Home Insurance Articles
Things To Remember When Purchasing Home Insurance
2010-07-11
Often when shopping for home insurance, the focus is on the insurance rates. There are many factors besides cost that should play into the purchase of home insurance. This article will explain what you should consider besides the insurance rates when deciding what home insurance to purchase. First, you need to determine what coverage you need. Do you have collectibles, jewelry, or other valuables? You may need to have endorsements that add coverage for these items. These endorsements will increase your insurance rates.
It is important to consider the company's complaint index and financial rating. The strength and stability of a company is measured by its financial rating and the customer service quality and history can be determined by the complaint index. Acquiring home insurance from a company with low insurance rates but a poor financial rating or complaint index may lead to trouble should you need to file a claim. Be sure that you purchase your home insurance from a licensed agent or company. A licensed company usually belongs to a guaranty association that pays claims for members should they become insolvent. This is especially important in large scale disasters. Ask several agents and companies for quotes. Be sure to include independent agents. They can most often give you several quotes at one time because they represent multiple companies.
Be sure to answer all questions truthfully when you seek quotes on insurance rates. Inaccurate answers can result in incorrect price quotes, your application being rejected, or even policy cancellation. Check out higher deductibles in order to save on premiums. Generally speaking, you will find the higher the deductible, the lower the premium. Just be certain that you can afford the deductible in the event that you need to file a claim.
Many home insurance companies offer discounts. Be sure to ask about the discounts available. You may be required to install extra security or safety features such as deadbolts or fire extinguishers, but it will save you money in the long run as well as make your home safer. Frequently companies offer auto/home discounts as well when you insure your home and autos through the same company. Be sure to always pay for your home insurance with a personal check or money order and get a receipt for your premium payment. Never give cash to an individual agent. Be certain that you have uninterrupted coverage. This means that you should never cancel an existing policy until you have received your new policy or a written binder proving that you have coverage.
Keeping these things in mind when seeking home insurance will assure you of good insurance rates with a reputable company and adequate assistance when you file a claim.