Getting the best insurance coverage is easy but involves some little effort. Here, you will have to make a comparison of the prices from different insurance companies then choose the one with the lowest price AND quality services.
Well, you ought to understand that the price is not the sole determinant factor when choosing proper homeowners insurance cover. Remember, your insurance cover will protect your home and all that’s inside it as well as other people’s property that could be damaged inside your home.
You also ought to understand that some factors that affect your home insurance rates you cannot control but in this article, I will share some tips that will help you get the best price and coverage on your home insurance.
But before that, let’s understand some of the things covered by your home insurance.
Your home insurance covers your home from something that damages it.
Terms used in homeowners insurance are HO-1, HO-2, HO-3 and etc. Most companies do not have HO-1 policies.
The two insurance policies – HO-2 and HO-3 covers your home and all that’s inside it in case of the following damages.
- Fire or lightning
- Damage caused by vehicles
- Windstorm or hail
- Damage caused by aircraft
- Falling objects and etc.
But your home insurance will not cover floods. So, you will have to find a separate policy to cover your home against floods.
In addition, earthquakes and landslides also need separate coverage as well. For that reason, you will want to ask your insurance agent for a full list of the things that they do not cover beforehand.
That said, here are the tips for getting the best insurance coverage at the best price.
Compare Multiple Companies
When buying anything, whether it’s a refrigerator or a music system for entertainment, you are always advised to shop around. That’s how you would be able to save money since different stores have different prices on their products.
The same applies when looking for the best insurance companies with the best prices.
Here, you will need to use online quote tools since they allow you to compare prices from several agents. You could also decide to call different companies to their prices so that you can make a comparison.
Raise Your Deductibles
This is the amount you incur when filling a claim before your insurer can start to pay. Raising your deductibles will help to lower your insurance rates. Lowering your deductibles will do the opposite.
Nevertheless, avoid raising your deductibles to a level you cannot afford to pay. Ideally, you may want to raise your deductibles to $1,000. That is if you were to pay $500 and that could save you up to 25%.
Avoid Submitting Multiple Claims
Your insurance company will provide coverage when you need it. However, when you submit a claim multiple times can increase your monthly premiums. In fact, your insurance company may end up terminating your cover. Therefore, always determine the long term costs together with the immediate costs and the benefits you can get before you submit a claim.
Review Your Coverage Each New Year
If you are used to the “set-and-forget” mantra, things are different here. In that case, you need to keep on reviewing your coverage every year.
For instance, when you make some changes or you have bought some additions that need to be covered. Also, sometimes some items may lose value. Here, you will want to ask for some discounts.
We hope you will be able to get the best home insurance coverage at the best price using our tips above.
Let us hear the tips you use (d) when choosing your insurance coverage in the comment section.