There is a big difference between canceling and non-renewing an insurance policy. The difference is that one could affect your credit rating and your ability to get insurance from another carrier. You need to understand the difference between these two terms and make sure you have continuous coverage on your homeowners insurance.
If you cancel your homeowners insurance because you sold your home or you are no longer living in the residence, you will need to contact the insurance provider in writing. You may even be due a refund if your premium was paid in full and there are several months left on the policy. On the other hand, if the insurance company cancels your policy, it is usually because you have not made your payments or you have had an unusual amount of claims during the policy period. If your coverage was canceled because of nonpayment, this will affect your credit rating. Also, if one company cancels your policy, other companies may not be willing to insure you either.
Non-renewing a homeowners insurance plan is different. This is when either you, or the company, decide to no longer do business together. Many homeowners choose to shop around for better rates on insurance. When you are comparing quotes online, you may find a more affordable payment for the same type of coverage. In this case, you would not renew your policy when it is up. You will probably want to make sure the insurance company doesn’t automatically renew your plan by sending them notice in writing. If the company does not renew your policy, it may be because they are no longer servicing your area or they may not provide that type of insurance any longer. Just make sure you always have continuous homeowners insurance by comparing rates online.
Does your current homeowners insurance policy provide you with all the coverage, as well as the quality service you deserve? If you’ve answered “no” to this question, it’s time to make an insurance rate comparison to see where you can get better coverage and service for a similar or lower price. What follows are some pointers on what to consider when making an insurance rate comparison for your homeowners insurance policy.
- Are the coverage limits high enough? Especially for those who own homes that are worth over $300,000, it’s essential that your property is insured for an adequate amount. That means that the coverage should be enough to cover realistic repair and replacement costs of your home. If you’re not sure whether this is the case, ask a realtor and an independent contractor what kind of sum you’d be looking at and compare their answers to your insurance coverage.
- Does the homeowners insurance policy provide realistic coverage? You should always make sure that you’re covered for realistic events. For example, if you live along the East Coast, chances are you’ll face severe wind damages at least once in your life. If you live in California, you need coverage for earthquakes and wildfires. Some of these will be included in your policy, but you’ll most likely need to purchase other coverage types such as flood insurance separately. Add the total costs up before deciding whether a quote offers a good rate or not.
- Is the insurance company trustworthy? Obviously, the larger insurance companies are well-known for a reason and know how to handle claims efficiently. But smaller, unknown companies may offer great rates too. Check their reputations with the Better Business Bureau before committing to any policy with an insurer you don’t know.
If you’re like most homeowners, you want to save money without spending all day thinking about your insurance policy. But did you know that if you take a couple of hours to compare home insurance policies, you could wind up saving hundreds of dollars a year?
Not All Homeowners Insurance Companies are Created Equal
There can be significant differences in policies from different homeowners insurance companies depending on where you live and, more importantly, on the pricing, coverage, and kinds of services companies offer. And though you probably did your research before purchasing your policy, there can be unpleasant surprises later on. For example, you might suspect you’re paying far too much for your home insurance; you might be dissatisfied by your insurer’s service after filing a claim; or you might want coverage with higher limits. All of these, and more, can be reasons to compare home insurance from other companies to find out if you can get a better deal elsewhere.
Compare Home Insurance the Smart Way
The first thing to realize when researching homeowners insurance companies is that the level of coverage they offer has to be stated in the policy itself. So take your time and read the entire document, especially the fine print. If you don’t understand something, call the customer service department and ask them to clarify. Understanding a home insurance policy before you buy it can mean the difference between being adequately insured and being underinsured. In addition, you need to read consumer reviews for each company and check their reputations with the Better Business Bureau. Last, but not least, remember to never cancel your current policy before the term is up, otherwise you might end up paying a high penalty for early termination.
People who’ve been through a life-changing event know that when it comes to peace of mind, getting homeowners quotes is the first step. For example, if you’ve survived a tornado but lost your home, you’ll be grateful for your homeowners insurance policy that’s going to allow you to rebuild your home. Or if you and your partner have recently had twins, it suddenly becomes clear that taking steps to protect your family, your home and your possessions is even more important than you ever thought. Getting homeowners insurance quotes starts the process of attaining peace of mind.
You can request free homeowners quotes online and have them tailor made to your personal situation. Of course, you want to insure your home for the full replacement value in case of a disaster, and you’ll also want to review exactly what types of damages are covered. Take your time to really read through each quote, and if you have any questions or concerns, contact the insurance agent listed on the quote. Remember, being underinsured is never enough when disaster strikes, so it’s imperative that you understand all of the terms and conditions before you purchase a homeowners policy. Make sure you get the best possible coverage for your situation, and remember, peace of mind is priceless, and so is a good insurance policy when you need it!
With all of the terrible natural disasters that have hit the planet in recent months, many people are starting to compare homeowners insurance in order to add earthquake and flood insurance to their policies. Regular homeowners insurance policies do not include these options, but simply adding them to your policy could increase your insurance premiums significantly. However, not adding them could result in insurmountable costs in the event of a natural disaster. So how can comparing insurance help you get the coverage you need at rates you can afford?
Why you should compare homeowners insurance
When you compare homeowners insurance quotes, you’ll find the price varies significantly from company to company, and it’s not unusual to find a quote that offers you a better rate than you’re currently paying. Adding flood and earthquake insurance becomes much more affordable when you’re paying less on your homeowners insurance, so it might be a good idea to switch insurance carriers. A word of warning, however: most insurance carriers require at least 30 days notice before you can terminate your policy, so read the fine print carefully before taking action. Also make sure that the policy you want to switch to is in full compliance with your mortgage lender’s requirements.
Comparing insurance online
Comparing insurance online with AgentInsure is an easy, trustworthy way to find the best quotes on homeowners insurance. All you have to do is enter your information in the online form and your quotes will be sent to you by email. There’s no obligation to purchase any insurance and you can take all the time you need to review the quotes. Why wait? Request your free quotes from AgentInsure today!