|
T
Doing a Home Insurance Comparison is wise but not as easy as it sounds. To start with you should arm yourself with information about the industry and marketplace so you don't overpay or buy insurance you really don't need. the article below is a very good place to start in this regard. You will learn some surprinsly useful information about how the industry works and what you can do to take advatage of its quirks. Then take a look at the many reputable companies ready to give you home insurance price quotes and information online to make a well informed comparison.
One of the Secrets to Getting a Great Deal on Home Insurance By Andrea Luoni
As a consultant to business clients I get involved in their matters concerning home and auto insurance. Recently I have been tearing my hair out dealing with insurance agents and trying to get my clients the best deal on their home insurance. I have been tearing my hair out because agents consistently want to over insure my clients' homes.
• First, most of my clients seem to be over insured. This occurs because they have been with the same insurance company for years and with an inflation guard added to their home insurance the replacement cost has been going up each year even though building costs have been going back and forth - these inflation guards only go up. First item on the agenda is get at the real cost to rebuild the home. I have finally found a site that I think is pretty accurate if done correctly. See the site listed at the bottom of this article -- this site has a free cost estimator and the best part is that it is not sponsored by an insurance company and it's free.
• Second, many people believe they have a beautiful home -- I know, I do. But, that does not mean that it was built with gold in many cases. Most homes are built about the same in tract homes and a bit nicer in some custom areas. Many of the semi-custom homes have the extras in the bath, kitchen and flooring but not in the drywall, frame, air conditioning. You may see some extras in the wiring (pre-wired for sounds systems, alarms etc.) So don't inflate what you think your home will cost to rebuild. If you truly have a custom unique home then add this to the cost estimator - but think imported marble, elevators, glass walls, etc. Keep this in mind, insurance companies in most states DO NOT pay out the face amount of the policy, they pay to have the home rebuilt like it was before the loss. It is up to you to make sure it is not being over insured or under insured. If you over insure your home you will be paying premium for something you will never receive.
Before Starting a Home Insurance Comparison
I have talked with many spec-home builders and when I give them what the replacement cost is for what some insurance companies come up with they laugh -- saying it would never cost that much. Think about it this way too. If a tract home builder can sell the homes for $600,000 could the cost be more to rebuild that same home? What is the cost of the land? The land will not burn in a fire, it will still be there. Do you need to do excavation again? Do you need a new set of blueprints? You probably will need some modification due to changes in codes so you need some wiggle room in the policy. But, be careful not to over insure. Again, I like the cost estimator mentioned above it sounds about in line - I ran my home and some of my clients' homes through it and minus a few costs, like excavation, excessive builder mark ups it seemed pretty reasonable.
• Third, look for the right endorsement -- the best is full guaranteed replacement cost -- which means what ever it takes the insurance carrier will rebuild the home. This is great but many carriers that still have this then hike up the replacement cost of the home and will not insure it for less than their estimator and it is usually very high. So another to look at is 125% or 150% then obtain your estimated replacement cost and factor the endorsement into it and you should be fine. Don't forget to review it every so many years and adjust it - usually down because many slap on the inflation guard as a matter of policy and then it gets too high and most agents don't lower it unless you ask.
Keep in mind, an agent is great to work with you need the guidance but they are paid many times in commission so the more you pay the more they make. I am appalled at how may agents start with a reasonable replacement cost and then start changing the figure up ward along with the cost. You are wise to remember this when looking at your insurance, an outside consultant not tied to any insurance carrier, although few, are available to guide you through the process. Free cost estimator site: http://www.building-cost.net
Andrea Luoni, President/Consultant/CEO RateCraft: http://www.RateCraft.net http://www.RateCraft.com Ms. Luoni is the President of RateCraft operating in California and Colorado. She has been consulting business' and individuals for over 25 years in the management of their business and personal insurance portfolio and consistently reduces the cost by over 35%. Article Source: http://EzineArticles.com/?expert=Andrea_Luoni
---------------------
The art of home insurance comparison is something you can learn and the information above will be helpful. If your ready to move on to getting insurance quotes for comparison of the many home insurance companies, a good place to start is to scroll back up this page where you'll find a short list of reputable companies prepared to give you a competitive quotes and information to make a sound purchasing decision.
|
