Common Misconceptions About Changing Homeowners Insurance Companies

Re-shopping is solely to obtain lower policy rates.

Re-shopping for homes insurance isn't always about finding a lower rate; you may also need to re-shop if your policy isn't being renewed or if a particular hazard is being excluded from coverage in the forthcoming policy term.

Because of the industry's diminishing profit margins, corporations have been forced to take on less risk in places where disasters or insured losses are more common than in other areas. California, for example, has several insurance firms that will either exclude wildfire damage from coverage or will no longer provide coverage for properties in wildfire-prone regions. Exclusions due to wind and hail in coastal areas and roof exclusions are not unheard of.

You should compare your coverage with other policies to see if you can find more comprehensive protection elsewhere. Let's say you were recently notified of a policy exclusion at renewal, or you discover that your home is insured for less than its replacement cost; you should consult an insurance professional. You will almost certainly save money if you spend a little more money to guarantee that your home is completely protected.

Maintaining a relationship with the same company sometimes results in lower rates.

A widespread myth regarding insurance is that maintaining a relationship with the same provider lowers prices. Some of the time, this may be the case. Perhaps you've been a client for a long time and have earned a loyalty discount or a multi-policy discount for bundling your home and vehicle insurance policies. However, it is possible that the discounts you are receiving are being negated by the high initial premium you are paying for coverage.

It takes an excessive amount of time to go shopping again.

In a survey of homeowners insurance customers last year, we discovered that the most common reason policyholders do not re-shop is that they believe it will take too much time. That couldn't be further from the truth, as evidenced by the facts. If you have the declarations page from your existing policy available, re-shopping can be completed in as little as five minutes.