Comparing different home insurance policies calls for patience. Most people would jump to the end and compare just the annual premium they are quoted by each insurance company. This is a big mistake, knowing that the contents of the insurance policy form the basis for the coverage amounts. 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 smart shopper will compare each and every amount on each and every policy they’re considering with the use of a spreadsheet. For every insurance company, there should be a column, with each row having the same classification. If you make exact comparisons, you can easily spot discrepancies which explain why the premium amounts are not the same. Adding notes next to every category will remind you why a certain insurance company was eliminated from consideration.
As you compare standard home insurance policies, keep in mind that they will probably not differ in price considerably. 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 money spend on recommended risk reduction measures will can reduce insurance premiums in the coming years by up to thousands of dollars. And if you stick with one and the same provider for your life and car insurance, you can get multi-policy discounts for your loyalty.
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 exactly do you consider when comparing different home insurance providers?
First is 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 based on actual company performance, including claim handling. A company with low ratings has a considerable number of consumer complaints filed by its customers.
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 provide guidance over the entire term of the policy and provide recommendations to adjust coverage 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.