There are many things you need to know about home insurance

Some of the things you need to know about home insurance include picking the right insurer and getting the proper coverage.  Your marital status, your age, your sex, and what neighborhood you live in all contribute to an insurer’s prediction of whether you’ll file a claim.  It comes down to one word: risk. To an insurance company, you are a collection of risks.  It’s true, Insurers will not only judge you on your record, but on your demographic too.

Say, for example, you are a homeowner who lives in a rural region far from fire stations, or who lives in a coastal area prone to storms, people in these types of situations have been shown to file more claims, and their claims tend to be more expensive. So if you are in a similar situation you are judged to be a higher risk.

Not all Florida home insurance providers  price the same risks identically.

Even though home insurance is highly regulated in Florida, many home insurance companies still focus on certain markets and avoid other since they operate as competitive businesses. Of course, some operate their businesses more efficiently than others, so this can pass on the savings to consumers.

So even if your insurer rewards long-time customers, you still may be able to save hundreds of dollars a year by shopping regularly.  Sometimes a great quote from a new carrier may trump the loyalty card.

Here are a few things to keep in mind when looking for homeowners insurance.

      • Remember, to an insurer, you’re basically a set of risks and you can’t change who you are. An insurer will base its premium (or its decision to insure you at all) on your “risk factors,” which can include how you live, your occupation, what you own, and of course who you are.
      •  You will want to know your home’s value. It is essential to establish your home’s replacement cost, before you choose a policy. A local builder should be able to provide the best estimate.
      •  Keep in mind that Insurers differ. Even though you may get the same product, the companies can price differently, just like with anything else you buy. So remember, you can save money by comparison shopping.
      •  Don’t always just look at price. You will want to research the insurer’s financial stability as well as its record for claims service. Keep in mind that a low price is not a bargain if an insurer takes forever to service your claim.
      •  You should demand discounts.  To reward behavior that reduce risk, Insurers will provide discounts. Sometimes you can save money by just asking.
      •  Request more then just the basics. You should understand that a basic homeowners policy might not promise to entirely replace your home.
      • You will want to prepare before you have to file a claim. A way you can do this is by keeping your policy updated. You will want to reread it before you file a claim so there are no surprises.
      • At claims time, your insurer may not always be your friend. Your job is to prove your losses so you get what you need. Your insurer’s job is to restore you financially. Your idea of fair compensation may not match that of your insurer.