4 FAQs About Home Insurance Comparisons
When it comes to making home insurance comparisons, it seems like the more you research, the more questions you have. But whether you’re looking for the best home insurance for your first home or high value home insurance for the villa you just bought in Malibu, it’s your responsibility to understand exactly what you’re getting. What follows are four frequently asked questions we hear from consumers making home insurance comparisons.
- If I raise my deductible, will my premium always go down? Are there cases in which it remains the same? Theoretically, your premiums should go down when you raise your deductible. However, in practice, matters often work out differently. Most insurers raise insurance rates by a couple of percent each year, which can result in higher premiums. You might also have a lowered credit score, or you may have filed one or more claims in recent months. All of these things can coincide with you raising your deductible and effectively cancel out the difference. However, it’s important to remember that home insurance comparisons can reveal many different rates from different insurers, so you should always see if you can beat your current insurer’s price.
- Can I lower the coverage on my personal property? No, you can’t. Personal property is in nearly all cases offered as part of dwelling coverage, which protects the structure of your home from weather damages, fires, vandalism, and all sorts of calamities. Unless you purchase additional valuables coverage, the amount of coverage on your personal property is tied in with your dwelling coverage. The only way to lower the coverage on your personal property therefore is to lower the coverage on your entire dwelling coverage.
- On the quotes I received, it states that some deductibles are a dollar amount, while others are a percentage of my home’s insured value. Why are they different? In most cases, deductibles that are a percentage of your home’s insured value are those that have to do with major weather events or so-called “acts of God,” such as tornadoes, hurricanes and earthquakes. Because calamities like these often result in damages to the property of thousands of people and businesses and can add up to over $100 billion in claims, insurance companies have to protect themselves in order to pay out any claims. By requiring homeowners to foot 10 to 15 percent of their repair or replacement bills, insurance companies can help more people get back on their feet after disasters.
- How can I find out if the quotes I receive cover all legal requirements for my state? This is a very good question, and one that you should be concerned about if you’re looking at quotes from small or unknown insurance companies. You can go to your state’s Department of Insurance to find out what the legal coverage requirements are. In addition, most Departments of Insurance can give you information about the insurance company you’re considering purchasing a policy from. Remember, if a quote seems to good to be true, it probably is!
