Comparing home insurance policies requires patience and determination. Most people would jump to the end and compare just the annual premium they are quoted by each insurance company. 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.
A good shopper will compare each amount on each policy with the help of 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.
When making standard home insurance policy comparisons, keep in mind that their prices will likely not vary substantially. Home insurance companies provide discounts as a way of encouraging encourage homeowners to protect their property, such as by setting up security cameras or fire suppression devices.
Certainly, a wise home insurance shopper will use every single discount possible. The money spend on recommended risk reduction measures will can reduce insurance premiums in the coming years by up to thousands of dollars. And by choosing the same insurer for your auto and life policies, you can be rewarded for your loyalty through multi-policy discounts.
The limits for liability insurance are raised as insurance companies are aware of litigation against the homeowner being a possibility. In the face of a major lawsuit, extra coverage can be made possible by an umbrella liability insurance policy, where the insured’s livelihood and property are protected from loss.
So what are you supposed to consider as you compare different home insurance companies?
First of all, industry reputation. Research your prospective insurers’ third-party ratings online. In the U.S., for instance, all insurance providers offering homeowner’s insurance policies are rated by AM Best Company. The ratings are determined according to the company’s performance in different areas, including claim handling. Low ratings indicate that the company has a substantial amount of customer complaints filed against it.
Another thing you should consider about an insurer is its customer service model. Central customer service gives basic support to customers, and this acceptable to some policyholders. Local agents provide help through the whole policy term, as well as recommend coverage changes when necessary.
Finally, quick response is of course crucial to every homeowner during a claim. Expert claims adjusters give correct estimates to include whatever repairs to the property are necessary.