Need a Homeowner Insurance Company? 5 Tips for Comparing Rates

Homeowner’s insurance doesn’t just protect your home. It’s one of the most important things you can do to protect your family from financial distress in the event of a disaster. That said, trying to understand all of the moving pieces and differences in rates can make selecting the right homeowner insurance company feel daunting, to say the least.

Need a Homeowner Insurance Company? 5 Tips for Comparing Rates

1. Confirm Licenses

In Florida, it’s illegal to sell insurance without a license. That is why it’s so important to double-check that your agent is licensed. It’s also worthwhile to see if there have been any enforcement actions on the agent or agency. This information is easily found on the website of the Florida Chief Financial Officer.

2. Make Sure You’re Comparing Apples to Apples

Policies for homeowners’ insurance vary based on the company, so it’s important to make sure that you’re comparing like to like. Check the exclusions of each of the policies you’re comparing as well as limitations on items like jewelry, firearms, and the like.

3. Check Your Coverage Limits

When getting quotes to compare, it’s critical that you select a high enough coverage limit. Many insurance carriers still adhere to the 80/20 rule. In this unwritten “rule” an insurance carrier will cover all of the damage to the home so long as the insured purchased coverage that meets or exceeds 80% of the home’s value.

It’s also important to consider how much it would cost to rebuild your home. There are some counties in Florida that require that damage that exceeds 50% of the value of the home results in a total loss. If you live in one of those counties and disaster hits, you could be forced to rebuild your home from scratch.

4. Carefully Consider Additional Protections

Unfortunately, disaster can happen at any moment. If it’s been a while since you’ve last reviewed your home insurance policy, the costs of building supplies can be completely out of sync compared to your coverage. That’s why it’s important to consider additional coverages like inflation guard or Law & Ordinance coverage.

5. Strive for Quality

There are a number of things that play a role in your home insurance rates including your credit history, your home’s building materials, your zip code, and even your home’s features. While many things can drive up the cost of your premiums, there are also a lot of ways to lower your premiums without sacrificing the quality of your coverage.

For example, many insurance companies will offer discounts for things like home alarm systems, sprinkler systems, reinforced roofs, or storm shutters. Some companies also offer discounts for energy-efficient features.

These five steps are simple but can often be a monotonous and tedious task. This is especially true when it comes to comparison shopping the large number of insurance companies and agents serving Florida. We pride ourselves in helping you find home insurance quotes from “A” rated insurance companies quickly, and at affordable rates. Contact Absolute Choice Insurance to start working on your free quote!


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