When you’re first becoming a house owner you have no idea what kind of homeowners insurance you should get and from whom. most of the people want to get homeowners insurance from the same company they have car insurance with, but that’s not always the best option.
So how to choose the best homeowners insurance policy? Several factors go into an insurance premium in it takes some work to get the best rate. Below are seven tips for finding the best homeowners insurance policy for your needs.
The first thing you should is to compare policies from several insurance companies. Look at the different coverages, limits, deductibles, and exclusions. For example, almost no homeowners insurance policy will cover damage resulting from flooding, mold, earthquakes, infestation, general wear, landslides… The cheapest policy might not offer the best value, especially if it comes with high deductibles and subpar coverage. In other words, avoid sacrificing protection just to get a slightly lower monthly premium.
2. Try to get discounts
Most insurance companies offer discounts for homeowners insurance but they usually don’t advertise them and are not included in the initial quote you get online or by phone. Discounts also vary by insurer. For example, one insurance company can offer a discount if your home has storm shutters on all exterior windows. and the other if you have certain impact-resistant roofing on your home.
Most companies also offer a multipolicy discount, when you have multiple insurance with the same company so you should check this option too. more companies you compare more discounts that can apply to you you will find.
3. Research insurer’s financial strength
When you finally decide on an insurance company, you’ll want to know that it can meet its financial obligations — specifically, paying claims. If the company hits a rough financial patch or goes under in the middle of a claim, you might be left high and dry.
To assess financial strength you should check one of four independent agencies — A.M. Best, Fitch, Moody’s, and Standard & Poor’s as they publish financial information for mayor insurance companies. You are looking for A or B rating.
4. Be hones
Answer all the questions correctly. The application process for homeowners insurance is long, even if you do it online. You’ll be asked about several features of the home. Avoid making guesses and be as correct as possible. That way you will avoid getting incorrect quote and an inadequate policy.
5. Know how much coverage you need
If you’re buying a home, the lender typically will have requirements for coverage levels. Make sure you know what those requirements are before you start shopping around. Speak with an agent at one or more insurance companies to get an idea of what you need to have covered. For example, you’ll want to insure your home based on its replacement value, not how much you paid for it. In some cases, it might cost more than the sales price to do a complete rebuild.
6. Read reviews
Getting the cheapest policy available might not give you any peace of mind if the company is slow when it comes to processing claims. You should read online reviews and customer satisfaction surveys to see how other people are satisfied with them.
7. Improve your credit score
Having an excellent credit score can lower your premium significantly. You should regularly check your credit score and if there is something dragging it down try to fix it. The sooner you start improving your credit, the sooner you can qualify for better rates. The best homeowners insurance depends on your needs and there is no homeowners insurance that’s best for everybody. And that’s why you must try to find one that will be the best for you.