Property Insurance Quote

Purchase of property requires a lot of money.  A person buying a home would either have saved for a long period of time or may have taken a loan to fund the purchase.  A person running a business would also have to make a huge investment if he is buying property for use in the business.

Property is subject to risks of many kinds.  The building may get gutted in a fire, an earthquake may cause cracks in the building or the property may be damaged in a terror attack.  Such events would cause huge losses to the property owner and he would surely want to safeguard himself against such risk.  It would be advisable for him to insure his property as soon as he buys it after obtaining a property insurance quote from various insurers.

How to get a property insurance quote?

A person who wants to take property insurance can ask an insurer for a property insurance quote.  However, one should first compare insurance rates of different insurance companies, the kind of coverage they offer and other insurance terms.  This information could be got from an insurance agent or by going online.

Online Property Insurance quote

The property owner can either visit the website of each insurer to get a property insurance quote or he can visit an insurance website which is linked to many insurers.  In the latter case, the web site user will be asked for some information regarding the property such as location, area of the building and so on.  A table with the insurance rates of different insurance companies would then be displayed.

Factors which determine a property insurance quote

Type of property

The property insurance quote will depend on whether the property being insured is residential or commercial.  The insurer would want to know the age of the building.  An older building faces more risk than a new one, so the insurance rates will be higher.  Buildings above a particular height would also be charged higher premium.

Location of property

Most insurers would consider the location of the building before giving the property insurance quote.  A higher premium will be charged for property located on the coast compared to a building situated inland.

Safety arrangements

Property owners who have taken adequate precautions for the safety of the building by equipping the building with fire extinguishers, alarm systems, sprinklers and so on will be given a lower property insurance quote as they have taken steps to reduce risk to the property.


The property insurance quote would also depend on the policy coverage chosen by the property owner.

Replacement cost coverage - Opting for replacement cost coverage means that the insurer would pay the insured the cost of replacing the damaged property.

Actual cash value coverage – The insurer would indemnify the actual value of the damaged property.

Alternative living arrangements coverage – The insured would also be compensated for the money spent on making alternative living arrangements in the case of damage to residential property.

Claims record

If the property to be insured has had many claims in the past, the property insurance quote would be higher and some insurers may even refuse insurance.  Similarly, if the insured has a track record of making many claims, the insurance premium charged will be high.


The insured can undertake to pay a part of the claim amount before the remainder of the claim is settled by the insurer.  This is called a deductible.  A high deductible will lead to a low insurance quote and vice versa.

Credit rating

Many property insurers consider the credit rating of the property owner before quoting the insurance premium.  An adverse rating would increase the insurance premium.

A property owner should not hesitate to spend on property insurance.  He has after all, spent a lot while buying the property.  Even if he finds the property insurance quote expensive, the expense would be worth it, as it would protect him from heavy losses.

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