You’ve been living in your dream home for a little while now and have noticed a couple of things you don’t particularly like about your home insurance policy. Perhaps in all the excitement of your home purchase, you didn’t notice that you and your policy aren’t exactly the best match. Fortunately, home insurance policies aren’t forever. What factors can be enough to make you want to pitch your carrier? Here are four reasons that should tip you off when it’s time to part ways with your home insurance carrier:
1. High Premiums: Whether you didn’t take the time to shop around or your premiums have risen over time, being put in a squeeze is not fun. Believe it or not, you should really consider re-evaluating your home insurance policy annually (perhaps using tax time as a reminder) to make sure it fits your needs adequately.
2. Inadequate Coverage: All home insurance policies are not created equal, to be sure. Are your coverage options limited in some areas? For example, do you have enough coverage for electronics and a heavily computerized home office? Don’t let a claim teach you a lesson. If your carrier doesn’t allow for add-ons to your policy that suit your needs, look elsewhere.
3. Poor Customer Service: If your home insurance carrier is slow to process a claim or seems to keep changing the facts, it’s time to move on. Make sure your new carrier can process claims 24/7. Read reviews from companies like J.D. Power and Associates or Consumer Reports before making the switchover.
4. Potentially Untrustworthy: We all hate to think it, but what if a major disaster was to strike your home and neighborhood? You need to be sure your carrier has the resources to cover multiple claimants at once. Your provider needs to be financially stable and trustworthy. One resource you can check out is A.M. Best, which rates insurers on their financial stability, ranging from A++ (superior) to D (poor).
Keep in mind that your own major life changes may force you to change carriers. Marriages, moves, purchases of major assets — these all should make you re-evaluate your life needs. Remember, rates are largely based on location. As you shop around, look to bundle policies, too, if possible.
When you do finally decide to switch providers, make sure you have continuous coverage. Leave your former carrier with enough time to avoid cancellation fees. And don’t give up after researching a couple of carriers – there are plenty of home insurance companies out there.
If you have any suggestions for home insurance shopping, please leave them in the comments below. And if you’re thinking about selling or buying a home in metro Albuquerque, be sure to contact me today!
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