What if…
Chances are you already have health and car insurance. Which means there’s no need to sell you on how important having insurance is. Homeowner’s insurance is very important when owning a home. More importantly, a reputable homeowner’s insurance agent is even more necessary since they will provide you with the coverage for your largest investment and your home!
So let’s dive straight into the tips on finding the right homeowner’s insurance agent…
Do You Know A Guy?
Ask friends, family, co-workers, and your Buyer’s Agent who they work with. Or jump online and search for agents in your area.
Easy, right?
Well, after you’ve found at least 3 (even if I they’re referrals), you’ll still want to do some detective work to learn more about them and their company. Here’s how…
Check Online Ratings
If they have poor rankings on business rating directories, don’t offer products that you need or if they work with providers that you don’t like, cross them off your list.
What’s Your Credentials?
A good insurance agent should belong to a number of professional boards and should hold professional accreditations. So ask them for that information.
Let’s Talk
Set up a face-to-face meeting to discuss your insurance needs. And ask these questions during it:
1. Is your company in good financial shape?
You don’t want to buy insurance today. And find out the next month the company closed doors. So check them out by using the Consumer Information Source tab at www.NAIC.com.
2. Should I buy a policy that cover cost of rebuilding?
Many homeowners’ policies will only pay for the cost of your home at the time the policy was purchased. Due to inflation and many other factors, the cost to actually replace your future home will rise.
So ask about a replacement value policy. Plus, have them explain the difference between the various types of policies available to you as well as the consequences that could come with each choice.
3. Is bundling a better option?
Most companies will give you a discount to bundled auto, home, and life insurance policies with them. So ask how much you could get.
4. What are the advantages/disadvantages of a High Deductible Policy?
Having a high deductible policy may save you a lot of money. But you need to know if the coverage is worth it. So have the agent explain the positives and negatives of having a high deductible.
5. Do I need flood coverage?
Most policies will cover water damage, but many don’t cover flood damage without a specific flood or disaster policy in effect. So ask the agent to explain the difference, and the advantages of carrying flood or disaster insurance.
6. Will my policy include replacement value for my possessions?
It’s a good idea to get a policy that covers the cost of replacing your possessions in the event of a claim.
7. Do I need an Umbrella Policy?
Have them explain the benefits of doing so because the extra insurance could protect you if something devastating happens that your regular policy won’t cover.
8. Is there a limit on payments for valuables?
If you have a collection of artwork, expensive jewelry, or something else that is very valuable, ask your agent if such things would be covered under your regular homeowner’s policy or if you need additional coverage.
9. What are the advantages/disadvantages of installing a Home Security System?
Many insurance companies will offer a discounted rate if you install a home security system. You could also get a discount for window locks, deadbolts, and other security features. Ask the agent if these discounts are available to you and find out exactly what you need to do to lower your payments without affecting the coverage.
10. How do I file a claim?
Does the company make it difficult to collect, or are they easy to work with? Do they make the paperwork simple, or do you have to jump through a lot of hoops? Get timetables and make the agent explain the procedure in detail.
Because you don’t want to wait a long time to get your money if something happens.
Well, there you have it:
Tips on finding the right homeowner’s insurance agent. Along with the exact questions to ask and a website to help with your detective work.
The views and opinions expressed on this web site are soley those of the original authors and other contributors. This is not a commitment to lend. All rates, fees and loan terms are subject to a formal loan application, credit risk, appraisal evaluation and other lending criteria. Programs, rates, terms and conditions are subject to change without notice. Other restrictions may apply.