Most people set it and forget it when they buy home insurance, but not every home insurer is the same. Some are cheaper, some are easier to work with, and some provide better coverage. You could actually be doing yourself a disservice financially and in other ways if you don’t review your policy annually.
We’ll detail how checking in with your existing insurer and seeing what other insurers offer can help you ensure you have the best home insurance. Having the best will usually lead to financial savings, better coverage, and lower stress.
Let’s get started looking at the top six reasons to compare home insurance rates every year.
1. Save Money by Comparing Rates
It seems pretty obvious that this would be the top reason to compare home insurance rates. You might be able to save significantly even if you just compared rates last year, but if it’s been even longer than that, you may be shocked by how your rates could vary depending on who you choose as an insurance provider.
Even though insurance companies consider the same general information when formulating rates, they all do it a little differently. So as your personal information changes, your quotes from different companies will also change.
2. Get Better Coverage for Your Home
Perhaps when you first purchased your home insurance policy, you went with a cheaper policy that provided a low level of coverage. If, as time has gone on, you’re able to budget for better coverage, an annual insurance review will help you compare and find a policy that fits your needs and budget.
Some insurance policies cover the depreciated value of your home’s contents. This stipulation can make rebuilding following a disaster almost impossible. A higher level of coverage would cover the replacement value of your home’s contents.
For example, if you bought a couch for $2,000 10 years ago, it may only be worth $500 now, thanks to depreciation. If you have an insurance policy that covers the actual value of the couch, you’ll receive reimbursement for $500. However, if you have a replacement value policy, you would receive reimbursement for purchasing a $2,000 replacement couch.
3. Better Customer Service
If you’ve never filed a claim, there’s a good chance that you don’t have any idea how your insurance company performs regarding customer service. How a company treats its customers should be an essential factor in making your decision for a home insurance provider.
You can gain insight into customer service ratings by looking up potential providers on the Better Business Bureau website and comparing customer satisfaction survey results from J.D. Power.
4. Lower Your Rates With Discounts
One of the best insurance discounts available is a bundling discount. If you purchase home insurance from the same provider as your car insurance, you may qualify for a bundling discount.
If you’ve recently switched car insurance providers, you should see how that company compares for home insurance rates. If their rates are competitive with the best rates available, a bundling discount might make them the cheapest option.
There are more discounts to consider like military, paperless billing, and automatic payments. Even though most insurance providers offer similar core discounts, they make up different percentage savings. For example, Company A may offer a 10% military discount while Company B may offer a 15% military discount.
If you know you’ll be eligible for a specific discount, compare how much savings different insurance providers offer for that factor.
5. Get Special Coverage
Perhaps you inherited an heirloom Tiffany and Co. jewelry collection, or maybe you’ve purchased a new piece of art. These categories typically have a limit in standard home insurance policies.
If the value of your collection exceeds that category’s limit, you’ll need to increase that limit or consider purchasing a standalone policy.
6. Smart Home Upgrade Incentives and Discounts
If you’re considering installing a smart security system or other smart home or yard safety features, you may get extra benefits by changing home insurance providers.
Many insurance companies have partnered with home security providers to offer discounted initial purchase, installation, or premium costs. Comparing which home insurers offer incentives for security features can help you find a company that aligns with your smart home goals.
Comparing home insurance quotes is easy. It shouldn’t take you more than a couple of hours, and it could lead to significant savings.
In addition to the financial benefits, knowing you have the best rate for the protection you need for your home can give you peace of mind and reduce stress levels.
Even if you stick with your current insurer, the process of comparing rates helps you to understand better what’s in your policy and how your home insurance coverage works.