You might think that cost is the only factor to compare when looking at multiple home insurance quotes. In truth, the cost is determined by many underlying coverage factors, and those need to be examined as well to make sure you aren’t sacrificing too much to secure that low price.
Here are some of the coverage criteria you need to review before deciding on a policy.
Deductibles
A home insurance deductible is an amount you have to pay on your own to cover the cost of damages that occur during a disaster. The higher your deductible is, the more money you will need to chip in after a covered catastrophe. But you may also notice that the higher your deductible is, the lower your insurance premium is. According to Upside Insurance Agency in SC, lower rates follow higher deductibles because the insurance company realizes you’re taking on more of the risk yourself. When comparing policies, make sure you account for the financial impact each policy’s deductible will have on you.
Limits
Home insurance policies don’t offer unlimited coverage. Instead, the premium is based in part on the maximum the insurance company can expect to pay out, which is called the policy limit. As you can imagine, the lower a policy’s limit is, the lower the premium. When comparing policies, make sure you’re getting a limit that corresponds to your actual risk of loss. Also note that you may have different limits for property damage, loss of contents and liabilities. Compare each of these to ensure the right blend of protection.
Customer Happiness
Do a web search for the companies you are comparing and see what kinds of complaints each of them have. In general, you can expect almost every company to have some complaints. But you want to see who seems to have the most satisfied clients and the least complaints. You can also use a customer satisfaction rating company to measure client happiness. Doing so will ensure that you don’t end up with a company that’s all talk when it comes time to pay valid claims.
The Potential for Multi-Coverage Discounts
Many companies offer a discount if you have multiple lines of coverage with them. That can include boat, auto, and even life insurance coverage. Check to see if a company offers that and if you can bundle more policies with them and see how that might reduce your quote further. Even if you don’t have other policies to combine right now, knowing that you can get a discount in the future is a valuable perk.
Home insurance protects all those things you hold most dear. It helps keep your family financially secure and helps give you a sense of calm even as disaster strikes. Take your time when comparing policies and ensure that you get one that offers your family the protection you expect.