5 BEST TIPS FOR BUYING HOME INSURANCE:
After divorce, we’re often playing catch-up to get our finances and insurance in order. We asked Senior Managing Editor, Amy Danise of Insure.com,“What are 5 top tips to consider when shopping for the best home insurance policy?”
TIP 1. COMPARISON SHOP: A lot of times people just automatically renew with the same insurer because it’s convenient. But the market is competitive, so if you’re not shopping around to see what other rates you could be getting, you really could be loosing hundreds of dollars each year.
Question: If I’m already insured and I want to get a quote from a new company does it cost me? It doesn’t cost you anything to get a quote and you have absolutely no risk in getting a quote. Asking for a quote does not go on any record or “ding” you in any way. (It’s not like applying for a loan where itdoes go on your credit record.) Any agent will be more than happy to help you out, take your information and give you a free price estimate.
Question: If they’re really going to give me a serious quote, at some point does the agent need to visit my house? Once you’ve gotten to the point where you said, “Yes, I want to buy a policy,” and they’re ready write the policy, the insurance company will send someone out to look at the property.
Question: What if the agent comes out to examine the property and I decide I don’t want to go with this insurance company? Does it cost me? No. They eat the cost of that. If you back out at the last minute you loose nothing. (Unless you’ve already paid a down payment on a policy.)
TIP 2. HOME INSURANCE DISCOUNTS: With divorce, situations change, so make sure you’re getting all your discounts. Typical discounts vary by company. Standard house insurance discounts include:
Multi-line discount (buying auto and home insurance policies from the same company)
Smoke detectors/Fire alarms installed
Burglary alarms/Dead bolt installed
Monitored Security System (i.e. paid security system) installed
Up to code/or newer home electrical, heating and plumbing systems
Earthquake retrofitting (for earthquake areas)
Wind resistant shutter (for hurricane areas)
Non-smokers live in the house
Good Credit — In short, the better your credit rating the lower your house insurance premiums.
TIP 3. RATE RISKS: items/situations, which may increase your premiums
Pool
Trampoline
Smokers living in the house
Lack of smoke detectors/alarms installed
Outdated electrical, heating and plumbing systems
Dog breed known to cause harm (varies by insurance company — i.e. Pit Bulls, Doberman Pinschers, German shepherd, Husky, Roitweiller)
Question: What if I don’t tell the insurance company about the dog?
ANSWER: If you keep it from the insurance company, and your dog bites someone, likely your claim will be denied. So the pet owner is now personally on the hook to be sued for injury, lost wages, etc. should the dog potentially injure someone.
History of claims – If you have a history of fire or theft claims, the insurance company may feel this person isn’t really running a safe household here or taking proper precautions, so the insurance company views this as a potential insurance risk.
Poor/Bad credit — In short, if you have a poor credit rating, insurance companies “statistically view poor credit as a risk” so home insurance premiums are higher.
TIP 4. ANALYZE YOUR DEDUCTIBLE: The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. Each year it is wise to review your deductible needs. If you’re experiencing financially lean times, see how much you can save by lowering your deductible, but make sure if something disastrous did happen you can afford to pay for that loss on your own.
TIP 5. CHECK YOUR POLICY ANNUALLY: You want your policy to reflect the value of your home and belongings accurately. If you review your policy every year, you can make necessary adjustments. If, for example, you just sold a valuable piece of jewelry, you won’t need the same amount of coverage. But if you added a bedroom, you’ll need to increase your coverage.