What You Risk With a Cheap Homeowner Insurance Quote – What You’re Not Being Told

What You Risk With a Cheap Homeowner Insurance Quote – What You’re Not Being Told – A bad deal is a cheap quote that gives you less than you’re entitled to. If you come across a homeowners’ insurance company that seems to be really cheap, ask them the following questions to establish just what they are offering you:
1. What kinds of benefits and discounts do they offer you? The way insurance is designed, there are slim, if next to none, chances that you will be cashing in on your premiums with a claim. Many times, you may pay for many years without ever asking for compensation. The insurance industry acknowledges this, and as a small compensation, is willing to give you discounts and benefits every 6 months or every year. They can come in the form of gifts or actual discounts on your premiums. If they are not offering you these, but are offering you very low premiums you should check on what kinds of benefits you would get if you were to take up a policy with them.
2. What kind of customer service will you get? Since payroll is where most of the costs of any company lie, they may be offering you low premiums because they have cut costs there by reducing the number of employees. This means that it will be hard for you to get any attention when you need it. Telephone and email service may also be a problem because they don’t have agents sitting on the other side of the waiting to attend to customers. This can have serious implications if you have a crisis.
3. How far from out of town are they? With the advent of the internet, companies don’t have to have a local presence any more. But you want to be near you homeowners insurance provider because if you ever need to be compensated, you will need to interact with them a lot. An insurance company could be offering very low premiums because they are located out of state and cutting the costs of a brick and mortar office near you. They will usually take days or even weeks to send an agent out to come and meet you, and any special needs that you have may require you to travel to their office.
4. What is their litigation history like? Some insurance companies that are very cheap have a history of taking a long time to compensate clients. They will hold on to money for a long time, all the while investing it so that they make money off clients’ money. They will usually have litigation departments that are very busy. It can be devastating to be given the run-around by your insurance company. Imagine that you have lost your home and an insurance company that you have consistently paid doesn’t refund you in good time.
Insurance companies usually to stay within a certain competitive range in pricing. Familiarize yourself with this range in your market. If you see a company that’s extremely cheap and out of the range, don’t take up a policy with them before checking them out.
It’s very important that you keep your homeowners premiums low, but make sure that you’re not compromising your greatest asset by not investigating carefully the company that you take insurance with.