Switching your home insurance to a new carrier may be a task you want to leave for another day. You know, though, that it needs to be done sooner rather than later. If you are changing because of the cost, you may want to talk to your current carrier and see if they can work out a better deal to keep your business.
If not, or if you feel it is time to change to a better company, you will need to ask yourself 5 questions. You will also have to find the answers to those questions before attempting to switch over. So, let’s get to it
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1) Why Do You Want To Change?
Are you unhappy with your current provider, or did you sell the house on the policy and buy a new one. You would want to switch home insurance policies or providers for many reasons. The answer to the questions lies within you; only you can answer them. That answer will help direct you in the right direction as long as you follow it. If it is a simple matter of upgrading or downgrading your policy, pick up the phone and give your insurance carrier a call.
You may even be able to switch from your current policy to one that is better suited for you and get a little money credited to your account for the overpayment on the policy that you stopped. Not all companies will do this, and some will charge you a fee, but just go with the flow and work something out with them. If not, take your money somewhere else.
2) How Do You Choose A New Home Insurance Plan?
The easiest way to accomplish this task is to go to an online platform, like iSelect, that will take some of your basic information and run it through their database of partners that can get you a good home insurance policy at a great price. The computer’s AI system can give you offers within minutes, which is much faster than what you could expect to do with a phone and some numbers to call.
After the offers are in front of you, all that is required is for you to read through them and pick the best offer that fits your needs. It must also be within your budget, but never assume that the cheapest policy is the best because no insurance company is created equally. Each carrier will have different versions of an offer, some that may pertain to you, but others may not.
3) What Coverage Will You Get Out Of The New Policy?
As with all types of insurance, numerous house and contents insurance offers exist to go over. The choice is up to you because you are the person that knows what you need and what you want. The coverage itself should be an easy thing to figure out, but you need to do a little research about the area you are in, even if you have lived in the location your entire life, and see if any significant disasters have affected the area you live in.
If you find that earthquakes are a common occurrence that causes millions of dollars in damage every year, you will want to read through your contract and ensure that coverage against earthquakes is listed on it and that it has not been excluded. If it is not listed as one of the covered natural disasters, ask to have it put in. This must be in writing to cover both of you against lawsuits.
4) How Much Will It Cost To Switch?
You need to figure out what the total cost of switching will be. Remember that when you first get a home and contents policy, you will have a waiting period attached to it. This is a period of time in which you would not have coverage if something should happen.
If possible, it may be a good idea to keep your old policy until the new one kicks in. That is why you should start looking before your current policy ends. Always be proactive rather than reactive.
5) Is it Worth Switching, Or Should You Keep Your Current One?
Now is when you need to decide based on your research, offers, and needs. If it costs you more money than it is worth to switch, then just renew your policy and make adjustments that include any changes in your life.
On the other hand, if you would end up saving money with a new insurance provider, you can switch over and not feel bad about it. You do not owe anyone your business; if they want it, they need to fight for it. If your current insurance carrier wants to keep your business, they will do what they can to work with you.
The number one thing that you should keep in mind when you are planning to switch home insurance policies is to ask questions. The only dumb question is the one that you do not ask. If the agent is not willing to answer your questions, or if they are too hard to get ahold of to even ask, you need to switch immediately.