, motorcycles, recreational, or off-road vehicles
Rental Coverage Duration	Up to 30 days	Up to 31 days	Up to 15 days for World cards; up to 31 days for World Elite cards	Up to 15 days for rentals in your country of residence; up to 31 days outside country of residence
Road Exclusions	Accidents occurring on dirt and gravel roads are covered	Accidents occurring on dirt and gravel roads are covered	Accidents occurring on dirt and gravel roads frequently maintained by municipality are covered	Accidents occurring on dirt and gravel roads are NOT covered
Country Exclusions	Theft or damage  in Australia, Ireland, Israel, Italy, Jamaica, and New Zealand	Theft or damage in Australia, Ireland, Israel, Italy, Jamaica, and New Zealand are NOT covered for the Escape card. There are no country exclusions for the rest of the cards.	Theft or damage in Israel, Jamaica, the Republic of Ireland, or Northern Ireland are NOT covered for Standard, Gold, and Platinum cards. The World cards do not have any country exclusions.	Theft or damage in Israel, Jamaica, the Republic of Ireland, or Northern Ireland.
Loss of use of rental car	Yes	No	Yes	Yes
Deductible on your auto insurance	Yes	Yes	Yes	Yes
Towing Fees	Yes	Yes	Yes	Yes
Damage to tires and rims	Yes	Yes	Yes	No

Confirm That You’re Covered Before you’re blindsided at a Hertz or Enterprise Rent-A-Car counter about CDWs and the potential protection you may already have, you should do your research. To qualify for a credit card’s supplemental insurance, card issuers typically require that you’re the primary renter of the car, that you pay for the car with the credit card that provides the protection, and that you decline the rental company’s supplemental insurance, or CDW/LDW.
To know exactly what type of insurance benefits you have (and how to use them) call the toll-free number on the back of your card. Then ask them to send you their coverage information in writing so it’s easier to resolve any disputes down the line.

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How to Get Cheap Life Insurance in USA

Finding a cheap life insurance policy that offers the right amount of coverage is at the forefront of any first-time buyer’s mind. The same goes for someone who’s simply looking for a better rate.
If you want to get the most affordable life insurance, there are several things you can do to minimize costs. I have six tips to help you find cheap life insurance, which I’ll be sharing with you in this article.
It’s true there are factors you have less control over when it comes to the cost of life insurance, but there’s a lot within your control too.

Here are the 2 basic starting points for getting cheap life insurance:

1.     Target a term life insurance policy.

2.     Get quotes from multiple providers.

6 Tips to Find Cheap Life Insurance

Life insurance can be tricky to understand. Many companies analyze your health differently and also calculate risk in slightly varying ways. Following these steps is key to finding the cheapest life insurance for you.

Tip #1: Get several quotes

As with most purchasing decisions, finding many options will give you an edge. Most people don’t bother obtaining multiple quotes because it’s time-consuming. However, using an online quote tool is the quickest way to get quotes from several reputable insurers at one time.

Tip #2: Avoid riders and additional insurance

If your bottom-line goal is to find the cheapest insurance possible, you’ll want to say no to any add-on insurance or policy riders. Examples of add-ons include the option to purchase child policies or more insurance at a future date without going through the medical exam process again.
You can think of riders as à-la-carte options to supe up your policy. Riders can be purchased to accelerate your death benefit and pay you out for medical expenses if you have a terminal illness but haven’t passed away yet. Term conversion is another rider that gives you the option to convert your term policy to a permanent (whole life) policy.
A caveat: Choose your coverage wisely. If you need coverage for your kids, then it is OK to pay for the extra coverage. Also, if you’re someone who is on the fence between term and whole life coverage, the term conversion rider will give you that option down the road for a few dollars per month.
There is no one-size-fits-all method to buying life insurance, but having as few riders as possible will keep your rates low.

Tip #3: Say no to one-company local agents

Experts are available to help you through the process of purchasing life insurance, and many of the largest insurance companies have their own networks of agents. If you need the human touch, I would avoid one-company local agents because they usually represent the interests of their own company, which essentially lowers your options. If they happen to represent the cheapest and the best life insurance company, that’s another story!
A good strategy is to seek out a financial advisor, like Edward Jones, that covers several different insurers. This way, your advisor will be more impartial even though he or she has personal preferences.

Tip #4: Don’t wait

Generally speaking, the younger and healthier you are, the cheaper your insurance costs will be. If you’re in your mid-20s and are thinking about lifestyle changes like marriage and kids, it can pay off to buy a policy now rather than waiting. The biggest reason is that you never really know how your health will change at any time.
As a summer intern, I sold my future father-in-law a life insurance policy on his 19-year-old daughter. After that, she was diagnosed with a condition that would prevent her from being insured today. Not waiting made all the difference.

Tip #5: Bundle coverages if you can

One way to receive discounts on your quoted life insurance rate is to bundle coverage with your car, home, or other insurance. Large insurers like State Farm can be fairly cheap life insurance providers because they give you the most options to bundle.
A good strategy to maximize your bundled discounts is to review all of your insurance at the same time and pick the company that can give you the best deal for switching. This is more work in the short term, but can pay huge dividends in the long run.

