If you are in the market for a homeowners insurance policy. You may be wondering what exactly you should be looking for in a good policy.
While the policy itself is important, there are other factors to consider as well.
Let’s take a look at some of the essential points homeowners need to evaluate before settling on a policy that is right for them.
Coverages
Most homeowners insurance coverage underwritten by the leading insurance companies is fairly standard. The typical policy will cover:
- The dwelling/structure itself – damage or loss.
- Personal property – damage or loss.
- Other structures on the property.
- Personal injuries sustained by others.
- Damage to the property of others.
Those are the basic coverages. However, within the policy, there will be stipulations and exclusions you need to be aware of. But they are fairly standard in most policies. So, if coverages are standard, what else do you need to look at?
Cost of Homeowners Insurance Policy
This is one thing that certainly isn’t standard. For example, seniors can find homeowners insurance policies at significantly discounted premiums. Especially if they have senior membership to a group like AARP and shop insurance from the association’s partners.
But there are other things that factor in, such as the amount of coverage. Whether or not you are bundling with another policy with the same provider, and of course, where you live.
Risk is always going to be a huge factor because that’s what insurance is. It is providing you with financial protection against the risk of loss and let’s face it, some neighborhoods are just riskier than others.
Whether it’s crime or susceptibility to natural disasters. Actuaries rely heavily on the exposure to risk when setting premiums for their insured.
Customer Service
Now, customer service is something that you won’t see in your homeowners insurance policy. So there is nothing standard about this either.
What you really should do before making up your mind about which insurance provider to go with. Take the time to read a few customer reviews as well as reviews on impartial sites.
You know that paid reviews are always going to be slanted in favor of the business they are reviewing. So read all reviews with an open mind.
Read a good mix of the customer, impartial, and paid reviews to weigh the pros and cons of customer service for each company revied. This is imperative when purchasing insurance.
The Claims Process Homeowners Insurance Policy
How easy is it to file a claim and were customer reviewers treated with respect and concern when communicating with the insurance claims department?
Did they feel a genuine concern for their questions or losses because that is something that can’t be written into a policy?
You want to know that your homeowners insurance coverage will be there for you when you need it and the process will be explained well so that you know what to expect.
If you read the reviews with an open mind, you will find those insurance providers that genuinely care about the people they cover. It’s that extra something that makes a great policy even better.
