Tips to Choose the Best Homeowners Insurance Policy
If you are like most people, your home is the largest asset you own. Therefore, taking insurance to cover your home against unexpected losses is essential. Several insurance companies offer homeowners insurance. So, choosing a suitable homeowners insurance policy may seem daunting.
How do you look beyond the benefits many insurance companies claim to offer to choose the best homeowners insurance policy? The tips below can help you make the right choice.
Consider Local Insurance Companies
Local insurance companies are often more familiar with the insurance risks in your area. They also know the laws that govern insurance in your state. Thus, they can offer a comprehensive insurance policy that covers you against all the relevant risks in your area.
Know Your Coverage Options
The standard homeowners insurance policy insurance companies offer provides four types of coverage:
- Coverage for structural damage
- Coverage for personal belongings
- Coverage against personal liability
- Coverage for additional living expenses due to damage
The items that each type of coverage caters to may vary among insurance companies. Therefore, when talking to insurance providers, ask what you get for each level of coverage.
When you know your coverage options, you can choose a policy that caters to all your needs. For instance, your homeowners insurance policy should provide coverage against storm damage if you live in a storm-prone area. If you are lucky, you may even enjoy unique coverage options from your insurance provider.
Compare Rates by Different Companies
Premium rates are an essential consideration when choosing an insurance company. After all, you do not want to end up with a policy you will struggle to pay for. Compare premium rates from several insurance companies to ensure you pay a fair price for your policy.
While affordability is vital to your insurance buying decision, it's not the only thing that matters. Even if you go for an insurance policy with lower rates, ensure the policy offers adequate coverage.
Ask About the Claims Process and Payment Terms
Spending months following up on your insurance claim after a loss would be unfortunate. So before purchasing an insurance policy, inquire about the company's claims-filing process. Know what you need to prove a claim after a loss and how long it takes the company to disburse claim payments.
Some insurance companies disburse claims on a replacement value basis, while others pay actual cash value. On a replacement value basis, you get the money necessary to pay for damages for an item at its current cost.
In contrast, insurance providers who use a cash value basis consider the initial value of your house, minus depreciation, when determining the amount to disburse to pay for damages. Ensure that your insurance provider is flexible and lets you decide which claims basis works for you.
Check for Discounts
As you examine different insurance policies, ask the insurance agents you interview if they offer discounts. Learn about some discounts insurance companies offer.
Disaster Preparedness Discounts
If you live in a disaster-prone area, any measures you take to protect your home from damage could earn you a discount.
New Home Discounts
Newly built homes are eligible for discounts because their systems, like plumbing and wiring, are less likely to fail.
Safety and Security Discounts
When your home has safety and security features like burglar alarms, impact-resistant windows, and smoke detectors, your home offers less risk to the insurance company. Therefore, they may give you a discount on your premiums.
The Policy Center Inc. is your best bet if you want an insurance company that offers you value and affordability. Contact us today for more information on our homeowners insurance policy.
