Homeowners Insurance Company Review
The largest and most important investment that most people make in their lifetime is a home. Homes are not only a place that provides safety and shelter; they usually are good investments and appreciate in value over time. Homeowner’s insurance is also an investment that protects that major investment. Homeowner’s insurance is just as important as heath insurance. You made not think you need it, until the day comes when you do and then you never question that decision again.
It seems there are many home owner insurance companies
as there are homes, so it is important to do some research on the insurance company and understand the type of home owner’s insurance policies they offer. Most lenders require that the home be insured for at the value of the home, homeowner policies are designed to cover certain situations that could destroy or partially damage the residence, but they don’t cover every event that causes damage to the structure of the home.
Understand the Factors that Determine Your Rates
Homeowner insurance rates are based on several different factors. The age and condition of the home, its location and the replacement cost top the list. Fire protection and claim history, as well as construction materials and credit history also play a role in every home policy. When reviewing home owner insurance companies remember that just the value of home should be covered, not the land and choose as high of a deductible as you think you can afford, that will lower the annual premium. Fire and burglar alarms, sprinkler systems and fire extinguishers also help lower the premium.
The Internet is a great place to review different homeowner insurance companies. There are almost too many to count, so the best approach is to pick ten and start with them. There are several things to look for when choosing an insurance company. Most homeowners are concerned with value first. The coverage that the insurance company provides should be a value in terms of the type of claims covered without restrictions. Insurance companies are notorious for putting limits on certain events that can damage a home. Let’s say a tree is hit by lightening and falls on the house. The damage to the house may be covered, but the removal of the tree may not be covered by the policy.
The second point to consider when reviewing a home owner insurance company is service. When a home has been severely damaged or even destroyed, it’s important to get a representative of the company on the scene as quickly as possible. Timing is important when a claim is filed for several reasons. The main reason is everyone wants the damaged fixed immediately and if the company is not structured to handle claims quickly, they should be put at the bottom of the list.
The third point in the review should be the financial health of the insurance company. If an insurance company has been experiencing an overload of claims due to natural disasters or other reasons, they may not offer the best coverage. They want to recoup their losses. Insurance companies who have paid out an exceptional amount of claims will raise rates on new policies and will increase rates on existing policies if they feel they can.
Another factor to include in your review is what you want the policy to cover. Flood insurance as well as tornado and hurricane damage may not be covered in the main policy; companies will add these clauses if you think you need them, but you pay for them. Additional coverage depends on the home’s location and the weather patterns in those areas. We live in a world with changing weather patterns, so it’s important to find a company that has adequate coverage for unusual weather damage.
Reviewing homeowners insurance
companies is a great idea and it will save you money if you invest some time and focus on your insurance needs. Some policies contain clauses that are unnecessary, so it is important to learn how to read and understand the terms before the policy is signed. Afterthoughts in the homeowner insurance business can be expensive as well as life changing. In order to get the best homeowner insurance rates and coverage enter your zip code at the top of the website. You’ll get free homeowner comparison quotes.
List of the Top 10 Homeowners Insurance Companies