How to Compare Home Insurance Companies

When it comes to your loved ones, you wish to provide them with the best protection there is. From health insurance to life insurance, you want nothing but only the best for them. Just like your loved ones are invaluable, so is your home. After all, it is the place where all near and dear ones come together to create and cherish lifelong memories. Your home is the one place where you can relax, unwind and bask in the love and care of your family. Your home is also something into which you have invested your hard earned money and savings. It is lifelong investment, which will continue to be inherited by generations after you.

Your house, like many other things, is also vulnerable to risk from external elements and forces, sometimes natural and sometimes man made. Forces of nature like earthquakes, storms, hurricanes, cyclones have been a prevalent phenomenon in many parts of the world, and have wreaked havoc across entire cities and subsequently people’s lives. Beside natural causes, there are a number of perils which are the work of man. Robberies, burglaries, fires, malicious intentions, accidents, etc. are some unexpected events which can happen without any warning whatsoever. So, how do you protect your house from such unforeseen perils? The simple answer is, home insurance.

For decades, people around the world have relied on home insurance to protect their houses. When it comes to home insurance, investing in the right policy can make all the difference in the world. However, with number of insurance companies the wide range of insurance policies available, deciding on the right one might be a bit of a task. Here are a few pointers to keep in mind, to help you find the best insurance policy.

Consider the Health of the Company

Once you’ve drawn up a list of prospective home insurance companies, you must do some research on them. Go online and try to find out how other consumer have rated a company, what the general feedback is, about service, customer service, settlement of claims, etc. This exercise in itself can give you a fair idea about the company and also about the specific insurance policy that you’re looking at. Often in feedback, customers would have mentioned the pros and cons of the policy, giving you a fair idea about whether or not the policy is a good choice for your home.

Compare Coverage & Premium

Coverage is one of the most important factors while deciding a home insurance policy. Your policy must provide coverage for all the risks that your house might be prone to. Say, you live in an area frequented by cyclones, floods or other such natural disastrous phenomena. In this case, you policy must provide coverage against such perils. Ideally, look for a policy which provides comprehensive coverage against a wide variety of perils.

Premium Amount

When you take an insurance policy, you are making a commitment to making regular payments for the cover provided by the company. Insurance premium is another important factor when it comes to deciding on a policy. As it will be a part of your future expenses, you want it to be within your budget. Compare between multiple insurance policies to find out the coverage they provide and at what cost.

Check The Claim Settlement Turnaround Time

In the unlikely situation that you do need to file for an insurance claim, you definitely do not want it to be a struggle. Dealing with the damage / loss is quite stressful on its own. In that light, claim settlements must ideally be a hassle free process, devised to reduce your burden and worry. The turnaround time for settlement of claims is a one of the most crucial factors determining a company’s efficiency. Quick settlement of claims is an indicative of a good company who has your interests as priority, making it a worthwhile choice.

Be Clear About Your Coverage Needs

Each house is unique in terms of its structure, location, contents, value, etc. Which is why, one policy which might be suitable for Mr. A’s house, might not be suited for Mr. B’s house. Specific areas might be characterized by some atmospheric or natural phenomena, which is likely to cause damage. Another scenario, for example, may be, the house to be insured could be a second home or vacation home, which is not occupied often and doesn’t house any valuable contents. Hence, it is necessary that you find a policy which covers all the aspects of your house and provides adequate cover.

Hunt Online For Quick Quotes

Like many other banking products, insurance policies are also available online, making it easier for you to gather information about multiple policies online itself. Also, with the process having gone online, the quotes offered online are often cheaper than what you might get from an agent or at the insurer’s office itself. Compare between all your possible choices for insurance policies and compare the quotes online.

Consider the Cost of Deductible While Calculating Premium

While considering the premium amount charged by a particular policy, you must also take into consideration the cost of deductibles charged with the policy. The higher the amount of deductible, the lower your premium and insurance fee will be.

Request a Quote from Your Existing Insurance Provider

While you are on the lookout for the right home insurance policy which satisfies all your terms, it might be a good idea to check with your existing health or motor insurance provider as well. Loyalty is also one of the driving factors when it comes to home insurance deals. Which is why, chances are fat that your existing insurance provider might offer you the best rates on your home insurance policy, just because you are an existing customer. While collecting quotes from other providers, don’t forget to inquire with your existing insurance provider. 

Company’s Customer Service

Just like the claim settlement turnaround time, customer service provided by a company is also crucial to forming a customer’s experience. More than pre-sale service, it is the post-sale service extended by the company, which really counts. When you’re investigating about different companies, pay special attention to the reviews posted on the customer support provided by the company. This will provide some useful and practical insight, especially for times when you yourself have any issues or queries of your own which need to be resolved, after having purchased the policy.

Go Independent

In case you wish to take the traditional route to applying for a home insurance policy, it is advisable to do so with the help of an independent agent, who is not associated with any particular insurance company. An independent broker will give you quotes from multiple insurers, giving you a chance to compare between multiple coverage and premium options. This way you can narrow down your options to only the most suitable policies.