5 Things You Need to Know About Home Insurance

5 Things You Need to Know About Home Insurance

Applying for home insurance is a necessity but it can often be a confusing and frustrating process. There’s a lot of information you need to know in order to choose the right policy that will offer you enough coverage at the best rates. Two common questions we hear are, “can I change my home insurance policy at any time?” and “do home insurance claims follow you?” 

Today, let’s address these and other frequently asked questions to help you make a more informed and sound decision regarding home insurance.

What Are the Policies Available?

There are different types of policies available, depending on your living situation and property type. For instance, there is a policy specifically for homeowners and another designated for tenants. There are also specialized policies for condos, rentals, and vacation properties. Each will come with a set of standard terms, but you can also customize certain aspects and increase coverage amounts depending on your needs. 

What is the Difference Between a Premium and Deductible?

The premium is the amount of money you will pay for the coverage. The deductible is the amount of money you will pay out of pocket before the insurance company will cover the rest of the damages when you have a claim.. The amount you’ll be required to pay will vary based on the terms outlined in the insurance policy. These two amounts directly impact the other. If you elect to have a higher deductible, you will be offered a lower premium and vice versa. 

How Are the Rates Determined?

The rate that you receive is directly related to your risk factor. To determine your level of risk, the insurance company will take into consideration things like your age, claims history, the location and the condition of your home, and other similar factors. You might also be eligible for discounted rates if you have recently made certain upgrades to your home or are willing to increase your deductible amount. It’s important to speak with an insurance professional who can help you determine what discounts are available to you. 

Do Home Insurance Claims Follow You?

Yes. If you decide to change insurance companies, they will know if you have filed a claim or not. Insurance companies share information through a database called the Habitational Insurance Tracking System (HITS). Any claims you have made in the past will remain in the database for between five and ten years, though this varies depending on the nature of the claim. 

Can I Change My Insurance Policy at Any Time?

There are many reasons why you might want to change your home insurance policy. If you’re moving homes, looking for a lower rate, or have paid your mortgage off in full, changing your policy or moving it to a different company can often be worthwhile. However, it’s important to read the fine print and speak to a professional first. Changing your insurance policy before the maturity date is an option but you might face a cancellation fee. If you wait until your renewal date, on the other hand, you can avoid any termination fees. To ensure you are making the right decision for your needs and finances, it’s best to have an insurance broker crunch the numbers for you. 

For all your home insurance needs, you can turn to Tanner Insurance for the best service and rates. Our team of friendly and dedicated insurance brokers are here to help you make a confident decision that is best suited to you. Our goal is to make the process an easy one that you can understand! Get in touch with us today to get started.

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