Homeowner's insurance policies are not all the same, and the type of coverage you need depends on several factors, including your financial budget and how the policy pays for losses. In general, seeking out the lowest cost insurance you can find will result in receiving a minimum payout on claims, but even a good policy has options that can make it more or less effective or expensive.
The home is usually the most expensive item a family owns, and deserves to be protected as well as possible. You should still look for any discounts or savings you can find, but picking a policy solely on the cost of the premiums is never going to give you the best protection. For example, you can install a home security system to reduce the costs without affecting the actual coverage being paid for.
You can find good but inexpensive homeowners insurance by shopping online. This website is a good example of why you can save money buying insurance online, because it is a brokerage that provides policies through multiple insurers instead of offering a policies through a single company. Take a few minutes to fill out the form for a free online insurance quote, and you will be well on the way to finding affordable home coverage.
There are two major types of coverage to choose from. The first is known as Actual Cash Value coverage, and while it is less expensive than the other type, it only pays out a depreciated value for damages or losses. The second type is called Full Replacement Value, and will pay to repair or replace losses at the current market value regardless of the age or depreciation. Some companies also offer an extended Full Replacement Value, which is the most comprehensive-- and most expensive-- type of home coverage available. If money is the primary concern, ACV coverage will work but has more out of pocket costs associated with it.