5 Questions to Ask Before You Switch Your Home Insurance
Home insurance can be one of the most important aspects of owning a home. So many things can happen throughout the day that it may be hard to prepare for them all, especially if you live in an area prone to natural disasters. And, of course, you cannot forget about all the criminals and activists who love to damage property.
If you are finding yourself needing to switch home insurance companies, you will want to ensure that you get the best bang for your buck. In other words, take the time to check around and see what the different insurance providers have to offer. It does not mean you have to switch companies to get a better policy, but it never hurts to look.
Choosing a home and contents policy is not as simple as getting an offer and paying the bill. You must take your time during the process and ask yourself these 5 questions before choosing a new policy.
- Why do you need to switch your home insurance?
- What are your absolute requirements with your home and contents policy?
- How can you compare the insurance carriers in your area?
- What will it cost to make a switch?
- Have you thought ahead to future needs?
Why Do You Need To Switch Your Home Insurance?
You need to understand exactly why you want to switch your home insurance. If it is to save money, you can always make some changes to your current policy or ask an agent for a discount of some kind (such as a no-claims discount). If you hate your current insurance provider, you may as well skip that part and start looking for a better one.
It is not always all about money or customer service, so look deep into your soul and figure out why you need to switch your home and contents insurance. This will be the driving point that you need to follow through the entire process.
What Are Your Absolute Requirements With Your Home And Contents Policy?
Before you start applying for a new policy, you must know the requirements that you have. The only proper way to do that is to have a home inspection that will offer you a current value. Do not forget to include the outbuildings because you will want your policy to cover them all. You need to make sure that the policy covers the cost of your home and then some just to allow for the fluctuations in the market.
Your contents insurance will be based upon the same thing. You should already have an itemized list of everything that you own that you want to be covered on the policy. The best way to do this is to keep track of things as you acquire them, but that is not always possible. The itemized list should have a description, a UPC number, the cost when you bought it, and the value of it today. That way, you will be able to get coverage that includes it all.
How Can You Compare The Insurance Carriers In Your Area?
There are many ways in which you can compare service providers in your area, but the one that makes the most sense is to use an online platform, such as the one found at iSelect home and contents insurance site. They will take some information and circulate it through their internal databases of partner sites. What they come up with for you will be numerous offers for home insurance policies, saving you time and money trying to search them out on your own.
All you have to do then is go through the policy offers and pick out a couple that looks promising. Do not ever choose an insurance policy simply because the cost is the lowest, because most of the time, it will not be the best option. You need to dig into the details and find ones that can cover what you have, and then pick the one that has the lowest cost. But even then, be careful not to fall into the marketing ploy of getting a discount for a few months before the policy skyrockets in price.
What Will It Cost To Make A Switch?
Switching will not cost you any extra fees if you are nearing the end of your current home and contents insurance policy. However, if you are in the middle of a contract but still require a switch, the company may charge you for the remainder of the contract cost, plus early closing fees.
But then again, if you talk to your insurance agent and explain the situation, such as moving to a new area, the fees tacked on will often be minor, if any at all.
Have You Thought Ahead To Future Needs?
One thing that most people getting insurance do not consider is the future. If you are planning to remodel in the spring, you will want to get an insurance plan that covers not only the current value of your home but the overall amount after the construction work is done.
Many areas within the home, such as the kitchen and bathroom, can substantially increase your home’s value. Always look into the near future to ensure you do not get stuck with an insurance policy that falls short.
Home and contents insurance is not a fun subject for many people, but it is a necessary aspect of owning a home. You do not want to live through a natural disaster just to find out that your home is a total loss, and you chose not to obtain an insurance policy.
Many things can happen in any area, so going without a home insurance policy should not even be a consideration. Get a good policy that covers everything you own, and live by the old saying, “it is better to have it and not need it than it is to need it and not have it.”