Home Insurance Comparison Keeps Dollars in Your Pocket
October 5th, 2009 by Jamery ClarcksonIf you've just received your home insurance bill and can't believe how much of an increase you've taken, it's time to do a home insurance comparison. Maybe the price increase isn't outlandish but each bill you receive is more than the last one. Over time that mounts up to a large bill. If you haven't shopped for home insurance for a while, take time now and let your fingers and keyboard save you some money.
When you do your home insurance comparison-shopping make certain that you compare apples to apples. The coverage should be the same for all policies. There are several parts of the policy that you need to check closely, the deductible, the liability limits and any additional riders you have on your policy. You also need to make certain whether you have replacement cost on your policy and insure the home for at least 80 percent of replacement cost.
The easiest way to do home insurance comparison-shopping is on the Internet. Often websites offer you the capability of comparing several companies when you input your information. Normally, you'll have about ten comparisons in less than a half hour. If you prefer calling, you'll find that setting aside two hours might be necessary to get a thorough comparison of rates.
Let's make this easy on you. The deductible, listed on your deck sheet, the only page with your name and description of your coverage and the first page on your policy, normally is $250, $500 or $1000, but in some cases may be lower or higher. You pay this amount out of pocket if you experience a loss to your home or property before the insurance company pays for anything. Check to make certain the comparison quote uses the same deductible. The higher your policy's deductible the lower your premium becomes.
Liability limits on a policy are also important. The amounts should be the same for your policy and your home insurance comparison. The cost difference between 100,000 and 300,000 is minimal but it does make a difference for comparison sake. Once you finish comparing policies, before you purchase, if your liability is at 100,000, consider raising it to at least 300,000. Again, the cost is minimal but an injury at your home could easily run more than 100,000 and leave you responsible for any amount of that $100,000.
Finally, most policies insure at least 80 percent of replacement cost, but read the fine print to make certain yours does also. Check to see if you have any additional coverage for special items such as expensive electronic equipment, jewellery or furs. These cost extra and increase your premium. If you find cheaper coverage in your home insurance comparison, but it doesn't have the riders, it's not a fair comparison.
You should compare rates for your policy every two years or if you experience a huge jump in rates.