Question
What is the name of your state? CT
Hello All:
We're closing June 9 on a CT home with a rental cottage on the property. We have three homeowner's quotes from different insurers. Two are high, due to the fact that they consider it a property with two houses. The third considers the property to be "owner occupied" since we will be living in the main house, and, as such, has given us a rate that seems too good to be true. I'm wondering what guidelines the companies use to come to their individual conclusions. Is it up to the individual agency to determine if the property is owner occupied (or not) as we are being told, or a matter of law?
TIA!
NF
Answer
The ins. companies set their own criteria on which they base their rates. When considering the cost for homeowner ins., they consider age of residence, what it is made of (ie brick), location, distance from fire station, size of residence (& any "attachments"), etc. There will be a difference in rates among various ins. companies offering homeowner coverage just as there is a difference in rates among car ins. companies. People just need to shop around when needing ins. & also your agt. can many times help determine the coverage needed for your individual needs.
Answer
It's really quite unbelievable the price difference there can be in quotes for the same coverage from different companies.
Answer
It's really quite unbelievable the price difference there can be in quotes for the same coverage from different companies.
It shouldn't be too unbelievable. When you shop at WalMart vs. convenience store vs. drug store, you can purchase the exact same product, but the prices are different. The same is true for homeowner's insurance.
Make sure that the quotes cover the same thing. Are the deductibles the same? The amount of dwelling coverage (actual cash value vs. replacement cost), the amount of liability coverage, etc.