How to Select Homeowner's Insurance
- 1). Seek recommendations from your friends and acquaintances. Ask them for the name of their insurance company. Also contact the insurance department in your state for a list of companies or look through the Yellow Pages and newspaper ads. If you have automobile insurance, check with your own agent to see if the company has homeowner's insurance.
- 2). Research each of the insurance companies you are considering to find out how reliable they are. Your state insurance department or the National Association of Insurance Commissioners can tell you if there are any complaints against any of the companies. You want to know how they handle claims from policyholders. Find out how financially stable the companies are by checking their ratings from A.M. Best and Standard & Poor and reading consumer magazines, the Insurance Information Institute advises.
- 3). Cull your list of insurers down to three companies.
- 4). Contact the insurance agents to begin getting quotes. Describe your home accurately, giving them the age of the home, its square footage, the age and composition of the roof, details about the electrical and plumbing system and the value of your possessions. Ask them for a quote on replacement value coverage in the event of a total loss.
- 5). Get a quote on coverage beyond the standard policy. A standard homeowner's insurance policy does not cover earthquakes, floods or certain high-value possessions, such as coin collections or jewelry. You can cover high-value possessions with a rider on your policy, but you must tell the agent about those items. Even if you do not live in a flood zone, you might consider insuring your home and possessions against flooding, just in case. Your agent can sell you separate flood or earthquake insurance policies at the same time you purchase your basic homeowner's policy.
- 6). Ask your insurance agent if the company offers any discounts. Many discounts can save you money on your premiums. Examples of discounts some insurance companies offer include improving security at your home or improving its ability to withstand natural disasters, such as earthquakes, hurricanes and windstorms. Sometimes you can get a discount if you have more than one policy with an insurance company, such as auto and homeowner's.
- 7). Increase your deductible, rather than reducing coverage, if the premiums are more than you want to spend. The lowest price is not always the best value. As you compare prices, keep in mind how the companies compare in terms of complaints, handling claims, financial stability and anything else you discovered as you researched the companies.
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