How to shop for home insurance

Hey Everyone – Tony Smith here again with Chrinco.com and today we’re talking about why people shop their insurance.

Did you know that a recent study found that 41% of people who are shopping their insurance are looking for a better price? In fact, price outranked Customer Service, Claim Handling, and Coverages…. among other things.

While price is definitely an important factor when shopping your insurance – I want to caution you about using price as your primary deciding factor. You see insurance is a non-tangible item. It’s not like purchasing a new pair of shoes or a new suit. You can't see it, you can’t touch it and so it gives the impression that insurance is all the same. And to be fair, it can feel like they’re all the same too coming out of your bank account…..that is until you have a claim. And if you have a trimmed up policy at the time of a claim – you may be out of pocket tens of thousands of dollars. On the other hand you don’t want to waste money on insurance by being overinsured and covering things you don’t even need coverage for.

So what should you do?

If I were shopping for insurance, this is what I’d do: First, I’d ask the insurance company for two quotes. The best price they can give and then their recommended coverages. Second, I’d ask for them to explain the differences between the two quotes. You see in that conversation, you’ll be able to determine whether you want that coverage or not. This conversation could also open doors to things that perhaps you haven’t thought of. And lastly, once I’ve determined the coverages I need, I’d ask if the company they’re quoting has any policy exclusions that I should know about. Examples of this could be animal liability, no hurricane coverage for screen enclosures, no liability coverage for slides or bounce houses, etc etc.

Using this system for getting quotes ensures that you’ll get the best priced carrier out of the subset of carriers the insurance agency represents and it also ensures you get the coverages you need.

So there you have it ladies and gentlemen – insurance shopping tips in roughly 2 minutes – Chrinco.com – insurance simplified.