Homeowners insurance does a lot more than just replace the stuff you own in an emergency; it also provides protection from certain liability situations. If a storm damages your home or if a visitor trips and falls on your property – you’re protected if you have the right type of home insurance plan. But if your homeowners policy has been continuously renewed with the same insurer for several years, you may be paying a lot more than the standard rate.
How Often Should You Change Your Home Insurance Plan?
Your personal situation constantly changes throughout the year, and even from day to day. These changes can affect your homeowners insurance rates, which is why it’s important to re-shop your policy every year.
How to Go About Switching Your Home Insurance Plan
The best way to go about re-shopping for insurance is by using the services of a broker or an independent agent who is connected to several insurance companies in the market. But remember that re-shopping for insurance is not always about getting lower rates; it can also be to get better or wider coverage. For example, you could opt for coverage for a peril or risk which is not included in your present policy.
Will Your Premium Increase When You Change Your Provider?
Some people think continuing with the same insurance company will result in lower rates over a period of time. But this isn’t always true. Although some insurers offer a loyalty discount to long-term customers, these discounts are often negated by high premiums. Given this, make sure to compare premiums every year or two and purchase a plan that offers the coverage you desire at a rate you think is fair.
The Bottom Line
People are usually hesitant to change their insurance provider because they wrongly assume that the process will take a lot of time. But this is not always the case. If you know the terms of your present insurance plan (perils covered, perils excluded and the premium paid by you), re-shopping for better coverage or a lower premium can be done in a matter of minutes!
