Owning a home is one of life’s biggest joys — and largest responsibilities. In order to protect what’s yours, you need to know how to shop for home insurance. The world of home insurance can be one that’s full of confusion and high-pressure sales tactics. Learn how to shop for home insurance in a way that will keep you in control and help you save money along the way.
The key to knowing how to shop for home insurance is to realize that there is no one-size-fits-all answer that covers everyone’s circumstances. Because you’re unique — and life is always changing — your home insurance should be flexible enough to change with it.
Before jumping into how to shop for home insurance, let’s go over some house rules. This includes:
- what information you need on hand to shop for home insurance
- identifying what home insurance can protect you against
What Information Do You Need to Get Home Insurance
Before shopping for home insurance, gather the documents you’ll need so the process goes more smoothly. In addition to supplying information that identifies you, such as your social security number and birth date, you’ll also need to share specifics about your home. The address, its amenities, any repairs needed and its current condition are all items you’ll likely be asked about.
What Does Home Insurance Protect You Against?
The right home insurance is designed to protect your home against many common scenarios as well as those that don’t get as much coverage in the media. Depending on your particular home and where it’s located, this could mean that you’ll need protection against theft, hail, lightning, fire, wind, and more. Your home insurance package should include those protections that are most relevant to your own circumstances.
Now, with this out of the way, let’s review how to start shopping! Here are the money-saving tips to keep in mind when shopping for home insurance.
Compare Companies For Best Coverage and Price
One reason shopping for home insurance is so stressful is because there’s so many companies to choose from. Of course, they all claim to be the best. A great way to find the right company for your needs is to compare quotes and policies with an independent insurance agent or broker.
In this stage, you should start doing a little research, search the web, and make a list of your top 5 companies. Then compare and start the process of elimination until you can comfortably claim a victor. Understanding what you need in your policy will play a critical role in the insurance company you go with. That’s why it’s important to make a list of must-have items before thoroughly researching.
Read All The Reviews
Okay, maybe not all of them. But enough to give you a general idea of the company and the level of service you’ll be getting if you choose to go with them. Some important things to look for in reviews are the:
- Average amount of time it takes to file a claim
- Quality of customer service and willingness to have questions answered
- Consistent pricing throughout a period of time
- How long customers typically stay with that specific company
It’s also wise to review the company’s rating on third-party review sites, like BBB, to get a better understanding of things. If you run into any questions, reach out to a representative from the company for answers.
Money-Saving Tips for Home Insurance
Because home insurance is a regularly occurring cost that many new homeowners don’t consider when deciding just how much they can afford, the monthly premiums can come as a surprise to you. The following are some discounts that insurance companies often offer:
Bundling Policies
One of the most common — and lucrative — discounts occurs when you bundle policies that are issued by the same company. There are many ways this can happen, including home and auto, home and RV, and home and motorcycle.
In addition, by having multiple policies with a single company, you only need to deal with that one carrier.
Safeco, Amica, Liberty Mutual, State Farm, and MetLife are some popular insurance companies that offer this discount.
Loyal Customer
Customers who haven’t filed a claim with your insurance company and who have been with them for several years, might qualify for a discount. Some common insurance companies that offer this discount include Esurance, Allstate, American Family, and Amica.
New Home Buyer
As a first-time homebuyer, your insurance company might offer you a discount on your home insurance.
Hartford, Travelers, Progressive, Esurance, and Amica are just a few of the insurance companies that provide this discount.
Payment Style
By setting your payment up a certain way, your home insurance company might offer a discount. Some payment options that could be available and that might mean a discount for you include paperless account management, setting up automatic payments, and making your payment using electronic funds transfer (EFT).
Liberty Mutual, American Family, Safeco, and Progressive offer such discounts.
New Home Construction
A newly built home could mean a discount on your home insurance. While the exact age of the home varies among carriers, the range is between 1 and 10 years.
Nationwide, Allstate, American Family, Liberty Mutual, and USAA are just a few of the insurance companies that offer this discount.
Non-Smoker
If you are a non-smoker and you maintain a home that is smoke free, there are some carriers that might offer you a discount. These include Farmers, Allstate, and Esurance.
Smart Tech
With the increased popularity of smart homes and the tech that drives them, many insurance companies are taking notice. American Family, for example, focuses on technology that is used for home security, leak detection, and increased energy efficiency by offering a discount of up to five percent.
Travelers, Farmers, Nationwide, Liberty Mutual, and Progressive also offer some sort of smart tech discount.
Fire Prevention
Most municipalities require at least one smoke detector in a home. For homes that are large or that have multiple stories, though, the installation of more fire prevention devices could equate to a discount from the home insurance company.
Nationwide, Erie, Hartford, Liberty Mutual, and State Farm are just a few companies that offer this.
Home Security
Installing a home security system shows a commitment to protecting your investment. This, in turn, means that you will likely have a much quicker response time from the authorities if someone burglarizes it or trespasses on the property.
USAA, Liberty Mutual, Amica, Travelers and Nationwide are just a few of the carriers that offer this discount.
Roof Upgrade
While a new roof is costly, repairs to it can also be expensive. Opting to use materials that offer your roof more protection from hail and other impacts could mean that you qualify for a discount.
Esurance, State Farm, Liberty Mutual, Nationwide and Allstate are insurers that might provide one.
