Homeowners Insureance

Homeowners Insurance Rates - How to Get The Cheapest   by Brian Stevens

Thanks to the increasing numbers of hurricanes, storms, floods, tornadoes, and earthquakes in recent years, home insurance rates have gone through the roof. Here’s how to get cheap homeowners insurance rates with a top company.

Decide How Much Insurance You Need

Home insurance covers your home, your personal property, and protects you from liability lawsuits.

To figure out how much coverage you need to protect your home, ask a local builder or real estate agent what it would cost to replace your home in today’s market. Use that amount for your home insurance coverage.

To figure out how much coverage you need to protect your personal possessions, take an inventory of everything you own - furniture, appliances, stereos, TVs, sports equipment, tools, clothing, jewelry, linens, kitchen utensils, books, CDs, etc. Use the total value as the amount of your personal property coverage.

To figure how much liability insurance you need to protect yourself from a lawsuit if someone is injured on your property, add up all your assets - checking accounts, savings accounts, certificates of deposit, stocks, bonds, etc. - and use the total as the least amount of liability coverage you should have. Most people get $100,000 to $300,000 worth of liability insurance.

Go Shopping for Cheap Homeowners Insurance Rates

Once you know how much insurance coverage you need, go to an insurance comparison website to get rate quotes from different insurance companies. To get your quotes you’ll need to fill out a simple form with your insurance information and the amount of insurance coverage you want.

In order to get the cheapest rate, choose the highest deductible you can afford, and request all the discounts you’re eligible for as you fill out the form. By raising your deductible from $250 to $1,000 you can save up to 25% on your insurance, and by getting all the discounts you’re eligible for, you can save another !0% to 30%.

Most insurance comparison websites only deal with A-rated companies, so you know you’ll be getting quotes from reputable companies. The best comparison sites offer a chat feature so you can talk online with an insurance expert who will answer all your home insurance questions and help you get the best homeowners insurance rate.

Changing Insurance Companies   by Lee Romanov

Don’t hesitate moving to another insurance company for a better rate, there is NO risk in switching companies to save money. That’s why insurance companies lower their rates, to attract new business, so don’t be afraid to take advantage of it.

What if I have an accident? Insurance companies have to file their conditions for non-renewal or cancellation with the government. For example, if their policy is “3 tickets and 1 at-fault accident”, it doesn’t matter if you’ve been with your insurance company for 20 years or 20 minutes. If you fit into this category, you’re out.

Tip: When shopping for a new insurance company ask if they have “Claims Protection.” This protects you against your first accident. You should also ask about the company’s cancellation policy in regards to multiple tickets or accidents.

Quoted one price, billed another: The only way that your rate should change after you’ve been quoted is if you failed to report a previous accident or ticket. So make sure you get your quote emailed, mailed or faxed to you before you proceed.

On renewal, will my rate skyrocket? Unlikely. Most rate increases occur because your insurance rep no longer deals with the insurance company they placed you with the previous year. They now have to place you with another insurance company that has higher rates. This being the case, all you need to do is call the original insurance company for the name of another brokerage that they deal with and get them to renew your insurance policy. But always confirm you’re with the best rated insurance company by doing a quote online.

I have renewal discounts: Renewal discounts are meaningless if another insurance company has a better rate for you. For example, if you have a home and auto discount, it’s the bottom line that counts. The new insurance company, with a better rate, will have home and auto discounts too, which means a better rate for you.

But I’m a “Nine-Star Driver!” So what. You might be a nine-star driver paying a high rate with one company, or a six-star driver paying a low rate with another company. The bottom line is what really matters.

Is there a penalty if I cancel my current insurance early? If you cancel your insurance policy midterm, the insurance company will usually charge you with a penalty fee. But keep in mind that often times, the savings you’ll receive with your new insurance company will more than offset any cancellation penalties. If you cancel your policy during its renewal period, there is no penalty as long as you have notified the company “in writing” in time to cancel your policy.

I’ve been with my insurance company for long time: “Loyalty” discounts are easily overcome with a better rate from a new insurance company. And if the reason you are not changing is because your parents have dealt with this company forever, then it’s time to cut the cord.

The insurance company with the best rates for your parents does not necessarily have the best rate for you.

My insurance rep says I have the best rate: You may have the best rate available to your rep, as their brokerage can’t quote you from companies they don’t represent. There are a number of insurance companies that offer lower rates and may be better suited for you. Find out for sure by going online to sites like InsuranceHotline.com.