Tenacity and patience are a must when comparing home insurance policies. Usually, people would simply jump to the end and simply compare the annual premium that each insurance company has quoted them. This is a huge mistake, considering that components within the insurance policy determine the coverage amounts. A considerable reduction in just one coverage amount can lower the premium substantially. The problem will surface when a claim is rejected because of insufficient coverage under the policy.
The wise shopper compares all amounts on all policies using certain tools, such as a spreadsheet. Each insurance company should be assigned a column, each row holding the same classification. If you make exact comparisons, you can easily spot discrepancies which explain why the premium amounts are not the same. Writing notes next to each of the categories will keep you reminded as to why you excluded a specific insurer from consideration.
While comparing basic home insurance policies, expect their prices not to vary significantly. Home insurers give out discounts to encourage homeowners to keep their property low-risk – for example, by installing fire suppression devices or CCTV cameras.
Certainly, a wise home insurance shopper will use every single discount possible. The cash you spend to install the recommended risk-mitigating measures can save you up to thousands in the form of reduced premiums. And if you stay with the same company, your loyalty will be rewarded through multi-policy discounts on your life and auto insurance policies.
The liability insurance limits are increased since insurance providers know it’s possible for the homeowner to face litigation against them. Umbrella liability insurance policies are meant to provide additional coverage in the event of a major lawsuit, where the policyholder’s livelihood and property are given protection from loss.
So what are you supposed to consider as you compare different home insurance companies?
First of all, industry reputation. Look up your prospective providers’ third-party ratings online. For example, in the U.S. AM Best Company provides third-party ratings for all insurance companies offering homeowner’s policies. The ratings are based on actual company performance, including claim handling. A company with low ratings has a considerable number of consumer complaints filed by its customers.
You should also consider the insurer’s customer service model. Central customer service gives basic support to customers, and this acceptable to some policyholders. Local agents give guidance through the entire term of the policy and give recommendations for coverage adjustments when needed.
Finally, rapid claim response after a loss is crucial to the homeowner. Experienced claims adjusters provide accurate estimates to cover important repairs to the property.