When it comes to securing coverage for your home, the cost and ease of shopping for coverage may feel like two completely different worlds. While homeowners insurance is one of the most affordable homeowner protection policies available, it can feel like an impenetrable market with so many companies to choose from, each offering unique policies and costs.
Finding a company that’s right for you isn’t always easy. It takes research, understanding of your needs, and a willingness to look beyond what first meets the eye. It’s not enough to just check that the company offers discounts for young drivers or oldsters you need to know where they’re located and how specific they are.
That way you won’t get stuck paying more than you should or not getting adequate coverage at all. To help you cut through the confusion, we’ve listed six tips on how to pick the right homeowner’s insurance company for your needs:
Know What You’re Looking for in a Homeowners Insurance Company
There are a lot of factors that go into the cost of homeowners insurance, but one of the most important is the company’s rating. A homeowners insurance company’s rating influences the amount of money it will collect in claims. That means you want to find a company with a high enough rating that it can pay out quickly without needing to dip into your savings.
To find out what companies in your area have the highest rating, you can look to sites like Compare Brokers or Insure.com. Once you have a clearer idea of what you’re looking for in a company, picking a few to get a better feel for their policies and costs will help you narrow down your search.
Research Companies and Earn Discounts
As you shop for homeowners insurance, you’ll find that some companies are more willing to offer discounts than others. That’s because the more willing a company is to lower its rates for customers, the less likely it is to remain in business.
To get them to offer discounts, bargain-driven research is key. Let’s say you want to know if a certain company offers discounts for young drivers. Start by combing through the company’s policies to see if there’s anything that sounds like it could apply to your situation.
If you’re a young driver, you may be able to get a discount on your premium if you know to ask for it. If you know where you’re located, whether or not you’d like to be blanketed by a specific state’s insurance laws, and how specific you’d like to be in your coverage, you can benefit from this tip.
Decide Where You’re Located and How Specific You Want to Be
This tip is closely tied to the above one, but we thought it deserved its section. While knowing what you’re looking for in a homeowners insurance company is important, it may not matter if the company you choose is completely incorrect for your needs.
That’s because it’s not just one company you’re shopping for it’s for your entire area. So not only do you need to find the best company in your price range, but you also have to make sure it’s located in the area you want to live in. To do that, you’ll want to get a better idea of what your area has to offer.
Know Who’s Offering New Programs or Discounts in Your Area
Some of the things you can find when you compare homeowners insurance policies include discounts for living in a flood-prone area or those that offer discounts for certain types of cars. Depending on where you live, some of these factors may not be available in your area.
That means you can also use them to your advantage. If you know where you’re located, your specific coverage needs, and which companies have the features you’re looking for, you can see if there’s a better option. For example, a company that’s covering your state may not offer a blanket coverage policy, but if you want to be protected from a specific risk, you may be better off switching to a company that does.
Ask if the Company Has a Rating With an Influencing Organization
As you shop for coverage, you’ll want to make sure the company you decide on has a good enough rating to cover your claims.
One easy way to do this is to check if the company has a good enough rating with an influencer like the Better Business Bureau (BBB). What you can do is search the company’s name and then select “BBB report” from the drop-down menu.
The BBB will then pull up the company’s rating with the BBB and let you know if it’s been given a positive or negative rating. If the company has a low score, it may be a sign that it’s not as financially stable as you’d like.
Don’t Forget to Check with Your Neighbors Before Settling on a Company
A final tip that can help you find the best homeowners insurance company for your needs is to make sure you ask your neighbors for recommendations. While it can be frustrating to shop for a policy that has a high premium or doesn’t offer the discounts you need, it’s important to remember that your neighbors may have had a different experience.
If you shop around, you’ll find that certain companies have high premiums in certain areas or offer minimal coverage. Others have a wide range of customers, including those who fall into a specific age group or need a specific type of coverage. While that may not be the case in your neighborhood, it may be in another.
By asking around, you can find out if certain companies offer better coverage in your area. With that information, you can make an informed decision before choosing a company that may not be as appropriate for your needs.
Wrapping Up: Is Homeowners Insurance Worth the Hassle?
Homeowner’s insurance can feel like a costly hassle, but with the right research and a willingness to look past what first meets the eye, it doesn’t have to be. These six tips will help you find the best homeowners insurance company for your needs and get the coverage you need at a price you can afford.