How to Find the Best Homeowners Insurance

home protection insurance

It is a good idea for homeowners to protect their properties against disasters. One of the best ways to do is to buy homeowners insurance. Unfortunately, when the disaster strikes, the insurer might not live up to the expectations, if you have large claims. If the damage is extensive, there is a high likelihood that there will be a disagreement over the value of the damage. The following are some things you should know.

Insurance Companies Transfer the Risk

home insuranceThe typical deductible for homeowner insurance policies can range from $500 to $1,500. However, when claims from harsh weather elements such as wind, hail, and hurricanes, you may have to pay about 5% of the value of your homeowners insurance policy. In areas where severe weather elements are common, you may pay up to 10%. In fact, some insurance companies have abandoned areas that are prone to hurricanes. Others use legal jargon to avoid compensating homeowners.

Find the Right Coverage

The best way to know an insurer is when it comes to handling claims. Some insurance companies offer better satisfaction than others as far as handling claims is concerned. This is based on the damage estimates computed by the insurer. For example, you will find low-rated insurers that disagree with their damage estimates. In such a case, homeowners felt that the final compensation was too small.

Fight Your Claim

You should not be afraid to make small claims. There is a good chance that you will not suffer a price if you make a claim of less than $10,000. Those who make claims can also see an increase of about $200 per year. You can get a discount if you decide to negotiate with the insurer. If you are not happy with your claim, you are free to ask for more. You can also ask for a second opinion. Legwork, persistence, and patience can help you get multiple estimates.

Choose a Better Deal

homeowners insuranceYou should note that home insurance is less competitive as compared to auto insurance. However, you can save a lot of money in premiums by shopping around. This explains why some homeowners switch insurance companies because they have found a better price.

When shopping for an affordable insurer, you should consider buying your auto coverage and homeowners insurance policy from the same company. In this way, you can enjoy cost savings of up to 40%. Remember that most insurers use credit-based scores to determine eligibility and set premiums.