Have you been considering a new home insurance company? How can you tell which one is right for your home and needs? You can use online comparison sites to find prices for different amounts of coverage, but they don’t offer any details about policies.
Are Insurance Companies All Alike?
Different insurance companies use different methods to decide how much they’ll charge in premiums. They call the process underwriting. Underwriting procedures differ from company to company, making some companies a better fit for some homes and customers. Within this framework, home insurance companies offer standard types of coverage for all home policies. These include:
- Damage to your primary residence
- Damage to additional buildings on your property
- Damage to your belongings
- Additional living expenses (insurance can pay for you to live somewhere else if your home can’t be occupied due to damage)
- Comprehensive liability (provides coverage for accidents that could happen on your property)
- Medical expenses (can cover injuries that happen to others on your property)
Beyond these six main categories, home insurance policies are individualized. Your home’s location, size, and other factors influence which company offers a home insurance policy that will be right for you.
Can You Qualify For Home Insurance With All Companies?
Not every insurance company will insure every person who applies for home insurance. Several factors can influence whether a company will insure your home or decline coverage. Insurance companies can decline to write a policy for reasons that include:
- History of insurance claims
- Operating a home-based business (especially certain types of businesses)
- Home location (in a high-risk area)
- Hazardous features (for example, older homes with balconies or pools and spas)
- Home maintenance issues (need for a new roof, plumbing, or electrical)
The Additional Coverage You Need Will Influence Your Home Insurance
If you have a stamp or other type of collection, you can insure it using a “rider” on your policy. A “rider” is the term insurance companies use to describe specific additional insurance coverage. If you do business out of your home, you can add this to your insurance. Another tip: if you conduct business at your home, even part of the time, you won’t be covered for any damages related to that business if you don’t inform your insurance company.
Flood insurance is another factor in home insurance. If you’re in a flood-prone area, you should consider flood insurance. Not all companies offer flood insurance coverage. An independent insurance agent can advise you about your best choices in flood insurance.
Location, Your Home’s Age and Unique Features Can Affect Your Home Insurance
Two houses in the same neighborhood may appear similar but can have different home insurance coverage and premiums. So many factors enter underwriting decisions and home insurance policies. Your home’s distance from emergency responders could affect your policy. If you have many valuable personal items that need extra coverage, your policy will differ from another homeowner who has fewer valuables. Because of these differences, there’s no quick answer to which home insurance company will be best for you.
Get The Information and Choices You Need From an Independent Insurance Agent
It’s important to know if your home insurance company is financially stable and reliable. An independent insurance agent works with many insurance companies. They can tell you which one is a good fit for your needs. You can find out which choices of home insurance companies you have and what your best alternatives are by contacting Homewood Insurance today.
