How To Shop And Save Money On Home Insurance
Finding the right homeowner insurance policy can be a challenge. Insurance can be expensive, but it is still a necessity. However, if you’re willing to shop around, you may be able to save some money on your premiums.
Before committing to any one policy (many new homeowners have a tendency of following the recommendations of real estate agents, friends, family members, or banks without digging a little deeper), it’s worth doing some comparison shopping. In fact, according to Wall Street Journal, 38% of insurance buyers never do any research before buying a policy, and 40% of people aren’t even confident that they have the right coverage.
Here are some thoughts on how to shop and save money on home insurance.
Consider How Much Coverage You Need
How much coverage do you actually need? This is an important question to ask as you are looking into the various insurance programs that are available to you.
According to the Insurance Information Institute, there are basically four items your insurance needs to cover. They are:
- The structure of your home.
- Your personal belongings.
- The cost of additional living expenses if your home is damaged and you end up having to live in another location while repair work is being done.
- Your liability to others.
With some policies, you may need to buy insurance to cover the entire sum of your mortgage loan.
If you end up needing more coverage, then your premiums could end up being higher. Conversely, if you determine that you do not require as much coverage, you could save on unnecessary costs.
Either way, it’s good to know what a policy covers in addition to what it doesn’t cover.
Look Into Discounts
Because more insurance companies are beginning to segment their databases and are fine-tuning their rates based on different categories of customers, it’s worth looking into whether or not it’s possible to obtain discounts from your policy provider.
These discounts may not be readily apparent, and can sometimes be a little unusual. Updating your roofing or wiring, living in a gated community, and owning a security system or a water-leak detection system are but a few examples.
Because insurers are using more subjective means to determine premiums, it’s worth taking advantage of discounts when and where you can.
Shop Around For A Dependable Company
It seems obvious that you should find a provider that offers quality service. There are plenty of companies out there promising low rates, but if they can’t keep up with communication requests or are loose in how they handle claims, they can’t be trusted and depended upon.
So, how do you find a reliable insurance provider? AmFam recommends taking the following two steps to determine the dependability of a company:
- Check your state’s insurance department to ensure that the provider is licensed.
- Use A.M. Best to look into the financial strength of the business.
Additionally, you can ask around. See if any of your friends or family members are happy with their current policies. Look through phone directories, or visit the National Association of Insurance Commissioners to find out how to find a good insurer within your state. Look at consumer guides, talk to insurance companies and agents, or take advantage of online insurance quote services.
Keep in mind that price alone should not determine your selection. Make sure the company you’re looking to work with can also provide you with quality service.
Conclusion
There has never been a better time to shop around and look into the various insurance options available to you. With the segmentation of customer databases and the changing nature of subjective discounts, it’s worth taking the time to find a policy that meets your needs and is also affordable. If you need a free quote, we have an excellent insurance agent who is competitive and very customer oriented click here to receive a no obligation quote.
