Many people buy a house, choose a homeowners insurance company, take out a policy and then stick with that company for years, or even decades. That can cause homeowners to overpay or to keep an insurance policy that no longer suits their needs.
You should periodically review your insurance coverage and options. In some cases, switching to a different company may be in your best interest.
You’re Paying Too Much
Insurance companies base their rates on a multitude of factors. If you request quotes for identical coverage from several carriers, you may be surprised to find that they charge a wide range of rates. You may be able to keep your current coverage and save a significant amount of money by going with a different company.
Insurers typically offer discounts to customers who bundle multiple policies. If you have your homeowners insurance through one company and your auto insurance through another, you’re probably leaving money on the table. Getting both types of coverage through a single insurer may reduce your monthly premiums by a sizable margin.
Your Coverage Doesn’t Meet Your Needs
People often assume that their homeowners insurance covers something, then learn that it doesn’t when they file a claim and it gets denied. Don’t let that happen to you. Read through your policy carefully, find out what it does and doesn’t cover, and figure out if you need to obtain additional coverage, for example, for flooding.
Circumstances change. Since you took out your homeowners insurance policy, you may have gotten married, expanded your family, made home improvements or acquired valuable belongings. You may find that your coverage for liability and replacement costs is no longer adequate. If you’ve bought one or more vehicles, you may save money by bundling your homeowners and auto insurance policies.
Your Insurance Company Provides Poor Service
Some insurers get high marks for customer service, while others are a headache to deal with. If you had to contact your homeowners insurance company for some reason and you experienced long hold times, unhelpful representatives or other problems, you may want to switch to a different company with a reputation for meeting high standards when it comes to customer service.
Review Your Homeowners Insurance Periodically
You won’t know if you have insufficient coverage or if you’re overpaying unless you review your homeowners insurance policy and rates on a regular basis. Make it a habit to do this once a year, plus any time you experience a significant life event or a change in circumstances that may affect your needs or eligibility for discounts. You can request quotes online or work with an independent agent who can discuss your needs and quickly get you quotes from multiple carriers.
