In today’s world, we tend to compare everything and everybody. Who’s got the better job? Who drive’s the better car? We even wonder who’s got the bigger, better house? If you can name it, as a society, we tend to compare it. Comparison, believe it or not, is extremely useful with home insurance in Houston Texas.
As an example, we’ll use the bigger, better home. First, you probably had to shop around for a mortgage lender who would give you a decent interest rate. Next, once you had your approval letter in hand, you started looking at houses that you liked and might qualify for. And you also had to “shop around” for home insurance.
What we call “shopping around” is actually formally known as comparison shopping. In fact, businessdictionary.com defines it as “the practice of comparing prices in advance of actually shopping in order to achieve the best deals and pricing on merchandise and services.”
Let’s go back to the bigger house example. Typically, more square footage equals more money, at least when it comes to real estate. You’ve likely already spent a fortune on your new home. It’s probably a good idea to find other areas where you can save money.
This is where comparison shopping can come in super handy. Most of us comparison shop for groceries, for clothes and even travel. Why not comparison shop for home insurance? As a consumer, comparison shopping allows you to get the biggest bang for your buck. Comparison shopping is such a powerful tool there are websites teaching marketers how to stop consumers from comparison shopping.
We, however, are going to teach you how to use comparison shopping to your advantage. Remember, comparison shopping is a process. Processes have steps and they take time and effort. Do them correctly and you may reap the rewards. Think saving major money.
A STEP-BY-STEP PROCESS
Skipping steps in any process can lead to less than stellar results. The same holds true with the insurance buying process.
Narrow your scope by choosing the right criteria. For instance, does the insurer provide coverage in my state? Does it offer policies within my budget? What coverages does the insurer offer? What coverages do I need? What are the terms of each policy?
Do your homework, literally. When looking to buy home insurance, it’s important to really know your property. Look at the property appraisal documents. See what similar properties are worth. Consider added features home insurance companies will give discounts for. Examples of these features include smoke detectors, security systems and even owning a dog! Who knew? Fido really is your four-legged friend. If you don’t have any of those things, you may be losing money.
Compare your coverage options. Make sure any quotes you receive are comparing like coverages. If Policy X has a lower monthly premium than Policy Y but has a higher deductible, it may not be less expensive. When it comes to coverage options, details matter.
Look at the home insurance rates. Several factors come into play to determine the rate you’ll pay for your home owners insurance policy. These factors include deductibles, coverage limits and, yes, the discounts. Make sure you read through the terms and conditions of any policy you’re considering. Again, DETAILS.MATTER.
QUALITY VS QUANTITY
The average homeowner’s insurance premium increased by 3.6% in 2015, according to a study by the National Association of Insurance Commissioners. These types of increases also increase the importance of comparison shopping.
Most experts agree you should aim for 3 to 5 quotes. Getting multiple quotes gives you the opportunity to negotiate with your preferred insurance company, gather information to ensure you are dealing with a fair and reputable insurer and to save money.
We will never have complete information when making decisions. However, continuously asking questions helps us narrow our choices and make more informed purchases.
Your home is your livelihood, protect it by getting a home insurance quote in Houston TX.
Next article: Price vs Perils