Tips to Get the Best Deal on Homeowners Insurance

Nowadays, Joey appears to be a very happy man. Recently, he received a promotion and was made the branch manager of a Boston based MNC bank. He also received a 15% salary hike. His wife Sally is also equally happy. Just a fortnight back, she was appointed as a librarian in a Boston public library.

Now, they have both decided to purchase a house of their own. Nick has decided to finance the purchase with a mortgage. They have zeroed in upon an apartment that is located in uptown Boston. Nick knows a local mortgage lender operating in Boston and has decided to approach him for the money. The mortgage lender has advised Nick to get a homeowners insurance cover.

Homeowners insurance coverage is a type of property insurance that seeks to offer financial protection against catastrophes and calamities. The protection cover is applicable to the house as well as everything that is present inside it.

When you are out to purchase a homeowners insurance policy, you are always interested in getting the best deal. In other words, you are interested in getting the highest possible cover at the lowest premium. It is possible to get a good deal for a homeowners insurance policy if you try to follow these simple tips and rules.

For instance, you should try and visit as many insurance companies as possible. This will give you an idea of the premium rates offered by different companies. Take the case of James, a doctor practicing in Boston. James visited almost 20 insurance companies and enquired about the various homeowners insurance policies offered by them. However, the fact that James was self-employed made it easier for him to physically visit each company.

If you are hard pressed for time, you can follow the footsteps of Michael, a cashier with Wal-Mart’s Boston branch. Michael made use of the yellow pages to get in touch with various insurance companies based in Boston.  He also visited the website of National Association of Insurance Commissioners and collected information about the quotes offered by various Boston based insurance companies.  He also got to know about the customer complaints pending against each company.

However, when you are purchasing a homeowners insurance, do not repeat the mistake committed by Nancy, a Boston based dentist. She had purchased a homeowners insurance policy from an insurance company that was offering the lowest premium. She later realized that the company had a very poor track record of claims disbursement.

When you are purchasing a homeowners insurance, it is essential that you also give importance to the quality of services offered by the company. You can refer consumer guides, consumer magazines and ask for opinions from your friends and acquaintances to get an idea about the services offered by the company. You should also take a look at the financial condition of the insurance companies by visiting sites such as A.M. Best and Standard & Poor’s.   

Experts also state that as far as possible you should try to raise your insurance deductible. According to Insurance Information Institute, deductible is the ‘the amount of loss paid by the policyholder. Either a specified dollar amount, a percentage of the claim amount, or a specified amount of time that must elapse before benefits are paid. The bigger the deductible, the lower the premium charged for the same coverage.’

Increasing the deductible amount helps you to lower the premium amount paid on the policy. Take the case of Perry, a Boston based architect. He had purchased a home insurance policy for his house. He successfully raised the deductible from $500 to $1,000 and this brought down his premium by 22%.

Before you apply for a homeowners insurance policy, it is essential for you to fortify your house against burglary as well as natural disasters. This means taking steps like adding storm shutters, reinforcing your roof and repairing the same, modernizing your plumbing and electrical connections, installing window locks, burglar alarms, fire extinguishers and fire alarms. According to Thomas, an insurance agent working for a Boston based insurance company, taking preventive measures against natural disasters as well as possible thefts can help one to reduce the premium amount by as much as 20%. He also advises policy buyers to seek the insurance company’s opinion before installing anti-theft or anti-fire devices. Remember, not all equipments earn a discount from the insurance companies. Hence, it is advisable to take the opinion of your insurance company before you actually spend your money on buying these equipments.

If you are interested in reducing the premiums paid on your homeowners insurance, then you can try out the step taken by Nicholas, another Boston native. He decided to approach the same insurance company from where he had purchased his auto insurance. He bargained with the authorities and walked out with a discount of 12% on his premiums. Experts state that buying your auto insurance and homeowners insurance from the same company can help you to avail a discount of at least 5% on your premium amount.

Thus, these are just some of the few tips that can aid you in bagging a better deal on your homeowners insurance policy.

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