Switching your home insurance coverage may be a good idea when trying to get a better deal or better benefits from that coverage. However, there are a few things that you need to ask yourself before doing so.
We will get to that in a minute, but first, there is something important that you need to do. You need to get an up-to-date budget put together so you know exactly how much you can afford to spend on insurance.
You may only want to get the bare minimum if you are pinching pennies. If you have a substantial amount of items in the house that are worth serious money, you may want the best amounts you can get. Either way, you need to sit down and ask yourself these 5 questions before you switch your home insurance coverage.
1. Why Do You Need To Switch Your Home Insurance? There are many different reasons why you may want to switch your home insurance. It is entirely up to you to figure it out, but once you do, it is vital that you sit down and think it through. If you are switching just to save money, ask your current provider about discounts and no-claim bonuses. You may not have to change the policy; all you have to do is ask.
2. What Types Of Coverage Do You Need, And What Levels Do You Need Them? You cannot make an informed decision if you do not know the different types of home insurance available. Of course, you can go off what the agent says and accept their recommendations, but it is always better to have a working knowledge just to know what is right for you and what isn’t. It is similar to the concept of buying car insurance; you always want the best for your specific needs, not a generic policy that would not cover what you need it to cover.
- Building And Contents Insurance – This is one of the best choices because it will combine coverage for your home and outbuildings and the contents within those buildings. If you have some extra expensive items in your home, this coverage may not cover it because it will have a limit written into it. The best thing to do is get a separate policy that covers that item, or those items, so you are covered on all corners.
- Building Insurance – This policy would only cover the damages to the buildings. It is essential to read through the entire policy to ensure that it covers common natural disasters in your area.
- Contents Insurance – This is the only policy you need when you are renting, but it is also a policy that you can add to the homeowners’ policy that you already have. This is not what you need if you are trying to get expensive items covered because it has a high-end limit, so always discuss with your agent to find out which policy you need to add on.
- Landlord Insurance – If you own buildings in which the interior areas are rented or leased to others, you will need this policy, along with building insurance. You know how hard people are on things that are not theirs, which is why this policy is an option. It will cover the costs of repairing the damages done by the people living on your property.
3. Have You Compared Insurance Carrier Offers? Go online to a comparison platform that will do most of your work. They will compare numerous insurance carriers and send you offers from some of their partner sites that will work with you. Compare all the offers by reading through them. Make a note of the details that are important to you. Once you have a couple of choices, figure out which is more cost-effective and go with them for your new insurance policy.
4. How Much Will The Switch Cost? You know there will be fees to switch over, but have you added them to see if the switch is cost-effective? You never want to have two policies active simultaneously, so you may want to wait to switch until the premiums are due again. If not, the company you are leaving will probably charge you an early cancellation fee. You also must remember that some home insurance policies will have a waiting period before the policy becomes active.
5. Is Switching Your Home Insurance Coverage A Good Idea? Now that you have taken the time to compare the various options and made any changes that needed to be made, it is time to actually consider all the facts and decide if it is worth switching. Check the difference in cost, compare the policy details, and find out if your home is covered against what you need it to cover. If the obvious answer is yes, it is a good move, so by all means, do it. If you are not gaining much, if anything, it will not be worth the hassle of switching.
Switching your home insurance policy is up to you, but it needs to make sense; otherwise, it will be a waste of time and money. There are so many options available now that you can do most of your insurance transactions online that there truly is no need to settle for the best option. Find a home insurance policy that works for you because you do not work for them.