Homeowners Insurance products have many components. Read on to learn more.
- How can Comparing Quotes Help Homeowners Save Money on Expensive Endorsements Like Flood or Earthquake Insurance?
For many people, their home is the biggest purchase they will ever make. It is critically important, then, to protect this investment with proper insurance coverage. But homeowners coverage can get expensive quickly, especially as you start to add more coverage through endorsements.
A homeowner can add endorsements, such as earthquake and flood, to their policy for an additional charge. Depending on where you live, your mortgage or finance company may require these coverages. In other cases, they may be a best practice that your agent or realtor recommends. Be sure you understand what is covered by these endorsements to make an informed decision to compare rates and carriers. Some insurance companies may have more exclusions that make it harder to use your coverage, for example.
Since these endorsements can quickly grow your premium, it is essential to shop around and compare quotes from different insurance companies. You may find a significant difference in rates from carrier to carrier. There are several reasons for this discrepancy – you may fit a particular carrier’s risk profile better than another, or one carrier may wish to grow their policies in force in your area, making the rate more attractive. But if you do not compare quotes, you will never know.
- Is it Possible and Wise for a Homeowner to Compare Insurance Companies Based on More Than Just Cost, Such as the Percentage of Denied Claims?
It is a good idea to compare insurance companies based on more than just the lowest cost provider. The low-cost option may end up being more expensive over time if you have a claim and your carrier does not cover as much as you expected. AM Best rates insurance companies to show their financial strength – this may be important if you file a claim. Knowing your carrier is solvent and has the financial backing to pay your claim can be an essential consideration.
You may also be interested in the percentage of claims paid versus denied by the carrier. A carrier that has a higher rate of denied claims may also deny yours. You want to ensure that it will be easy and fair to do business with your insurance company should you need to file a claim.
Many times, the way an insurance company handles claims is a differentiator. Some carriers rank higher on customer satisfaction surveys, for example. Customer satisfaction surveys may indicate a company that will be pleasant and easy to work with if you file a claim. While insurance is often commoditized, the lowest priced option is not always the best choice.
- What Advice Would you Give for First-Time Buyers Looking for Homeowners Insurance?
Do not be afraid to ask questions and compare your options. Shop around and take your time to understand your needs and coverage options. You do not need to go with the first offer you receive from an insurance company.
Insurance is a very specialized product with many nuances. It is highly regulated, which means governing agencies design rules to protect your rights as an insurance buyer. Talking to the experts at Fusco & Orsini Insurance Services can help you understand your rights.
In California, Homeowners Insurance can be especially challenging to navigate. Catastrophic wildfires in recent years have caused some carriers to stop writing coverage in the state. Other insurance companies have kept their policies in force, but their rates have significantly increased. Higher premiums can make securing affordable homeowners coverage difficult for first-time homebuyers.
Your new home and your situation will determine the right Homeowners Insurance coverage purchase. The right policy depends on your home location, whether it is one family or multi-family, and the construction type.
Working with an experienced insurance agent is a best practice for first-time home buyers.
- How do a State’s Regulations and Laws Impact the Amount or Type of Coverage a Homeowner Should buy?
Knowing how much coverage or what kind of coverage to purchase can be challenging. There are many considerations and decisions to make while deciding on a coverage. State laws and regulations may affect your choices, too.
In some areas, flood or earthquake coverage is mandatory. Regulatory agencies also want to ensure homeowners are protected if they file a claim, so you may be required to maintain a certain amount of insurance coverage compared to your home’s value. Some mortgage companies will require you to carry a certain amount of coverage and may dictate your deductible, too. They want to protect their investment in your home.
If your home is a multi-family home with rental units, you will have different insurance needs than a single-family homeowner. Buying a condo also brings new insurance considerations. State regulations will help guide how much coverage and type to purchase, and your agent will help you understand these regulations.
Regulations and laws change frequently, and it can be challenging to keep up with changing trends. Talking with insurance experts can help protect your home investment and save you time deciding how much and what type of homeowner coverage to purchase.
How do I Learn More?
Now that you know more about Homeowners Insurance, you can contact Fusco & Orsini Insurance Services experts for more information. Our licensed professionals will be happy to answer any questions you have.
External Links:
- https://www.iii.org/press-release/californias-seismic-risks-remain-50-years-after-sylmar-quake-020821
- http://www3.ambest.com/pc/
- http://www.insurance.ca.gov/01-consumers/105-type/5-residential/index.cfm
