How to choose the best home insurance

No one is immune to any kind of loss, so it's best to be prepared for anything. An excellent alternative is home insurance, since these policies cover not only the structure of your home but also the belongings inside it.

The best strategy is undoubtedly to compare several options on the market, getting quotes from at least three of the insurers you know best or that are most recommended, whether by experts or by friends and family.

To get a quote for home insurance you only need three simple pieces of information:

1. The value of the property: 

Be careful: this is not the market value, but the cost of rebuilding the property. This distinction is important because the market price can be much higher and the insurer wouldn't cover that amount in the event of an incident affecting the whole structure, so you'd be paying a very high premium for what you'd actually receive in a claim.

2. The value of the contents:

In this case you calculate the cost a little differently, since it's based on how much it would cost to buy again the items you have inside the house, including appliances, furniture, clothing and some tech items such as your computer. However, coverage of these items depends greatly on the insurer and the plan it offers you.

3. Basic property details:

All advisors will ask you for basic information about the property, including whether it's a family or owned home and its exact address.

There are some points to keep in mind when you're ready to get quotes and buy home insurance:

• The annual premium, or yearly cost of the insurance, varies depending on the plan offered. The greater the coverage, the higher the amount, but many insurers offer monthly payments. Final amounts also depend greatly on your profile as the insured.

• Remember that over time the number of items, furniture and appliances in your home will very likely grow or improve in quality, which means it's a good idea to review each year how much it would cost to replace them. That way you'll have a policy that fits your needs perfectly.

• Many plans offer additional home assistance services; check whether you really need them and will use them, because those are small amounts you can save each year.

• If you rent, it's important to review all options with the insurer, since they may offer policies that cover only the belongings you own.

• Before deciding on a specific policy, be sure to read the exclusions in detail; you wouldn't want to run into one of them when you file a claim.

• Finally, to save a bit more on insurance costs, check that the items to be covered are really the ones you consider important, since trying to insure every piece of furniture can greatly increase your policy premium.

We got a head start on quoting home insurance on the market, so we decided to put 3 of the country's leading insurers together in a small table (find it at the end of the article) so you can check some sample prices.

*For confidentiality reasons this example does not include the insurers' names, but the amounts, prices and coverage match the quotes issued exactly.

Remember that the treats you've given yourself decorating your home, and the house you worked so hard to buy, deserve the best care, and insurance covering unexpected events can give you great peace of mind.

Compare your favorite insurers and try to keep coverage amounts in line with your real needs, since it's easy to overvalue things and pay more for coverage you may never use.