Comparing home insurance policies requires patience and determination. In most cases, people will just look at the annual premium that their prospective insurers have quoted them. 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.
A good shopper will compare each amount on each policy with the help of a spreadsheet. Every insurance company will have a column, and each row will have the same category. By making exact comparisons, you can clearly see the discrepancies revealing why the premiums 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 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.
Of course, a good home insurance shopper will take advantage of every 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 stick with one and the same provider for your life and car insurance, you can get multi-policy discounts for your loyalty.
The limits for liability insurance are increased as insurers know that litigation against the policyholder can happen. 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, look into reputation. Online, research the ratings of your prospective providers. 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. Standard support is provided by a central customer service, a model accepted by some policyholders. Local agents provide help through the whole policy term, as well as recommend coverage changes when necessary.
Finally, rapid claim response after a loss is crucial to the homeowner. Experienced claims adjusters give enough estimates to include needed repairs to the home.