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 can be a drastic mistake as coverage amounts are mainly dependent on the insurance policy’s components. A sizable reduction in one coverage amount can decrease the premium considerably. The problem will come up when a claim is not accepted because of inadequate coverage on the policy.
The wise shopper compares all amounts on all policies using certain tools, such as a spreadsheet. For every insurance company, there should be a column, with each row having the same classification. When you make exact comparisons, it will be easier for you to see discrepancies explaining why the premium amounts differ. Adding notes next to every category will remind you why a certain insurance company was eliminated from consideration.
When making standard home insurance policy comparisons, keep in mind that their prices will likely not vary substantially. 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 limits for liability insurance are raised as insurance companies are aware of litigation against the homeowner being a possibility. In the event of a major lawsuit, additional coverage can be provided through an umbrella liability insurance policy, where the property and livelihood of the insured are guarded against loss.
So what should you consider when making comparisons among different providers?
First is reputation. Look up your prospective providers’ third-party ratings online. In the U.S., for example, all insurance companies that underwrite homeowner’s policies are rated by AM Best Company. The ratings are based on actual company performance, including claim handling. Low ratings indicate that the company has a substantial amount of customer complaints filed against it.
Also look into an insurer’s customer service model. Standard support is provided by a central customer service, a model accepted by some policyholders. Local agents give guidance through the entire term of the policy and give recommendations for coverage adjustments when needed.
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.