When was the last time you shopped your homeowners insurance?
Honestly, when was the last time you shopped your homeowners insurance? If you are like most of my new clients, the answer is I don’t know. If your homeowners insurance has been with the same insurance company for 2 years, it’s time to get some new homeowners insurance quotes. Chances are you can obtain the same or better coverage at a much lower price. Today shopping your insurance has never been easier. Technology now allows us to do pretty much everything, including buying insurance, either online or over the phone.
Why do I need to shop my homeowners insurance?
Money. Plain and simple. Homeowners insurance rates are set by a number of factors including your claim history, credit score and state you live in. While these factors can certainly effect the amount you will pay in monthly premiums-they only affect the price you pay with the company you ultimately buy it from. It’s simple supply and demand. Insurance companies are not Sunday schools. They are also not always the bad guy and out to screw you, regardless of what you think. They are however a business just like any other and their reason for being in business is to make money. It’s supply and demand. Insurance companies are required to have reserves. Reserves are an amount of money, determined by potential losses, that an insurance company is required to have at all times to pay claims. The more houses they insure the more reserves they are required to have. With this in mind, insurance companies are constantly raising and lowering rates. When was the last time your homeowners insurance with State Farm went down? What about Farm Bureau? Shelter? Allstate? Nationwide? Progressive? The answer almost always is never. Does it mean that the companies mentioned above provide you with terrible customer service? Of course not. Does it mean they do a bad job handling your claim? Of course not. Does it mean that your agent doesn’t know what he is doing? Of course not. Does it mean that one of these companies can offer you the same thing or better than what you currently have at a lower price? ABSOLUTELY. Have you been paying to much? ABSOLUTELY. Does it mean you need to shop your insurance immediately? ABSOLUTELY.
How do I shop my homeowners insurance?
The first thing you need to do is call your agent and tell them to email you your loss runs for the last five years along with your dec page that clearly list your annual premiums. You will unfortunately be asked why. Probably. The reason many agents ask this is because they know they are about to loose you as a customer. A good response to this would be to simply say “I’m just checking to make sure I’m getting the best deal.’ Look insurance agents are people too and have feelings. This is after all how they feed their families. So every customer is important to their bottom line. Nobody in any business wants to loose a customer. But I would bet all the money in the world that if you walked into a store and the same coat had 2 different prices, you would by the cheapest one. Why wouldn’t you buy the cheapest homeowners insurance if it gave you the same coverage or better? Obviously, most of us would never buy something online from a site where we could by the same thing for $100 less on another site. Once you have received all of the information you requested simply do a google search for things like cheap homeowners insurance, low cost homeowners insurance, affordable home owners insurance, and cheap homeowners rates. This should give you several different insurance agencies to choose from. The goal here is to be able to compare homeowners quotes from many different companies. I’d recommend you choose two. Call both agencies and tell them you would like to get a homeowners quote from 3 different insurance companies. Make sure to tell them you want the same coverages you have now or better. It’s as simple as that. My guess is you will be switching insurance companies and saving some money.
As always if your premiums aren’t free your probably paying too much.
Matthew Glass Agency