Thursday, April 9, 2020

How to Evaluate Your Homeowner's Insurance for Better Deals

While homeowner's insurance is a crucial part of owning a home, that doesn't mean you should be paying more than you have to. As with other types of insurance, it's important to evaluate your homeowner's insurance regularly to ensure you're getting the best deal. 

The process of finding these better deals, though, can be a bit tricky. To help you navigate through the red tape, here are some tips to help you evaluate your homeowner's insurance for better deals.

Consider Changes

Unless you have some type of special arrangement with your insurance company, you probably only pay your homeowner's insurance bill once a year. A lot can happen in a year, though. While most life changes won't affect your insurance rates, some will. 

Therefore, it's important that you think back through your past year to figure out if any changes that have happened could net you a lower premium.

Shop Around

Just as you should with your auto insurance every six months, you should be willing to shop around for new homeowners insurance every year. Different companies can offer different rates as they change their rate schedules, which could result in big savings for you. 

In some cases, you can use a quote aggregator that will provide multiple quotes at the same time. Just be sure to read the fine print on these sites to ensure the rate you see is actually the rate you'll receive.

Check Your Coverage

There are some insurers that try to get more money out of their customers by providing more insurance coverage than is necessary. That's why it's crucial that you comb over your homeowner's insurance policy to make sure that your coverage actually fits your needs. 

In some cases, the coverage that is provided is meant to satisfy minimum standards. Other lines of coverage, however, can be changed, saving you a nice amount of money.

Check for Discounts

Safe practices around your home make you a lower risk for insurance companies. In many cases, lower risk means lower cost when it comes to your insurance coverage. That's why it's a good idea to check with your insurance company for any discounts that they offer that you're not currently receiving. 

Discounts for security systems, smoke detectors, deadbolt locks, and other home safety devices are commonly available, so make sure your insurance company knows you have these devices in place.

While it's important to shop around to ensure you're getting the best deal, it's also important to consider the value you're receiving from your current insurer. In some cases, even if your current insurer doesn't have the very best rate, they may still offer the best value based on responsiveness, customer service, willingness to pay, and other qualities. 

Therefore, do your best to balance the need to save money with the need to be protected in the event that you face some type of covered loss.

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