One of the biggest mistakes you can make is selecting your homeowner's insurance policy based on price alone. While your budget may affect which company you select, price is not the only factor that you need to consider. Here are a few of the factors you need to consider when you are shopping for a homeowner's insurance and why these factors are so important.
When you are shopping for any type of insurance policy, including homeowner's insurance, always take the time to carefully review how much the deductible is for the policy you are looking at. If you ever have to file a claim, the deductible is the out-of-pocket amount that you have to pay. For example, if your deductible is $1000 and damages to your home are $5000, you have to pay $1000, and the insurance company pays $4000. Some companies have low deductibles, and others have high deductibles. Having a high deductible can result in a decrease in your insurance premiums, but it does you no good to have a high deductible if you cannot afford to pay the deductible if you file a claim. As such, always carefully consider how much the deductible is and whether you can afford it.
What the Policy Covers
Another important factor to consider when you are shopping for a homeowner's policy is what exactly the policy covers. Most people assume that homeowner's insurance policies all cover the same elements. But this is not true. Depending on where you live, the homeowner's insurance may include supplemental coverage for items like flooding or hurricane damage, while other policies in the same area may exclude these items. Always carefully read through the policy to find out what is and what is not covered.
The Reputation of the Insurance Company
Lastly, take the time to research the reputation of the insurance company. Some companies are notoriously harder to work with, slower to pay out or deny more claims. While a company may be inexpensive, it may not be worth the price if you are going to have to jump through hoops and wait a prolonged period of time if you ever have to file a claim. Always research the company so you know what you can expect should you ever have to file a homeowner's insurance claim with your homeowner's insurance company.
If you are in the market for a new homeowner's insurance policy, take the time to get quotes from multiple companies. Then, as you are comparing the prices, be sure to compare the plans and research the reputation of each insurance company. This will help you select a plan that not only fits within your budget but is also the best fit for you.
For more information, contact a company like Oliveira Insurance Agency.