Online homeowners insurance calculators help you estimating the cost you will have to pay for protecting your home. However, there are some secrets of homeowners insurance calculator you probably don’t know. I am here to share them for you.
Secret #1 – How the calculator estimates your very basic need
If you use a basic type of the tool, you will know that you are required to share only your ZIP code and your home’s footage square. The next step is to click the button and the result will be displayed on your screen. How can this happen? Actually, most online insurance providers count their insurance estimation based on a standard multiplier per square foot which ranges from $150 to $250 per square foot. Each city and state has slightly different standard. The tool works by tracking your location based on your ZIP code and multiply the square footage of your home with the standard cost of the particular location.
Secret #2 – More detailed information you share does not mean 100% accurate estimation
To make the calculation looks more accurate, some homeowners insurance calculators will ask you to share more variables such as your desired deductibles, preferred insured structures, the net value of your home contents, liability coverage, and so forth. Although the estimation seems more realistic, it may differ from the actual estimation. An actual calculation can be attained from a real home owners insurance company. However, some online homeowners insurance calculator may only go with an average cost estimation which is based on the information you have shared earlier.
Secret #3 – Your ZIP code cannot determine your home’s safety
A ZIP code indeed denotes your geographical location. Nevertheless, it cannot always accurately state the real condition of your dwelling place. For instance, your home might be susceptible to flooding while the general area of your ZIP code does not. The difference will greatly affect the amount of the premium you will have to pay. If you are serious in finding accurate information on your homeowners insurance cost, get help from an actual agent. If you prefer to do it online, find more trustworthy online insurance provider. Such online insurance company might require you to spend a few dollars for accurate calculation, but it is definitely better than a free online homeowners insurance calculator which estimates your premium cost based on your ZIP code.
Secret #4 – The homeowners insurance calculator may not be safe
One of the secrets of homeowners insurance calculator is that the more accurate the calculation you receive, the greater danger you are in. this is due to the fact that you should share sensitive information to receive accurate estimation. You may not get proper calculation by sharing your ZIP code and home’s square footage on the internet. But cyber criminal cannot get valuable information from that as well. On the other hand, when you share the value of your home inventory, contact information, social security number, and other personal details, you can be the subject of identity theft or other cyber crime. In this case, although more conventional, consulting about your home insurance cost with land-based property agent would be safer.