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The High Cost of Cheap Homeowners Insurance
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What are the downfalls to cheap homeowners insurance?
The High Cost of Cheap Homeowners Insurance
Most people consider buying insurance little more than a necessary evil, but there is often a high cost associated with the purchase of cheap homeowners insurance. Learn how to save money while still getting the right coverage by avoiding these common pitfalls:
- Fly-by-Night Companies. Work with a reputable insurance provider with a good rating of at least a B or above. Avoid companies with a rating below B, but don't assume a more recognized name is automatically better. Many small insurance companies have great financials, so take the time to compare by contacting the insurance rating firms below:
- A.M. Best Company (908) 439-2200
- Fitch Inc. (800) 753-4824
- Moody's Investor Service (212) 553-0377
- Standard & Poor's (212) 438-2000
- Insufficient Assistance. While every insurance company provides some level of assistance, service can be inconsistent or simply inconvenient when working with some low-cost providers. Check the satisfaction rating of the company prior to making a final decision to determine if they provide adequate assistance and timely response in the event of a claim.
- Inability to Provide Higher Risk Coverage. Many homeowners enjoy the convenience of having all policies in one place, which isn't always possible with some providers. If you have high-risk properties, rental real estate or other hard-to-cover needs, be sure to ask in advance whether or not they are able and willing to write different types of policies.
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| George Sayour |
