You know you have to have homeowners insurance and with prices on the rise as well as changes in coverage that insurance companies are implementing, the following tips may be helpful when shopping for insurance.
Buyer Beware
Have a home disclosure report listing any problems with the house. Insurance
companies are leery if the report includes any water or structural damage.
Look for "guaranteed replacement" in your insurance policy. Some
insurance companies have discontinued or made changes to this provision that
had guaranteed that if your house was destroyed it would be rebuilt. Insurance
companies have also begun setting caps on payouts based on a percentage of
the face value of the policy.
Maintain A Good Credit Rating
Coverage at the price you can afford may be affected by a bad credit report
as insurance companies view a credit report as an indicator of potential future
losses. Check your credit report for errors and immediately notify the credit
bureau of any errors. Have the needed documents to support your claim.
Shop Around
Look for a consumer friendly company. Consumer Reports offers a list of insurance
companies that have gotten great reviews from consumers.
Watch Your Claims
Insurance companies track the number of claims you submit. They may choose
to not renew your policy if you have made several claims. If your claim is
$200 or less than your deductible, it might be wise pay it out of pocket instead
of filing a claim. Keep as clean a claim record as possible reducing the amount
of premium increases and knowing you will be insured if a catastrophe strikes.
CLUE Reports
Claim reports are listed on the "Comprehensive Loss Underwriting Exchange"
and are tracked by insurance companies based on the address. These reports
list the types, dates and amount paid of claims submitted on your property.
Insurance companies use this as a basis for potential risks. You can get a
CLUE report on your property. There is a fee that ranges from $9.00 to $19.95
and shows information on claims that have been submitted and allows you to
correct any errors that may affect your ability to ensure good coverage.
As home values increase, keep a check on your policy and make sure that your
coverage keeps up with your appreciation. Inform your agent if you have made
any improvements or you may be underinsured if an emergency occurs.
