4 Reasons to Consider Switching Homeowners Insurance Companies

Image source: Getty Images

Why stick with coverage you’re unhappy with when you can do better?

Key points

  • Homeowners insurance can be a big expense.
  • If you’re not satisfied with your insurer for any reason, it could pay to see about making a change.

Homeowners insurance may read like yet another bill you’re on the hook for paying. But actually, it’s a very important thing to have.

Without homeowners insurance, you could face untold out-of-pocket costs in the event of severe property damage. Or, you could risk having to shell out a lot of money if someone gets injured on your property and decides to initiate a lawsuit against you. Plus, having homeowners insurance is a prerequisite to getting a mortgage, so if you’re looking to finance a home, you’ll need to put coverage in place.

But the homeowners insurance company you start out with isn’t the company you have to commit to for life. It’s more than possible to switch insurers over time, and if these situations apply to you, that’s a route worth considering.

1. Your premium costs keep rising

Homeowners insurance premiums aren’t locked in for life the same way you can lock in a mortgage rate. Rather, your premium costs can rise over time, especially if you keep submitting claims against your policy.

Even if you don’t submit a lot of claims, if too many other property owners file claims with your insurance company, that company might make the decision to raise its rates across the board. But if your premium rates keep going up, it may be time to explore other options.

2. Your deductibles are too high

As a general rule, the higher your homeowners insurance deductibles, the lower your premiums are apt to be. But your insurance company may have a minimum deductible it offers that’s still higher than what you’d like it to be. If that’s the case, you should research other companies and see what their deductibles look like.

3. The customer service isn’t great

Often, property owners have to contact their homeowners insurance companies when they’re at their most vulnerable — such as when damage has occured to their homes and they need to navigate their next steps.

It’s important to have a homeowners insurance company that’s easy to reach. When damage occurs, you’ll want a claims adjuster to show up at your home and assess the situation quickly. If your homeowners insurance company subjects you to long wait times, then it may be time to find a company that offers a better customer service experience on a whole.

4. Your insurer won’t offer you a bundling discount

It’s common practice for insurance companies to offer a discount for purchasing more than one type of insurance, such as homeowners and auto. But if your insurer won’t offer that perk, it could make sense to see if there’s a company out there that is willing to give you a discount for bundling your policies.

Homeowners insurance is a big expense, and so it’s important to find a company that leaves you satisfied. If that’s not the case, you shouldn’t hesitate to shop around for a better deal with a new insurance company — one that better serves your needs or offers coverage at a more affordable price point.

Choosing the right homeowners insurance to protect you

No matter where you live, insuring your home is critical to protecting your finances in the event of an unexpected incident. Whether it’s a natural disaster, an accident, a break-in or something that causes damage to your property, you want to know you have the right homeowners insurance coverage for your situation.