Chances are, purchasing a home will be one of the most significant investments you will ever make. Therefore, you must take the necessary steps to protect your investment. One effective way that you can do this is by purchasing home insurance. As you can probably imagine, choosing the best home insurance company for one’s needs is not always an easy task for homeowners. Read this article to learn more about how to choose the best home insurance company for you.
What You Should Consider
As a homeowner, there are several factors that you should consider when choosing a home insurance company. Read below to learn more about what you should consider before making your final selection.
Qualifying for Coverage
One thing you should consider is your ability to qualify for coverage. You may not be qualified to purchase home insurance from every single company. Home insurance companies tend to have underwriting rules. The underwriting guidelines refer to rules and standards used by insurance companies to determine whether to offer or renew insurance coverage to a homeowner. If you or your property violates the underwriting rules of an insurance company, your application for coverage will likely be denied.
Some disqualifying factors include the following:
- A criminal history
- Lapsed coverage
- A history of claims
- Running a business out of your home
- High-risk location
- Hazardous features
- Home maintenance
Policy language is a factor that you should pay close attention to. After all, the last thing you want is to purchase home insurance coverage only to discover when it comes time to file a claim that it does not meet your needs. You can expect all companies to offer the following basic coverages:
- Damage to your home
- Damage to other structures on your property
- Damage to personal property
- Living expenses when the house cannot be resided in due to a covered loss
- Comprehensive personal liability
- Medical expense
Home insurance companies differ in terms of what they cover outside these basic coverages.
You also want to pay close attention to cost. All home insurance companies have different base rates. The base rates are added to or subtracted from based on different factors, such as the value of your home, the location, the condition, and the age. The location of your home relates to its Protection Class, which is a factor that considers the distance of the closest fire department to your home and the quality of performance of said fire department.
Contact an Independent Insurance Agency
You should consider contacting an independent insurance agency to help you select the right provider of home insurance for your needs. An independent insurance agency is responsible for representing several insurance companies. The independent insurance agency has a thorough understanding of how home insurance companies differ from one another. Therefore, an agency has the knowledge and resources necessary to make sure you are working with a home insurance company that fulfills your needs.
Independent insurance agents have many options and the required knowledge of underwriting rules and policy language to help you choose the right home insurance company. For more information about how to choose the best home insurance company for you and your needs, don’t hesitate to contact us.