7 Tips for Choosing the Right Homeowner Insurance Company

7 Tips for Choosing the Right Homeowner Insurance Company

7 Tips for Choosing the Right Homeowner Insurance Company

According to German Reinsurer Munich Re, natural catastrophes across the globe resulted in $210 billion in damage in 2020. The US was hit pretty hard with a $95 billion damage, majorly from prevailing hurricanes and wildfires. Globally, only less than $85 billion in property losses were insured. It’s more important now than ever essential for homeowners to understand whether they are financially protected if disaster strikes.

Homeowner’s insurance is slowly turning out to be a necessity rather than a luxury. You may need to find the right homeowner insurance company to provide coverage for your property. Here are tips for choosing the right insurance company.

1. Assess Your Insurance Needs

According to a 2018 ValuePenguin Survey, 85% of homeowners have home insurance. Yet 47% of these homeowners do not know what their policies cover. A further 20% have never reviewed their policies. You may need to find a homeowners insurance policy that guarantees sufficient indemnification for your property. You may need to assess the risk factors specific to your region. Reviewing your current policy may help you understand your insurance needs and find a homeowner insurance company that provides a policy that fits.

2. Type of Policy

According to the National Association of Insurance Commissioners (NAIC), 79.09% of home insurance policies are HO-3s. HO-1 and HO-2 are peril policies that only cover damage due to a peril that is specifically named in a policy. HO-3 and HO-5 are open peril policies that can cover any damage to the home’s structure except those specifically excluded from the policy. HO-8 are more common for older, higher-value homes. Comparison shopping may allow you to find the right policies for your home.

3. Cost of the Home Insurance

You may need to determine the amount you are willing to put aside for your homeowner’s insurance. You can make a request for multiple homeowners’ insurance quotes from different insurers and compare them. Be wary of picking out an extremely high deductible in the hopes of reducing your monthly payments. You may need to pick a deductible that you can afford to pay if a disaster ever strikes.

4. Financial Health

You may need to take your coverage from a homeowner insurance company that will be present when misfortune strikes. The insurance firm needs to be financially stable enough to pay out when you file your claim. You may need to assess the financial health of the various insurers in Florida. There are a variety of online review sites that grade insurance companies depending on their financial strength.

5. Full Disclosure

You may need a homeowner insurance company that is forthcoming about the different clauses in their policies. You may need to avoid insurers that are vague on essential information such as benefits, premiums, and canceling procedures for the policy taken. You can dive deeper on online review sites to pick out insurance firms of good standing in the local community. Find out if there are any complaints lodged against the company from the local state board.

6. Timely and Smooth Claims Handling

You may need a homeowner insurance company with good customer service and smooth claims handling practices. You can get in touch with your local insurance department to find out if there are any unresolved complaints lodged against the insurer. It’s important to assess whether the company has good customer service skills and sufficient staff members to quickly sift through claims for errors or gaps before payment is issued.

7. Customer Satisfaction

You can find out about the quality of customer service by taking online reviews and feedback from other customers into account. Be wary of selecting an insurer that lacks transparency on policy coverage, exclusions, premiums, and claims procedures. Always check for what you are covered for under your existing policy before shopping around for new policies.

Home Owner Insurance Venice FL

Florida homes face unique risk factors that may require tailored homeowner insurance coverage to better protect the property. Evolve Insurance Agency is a local, family-owned, independent insurance company that helps you pick out the right policy for your home. Call us today to request a homeowners insurance quote.