Switching your Home Insurance Company

Some people are fortunate to have found the right insurance company for their needs, and at rates that are extremely competitive in the insurance market. However, many other people, most who are on their first homeowner’s insurance policy, shudder when they hear of the lower rates that their friends and loved ones pay for even better coverage and lower deductibles. It make you start to wonder how can one insurance company’s policy quotes be so much higher than another’s, and soon enough you start to think about switching insurance companies.

Think switching your home insurance company is complicated? Think again! Switching insurance companies is a completely pain free process, with the only drawback being having to choose which new homeowner’s insurance quote to sign on the dotted line. With the ease of either applying for homeowner’s insurance online, by mail or in person at an insurance office, the homeowner is given the basic knowledge of how their present insurance policy holds up to the competition. The insurance agent will compare your present policy to what they have to offer, and let you make your own decision, which does not have to be made right away. You can wait and get two or three more insurance quotes from other insurance company’s agents before deciding which one is best suited for your needs.

In the ever-competitive insurance market, the competition will sometimes do pretty much anything to steal you away from your present insurance provider. When competition comes to the forefront, many insurance companies will give you an automatic set decrease from your present policy’s rates, and some companies will even throw in some extra coverage, like free replacement cost coverage for all of your belongings.

The reasoning behind the lower rates and included benefits is that the odds are that each homeowner will pay a lot more in premiums than the insurance company will pay out to them in settlements. This is not always the case in a policy-by-policy basis, but in the long run, it is pretty much the reason insurance companies post such impressive profits each year. Many people will simply just go on paying their original insurer, without ever asking another company for a competetive homeowner’s insurance quote.

Switching homeowner’s insurance is as simple as contacting a few competitive insurance providers, and asking them for homeowner’s insurance quotes. However, before asking for any quotes, be sure that you know exactly what coverage you want, and the deductible that you are willing to pay. Deductible is the amount that the insurance company will automatically deduct from any future insurance claims, usually from $100 up to over $1,000, however the average deductible is $500. That means if you lose $850 worth of goods in a break and enter, you would be compensated with $350 by your insurance company.

When looking for competitive homeowner’s insurance quotes, first make sure that any insurance providers that you contact are accredited by the Better Business Bureau (BBB), and State or Provincial Accreditation Boards. After finding an insurance company’s quote that is of interest, you can then tell your current provider you are cancelling your current policy either within 30 to 90 days, depending upon the guidelines within your policy agreement, or at the end of your policy’s term.

When having insurance companies make quotes against each other, you may find yourself in the middle of a small bidding war. You show your newest quotes to the remaining interested homeowner’s insurance providers, and they may even come up with an offer that beats the competitor’s offers by 10% or more, with a lowered deductible and/or added coverage. All it takes is a few internet queries, or some visits to a few insurance companies, and you could be saving 10% to over 20% off of your insurance payments, and get better coverage and lower deductibles.

What are you waiting for? Contact some insurance providers today, and start the process of either switching insurance companies, or making your own provider lower your rates and deductibles. A few hours worth of your time could save you hundreds of dollars a year in homeowner’s insurance, and provide you with a more complete coverage.