To protect your biggest investment, you probably want the best home insurance. But what exactly makes it the best? Keep reading to learn more about what to look for when choosing home insurance.
Will They Work With You?
Not all home insurance companies work with all types of homes or all types of homeowners. If you don’t meet a provider’s qualifications, how good they are for other homeowners doesn’t help you at all.
Where you are and what type of home you have plays a major role. Some insurance companies will only work with single-family houses, while others might specialize in multi-family units. If you’re in a flood zone, too far away from a fire station, or are in some other type of risky situation, you may not fit the risk profile for some insurance companies. Also, some insurance companies give more leeway for maintenance issues, such as an older or leaky roof, than others.
Finally, your individual characteristics can play a role. This can include things such as your credit score or criminal history. It can also include your history of filing insurance claims and whether you’ve maintained continuous insurance coverage.
What’s in the Policy?
Home insurance policies are very similar, but they aren’t identical even when you’re comparing coverages that have the same name. Each company may exclude specific types of damage or require special coverage, while others include those items in their basic policy. How they handle exterior fixtures such as sheds, swimming pool equipment, and detached garages can also vary. There may also be different restrictions or limits on certain personal property items, such as jewelry and electronics.
How Much Does Home Insurance Cost?
Each insurance company calculates prices slightly differently. One might have a larger increase for being farther from a fire station. Another might have a bigger discount for being in a newer home. Altogether, there can be dozens of factors that impact your home insurance rates. Because how insurance companies set rates is complicated, you might get the best price from Company A in year 1, Company B in year 2, and Company C in year 3. You can sometimes get a loyalty discount to keep you from shopping around every year, but if you trigger a major discount or increase in the pricing formulas, it can still make sense to switch.
Will Your Insurance Company Last?
You should also check to see if your insurance company has a good financial health rating and isn’t in danger of going out of business. Outstanding claims are usually government-guaranteed, but having to suddenly find a new home insurance company, especially if your special circumstances made it difficult to find one in the first place, can be a major hassle.
What Can Your Insurance Agent Do?
You probably don’t have the time or desire to dig through dozens of home insurance companies and read all of their fine print. With an independent insurance agent, you don’t have to. Insurance agents work for you and are familiar with the available options, so they can quickly help you find the coverage that’s right for you at a good price. Contact Carrigan Insurance for more information or to request home insurance quotes.