6 Questions to Ask Before You Switch Your Home Insurance

Switching your home insurance policy can be a very stressful time if you do not approach the task correctly. You want to make sure you get the policy that you need to cover everything while offering a reasonable price that does not take a huge chunk out of your pocketbook.

The most important thing to remember is to go to an online comparison site and let them help you sort through all the possibilities. The AI-driven site will take some information from you and then search through the database of partner sites that can offer you what you want. From there, all you need to do is read through each and every offer and pick the one that suits you the best.

Before you get the idea that this is an easy process, we need to go over 6 questions to ask before you switch your home insurance to make sure that you get what you need and get the best bang for your buck.

1. Why do you need to switch your home insurance? You need to know why you want to change your home insurance policy. If it is to get a lower price, upgrade to cover added items, or if you moved and need a more local insurance agent, it is imperative to know why before you start filling out any applications.
2. What are your absolute requirements with your home and contents policy? Another question that you need to answer is what are the minimum requirements that you have. If you have a home valued at $750K, you would not want to have a policy that only covers $500k. The same goes for your valuables. You need to have an itemized list of all the items you want to be covered so you have an overall number to look at.
3. How can you compare the insurance carriers in your area? One of the most important steps in the process will be to compare as many insurance carriers as possible. Take advantage of the online platform discussed above to compare home and contents insurance. It is essential when doing this that you do not go with the cheapest offer until you check the details. You must always make sure the details match your needs before comparing the prices.
4. What will it cost to make a switch? Switching home insurance carriers can sometimes cost you more than expected, which is why you need to ask. If you are still in the middle of a contract with your current agent, you may either lose the money you have paid towards premiums, or if you are going by the month, you may have to pay the remainder up-front. Always check into the contract before trying to close a policy early.
5. Have you talked to your current provider? The insurance industry is a highly competitive one, so many insurance agents will find a way to give you discounts to keep your business. Unless you have some serious issues with your current agents, you should take the time to chat with them and see what they can do for you.
6. Have you thought ahead to future needs? The contract will likely stay in effect for a year, so before deciding on a policy, think ahead. If you are planning a complete remodel in a month, you will want to upgrade your insurance policy to cover it even before you have it built. This will ensure that if something happens during the build, you will be covered and get enough money to cover the expenses you have already put into the project.

You may have some other questions that have come up, so be sure to add them to the list. These six questions are just basic ones that you need to ask yourself before changing your home and contents insurance policy. It is not something you should rush in to because that is how you get stuck in a contract that is not beneficial for you.