How to Compare Home Insurance Quotes to Save Money
The best way to protect your home is by having a good home insurance policy (the bank usually requires it if you're getting a mortgage anyway). When shopping for home owner insurance, it is a good idea to compare rates and get quotes from 3 to 4 companies. There are many facets to consider though and the lowest price does not always mean the best deal.
You may have found websites that let you compare home insurance quotes. Is this the best way to go? Are you going to get the best deals this way? Or are the websites affiliated with the agencies they display and just trying to get a cut?
Insurance legalese can be as clear as mud sometimes but doing some comparison shopping can at least make you an educated consumer. In the long run, your best avenue is likely to be an independent agent. The independent agent is well versed in insurance know-how and can help you obtain competitive quotes from several insurers. Working with a professional gives you the advantage of knowing that there will be no gaps in your coverage in the event of a loss. However, even if you decide that it is worth your while to go with an agent rather than web-based self discovery, you will still want to learn as much as you can so that you know what you are getting into.
Fortunately the insurance industry is well regulated and as a result many features found in the basic policy are standardized. This makes comparison shopping easier. However there are still fine lines that need to be scrutinized carefully. Make sure that you are comparing exactly the same coverage offered by different insurers. More and more people are shopping for insurance information online, because comparison shopping is the best way to save and to find the policy that is best for you.
Needless to say you want to look at the coverage that each policy offers and at the bottom line cost. However, make sure that the companies that you are interested in have good customer service and claims service reputations. You will probably agree that by the time you finish reading about things like exclusions, home value, what
deductible to select etc. that your eyes are crossing and you are willing to sign just about anything. Home owner insurance isn’t something that you enter into lightly, so take your time and check with your state’s department of insurance to determine whether each company that you are looking at has a good reputation in the industry.
What do you look at? Consider the advantage and disadvantage of high versus low deductibles and look for discounts for things like beefing up home security. Your insurance company should be willing to offer ideas for things that you can do that will give you a lower rate.
Look into any limits imposed on your coverage. Is the policy offering replacement value coverage or depreciation value coverage, and what is the estimated value of your home to start with? Make sure that the value of your home is viewed the same by each company that you considering. Cheap insurance might actually cost you more money in the long run. What is an exclusion clause? Exclusion is something that is not covered and could mean anything from mechanical breakdowns to termites. It is something that might not be readily noticed unless you can look at the individual policies side by side (some insurance companies will not give out copies of their policies so you need to ask).
Educate yourself and learn how to save money on an insurance policy. Study as many resources as possible and be aware of things that you can do to keep your costs down. Basically, in addition to the price of your home policy package you are looking at the quality of service, the speed in settling claims and the differences in coverage.
Source: The Complete Book of Insurance