Tip #6: Check the financial stability of the insurer

Cheap life insurance can be a very bad deal if the insurer isn’t financially healthy enough to pay out when the time comes. After you go through online quotes, always check the financial reputation of the insurer so you don’t pay premiums for years only to find out the company can’t pay out any claims.
A.M. Best is an insurance rating agency and provides up-to-date information on the financial health of most life insurance companies. Use them to check on a company, especially if you haven’t heard of them or if they’ve started operations within the last 10 years.

Why is Term Life Insurance the Cheapest?

You generally have two options for life insurance. There are various hybrids and nuances, but a life insurance policy is usually either:

• Term life insurance
• Whole life insurance

What is term life insurance?

Term life insurance acts much like your auto insurance, so it’s much easier to understand. Like your car insurance, you pay a premium each month for the period of time you wish to be covered, and if you don’t use the insurance (i.e. pass away) in that time period, the insurance company keeps the money and does not have to pay a death benefit. This is just like your auto policy — if you don’t get into an accident, there is no payout from the insurance company.
Term insurance is generally cheaper because the coverage is only provided for a specific period of time. In most cases, the insurance company will never pay out because you will outlive the term and the policy will expire. However, term life premiums can and do rise with age, whereas whole life premiums stay steady. Late in life, they can become cost-prohibitive.

What is whole life insurance?

Whole life insurance is a life insurance policy that remains in force for the insured’s whole life. In this case, you or your survivors are guaranteed to receive a payout from the insurance company as long as your payments are current.
Whole life insurance has an investment growth component to it where dividends are accumulated tax-deferred. Part of your premium pays for the death benefit and part of your premium is invested to produce these dividends and increase your policy’s “cash value.” Your cash value typically can be accessed during your lifetime, which is a nice living benefit.
Your premium payment is generally higher than with term life, but does not increase over time. Your premium stays the same once your policy is in force no matter what your health or age is. Additionally, because of the cash-value buildup, at some point you can usually use the growth in your policy to pay your premium. This way, you can have a policy in force for the rest of your life without making another out-of-pocket premium payment.

What impacts your life insurance rates?

Once you choose the type of insurance you want, your actual insurance cost is based on many factors, with age and health being the biggest factors. For either term or whole life, the following factors can impact how much you pay:

• Overall health
• Smoker/non-smoker
• Family history
• Age
• Gender
• Lifestyle (high-risk activities)
• Career
• Location

How I Use Life Insurance

Experts argue about which is best, but there is a specific purpose for both term and whole life insurance. If you structure them properly you can create a very affordable life insurance program that is comprehensive enough to meet all of your goals.
Here is how I approach life insurance:

• I use term life to cover my fixed debts, or expenses that are likely to only exist for a fixed period of time.
• I supplement long-term coverage with a whole life policy that has more growth and tax-advantaged features.

I am 32-years-old, married, have two young children, and have a home with two vehicles.
I use cheap term life insurance to cover the debts that care for my kids and revolve around family expenses of our home.
If I died tomorrow, here is what I would want covered:

• My mortgage debt so the house will be paid off.
• Vehicle ownership expenses so my cars will be paid off.
• Approximate child expenses for 18 years.
• Cost of four-year college tuition for two kids.

These expenses roughly end 20 years into the future, so I try to match my coverage term to that time frame.
When I started looking into life insurance, I had recently graduated from college and didn’t have enough money to purchase a whole life policy, so I bought a term life policy.
I made sure my term could be converted to whole life insurance. I value this conversion flexibility because I like the idea of growing my money tax-deferred, and estate tax policy is in constant flux.
I plan to leave money to my children, and this gift may be taxable in the future. I can use whole life to cover any tax implications for my kids at the time of my death.
Granted, I do understand that what I’ve outlined here may not be the cheapest, but I wanted to provide some personal details that may help you.

How much should you buy and when should you start?

A very general rule of thumb is to purchase at least 10 times your annual salary in life insurance. So, if you make $50,000 per year, you would want to look at a $500,000 life insurance policy. As you can imagine, this calculation might not fit your unique situation.
For a more accurate approach, follow these steps:

1.     Add up any mortgage or student debts you want covered.

2.     Add up your monthly expenses for the period of time you want covered.

3.     Add in any educational or other extraordinary expenses you want covered.

4.     Finally, add in any other obligations you do not want to burden your survivors with (e.g. taxes or other debts).

Going through this exercise will give you a more realistic portrayal of how much coverage you need. An additional benefit to this process is that, if your quotes end up coming in much higher than your budget, you can remove items from your list and adjust your number to arrive at a more reasonable premium payment.

How to get started

Generally, when you experience life changes, like purchasing a home, getting married, or having children, you start to accumulate many financial responsibilities that you want to protect with life insurance.
There really isn’t much of a need to buy term before these events.
However, many people choose to start whole life insurance programs at a very young age because cheap insurance is so plentiful and the policy owners can milk the cash value growth for a longer period of time.
Whatever decision you make, it can’t hurt to get started by getting a quote from several providers. You can find the most affordable life insurance (whether it’s term or whole) and then decide if it fits within your current budget.

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