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Homeowners Insurance-Rates too high?

Posted by Mike Parsons
July 31, 2007 at 09:46 PM

If you live in a home and have been there for some time, there is a good chance you could reduce your homeowners or car insurance bill. When, comparing insurance rates, it is important to remember that all insurance companies are not created equally.

There are 5 common mistakes and/or misunderstandings most people have/make with thier homeowners insurance policies:

1. Make sure your home is insured equal to it's value- Insurance companies use a techinical software program to calculate the cost of reconstruction. There is a high percentage of homes that are under insured, and the number is only going to increase w/ the cost of building materials and construction costs on the rise. If you don't have the home insured to 100% of the reconstruction cost you may assume some of the expenses in the rebuilding process.

2. Water Back-Up Coverage is not included in most policies- This is a very common claim. Water backing up from sewer lines and water lines leading into the home is not covered under most standard contracts. This is an endorsement the homeowner would need to buy, additionally. A common situation would be you coming home to knee high water and find the root of the problem was sewage lines backing up. You call your insurance company only to find out that you don't have the endorsement needed to pay for damages.

3. Is Identify Theft Coverage Included? -Identity theft is becoming more and more common b/c of the technology age we live in. Many insurers offers full service to recover your good name, credit and any costs associated w/ restoring your life. "last year 10 million Americans spent an estimated 300 Million hours* recovering from identity theft."

4. Having insurance coverage with different insurers for auto and home.-Most companies will offer a favorable discount to an individual if they have coverage on their car and home with the same company.

5. Price isn't everything.-That super low payment you got from the internet is great, until you are rear-ended by the guy with no insurance. Your monthly savings with a minimum service company might look like peanuts compared to the damage you get stuck paying for in the end. Stick with reputable companies that will honor their obligations with customer service and little hassle, not minimum service companies that just allow you to stay legal.

If you are thinking about getting a new insurance policy, here are two companies that have done a good job for us and our clients in the past. Get a free no-hassle quote today! You can confirm that you have adequate coverage as well as probably reduce your premium in the process.

Nationwide Insurance (offers a free $10 gas card for the opportunity to give you a qoute)
Jim McGuire
P 614.888.9494
E mcguirj6@nationwide.com

Lauderbach & Eilber Insurance Company
Doug Christopher
P 614-459-6500
E dschristopher@lepropcas.com


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