Owning your own home is great, but it is a lot of work. Unlike when you were renting, the onus is on you to buy the necessary insurance to protect your home.
Choosing the right insurance can be tricky. You need to find a policy that offers everything you need, at a good price.
Next time you’re looking for home insurance, take into account the following.
Not all insurers are created equal
When choosing an insurer, do some research and find out how often they pay out on claims. You want the reassurance that if you do have to claim on your insurance, that you will receive the money.
If the insurer does not publish their payout numbers, or the number seems low, then you might want to look elsewhere. A low number of successful claims could mean that the company is aggressive in finding reasons not to pay out on claims. In this case, you will have to go down the root of public adjuster claims in order to receive your payout.
Don’t assume something is included
Different insurers have different terms and conditions. You might expect certain things to be included as standard in your policy, such as ‘new for old’ on broken items. Don’t assume you know what you’re covered for, check the details.
You might also find that there are a lot of things in there that you don’t need, and could potentially get the price lowered by stripping those things back out.
Shop around for a good deal
Many people are happy just to let their insurance auto-renew every year with the same insurer. After all, it’s easier. Yet if you took a little bit of time to shop around, you’d potentially save hundreds of dollars every year. Your current insurer might not be giving you their best pricing, saving all of their offers to attract new customers.
It’s not as time-consuming as you might think. There are a number of price comparison sites online that can use. There’s no need to search for each insurer separately.
Once you’ve found a good policy for a good price, you can approach your existing company to price match it or sign up with the new insurer.
There are other places to look for your insurance too. Any people use insurance brokers if they have any special requirements that aren’t catered for in standard policies.
Some mortgage lenders have special rates with particular insurers. Mortgage holders can receive a discount by using them for their home insurance. Check with your mortgage company to see if they offer this perk.
Check with your bank too. Often, they will provide a package of discounts and special rates for customers. They may have this relationship with insurers.
Cheapest isn’t always the best
When it comes to buying insurance, you aren’t looking for cheapness, you’re looking for value. Don’t be tempted to save a few dollars if it means that you aren’t insured properly should the worst happen, and your home and possessions are severely damaged or destroyed. It’s really worth the little extra time it takes to shop around.