Great homeowners insurance Hawaii packages do not need to be hard to find; you just have to know where to look. Here are a few tips on finding the best deal for homeowners insurance in the Aloha State.
What Does Homeowners Insurance Need to Protect?
The first step in attaining the best insurance package is to understand the exact nature of the protection that you need. You also need to know what homeowners insurance protects and what it does not. According to industry watchdog Marshall & Swift/Boeckh, 60 percent of homes in the United States are under insured. The right package not only protects against damage to the home, but also accidents within it. If you have expensive assets, then you may need separate clauses for those items. There are different levels of homeowners insurance for different levels of necessary coverage.
What Are the Different Levels of Coverage?
HO-2 is the basic level of coverage that protects your home from 16 specific hazards. If the hazards are not named, then they are not covered under the package. This is known as a named perils policy. You may need to supplement an HO-2 package with another type of homeowners insurance.
HO-3 is a broader policy that whitelists protection of all hazards unless they are specifically blacklisted in the policy. The HO-3 level of insurance covers more than the HO-2 for the property, but not for your contents. Your contents are only protected from the 16 hazards that are named in the HO-2 policy. HO-3 is also known as an open perils policy. If you need further protection for your contents as well as your property, then the HO-5 property is a good choice for you. The HO-6 policy is meant specifically for condos and their special considerations. Finally, the HO-8 policy offers cash value instead of replacement value for damage, and is therefore used for older homes. Make sure that you are using the right kind of homeowners insurance for your particular needs.
How Do I Pick the Best Policy for My Needs?
Although there may be some adequate local policies in Hawaii, they will be hard pressed to match the service of a reputable national insurance company, especially with the high prices of Hawaii properties. If you want to consider a local insurance company, make sure they have immediate access to emergency vehicles. In Hawaii, you should also make sure that your homeowners insurance company has rolling claims centers, because you may not be able to get relief anywhere else on an island. Instantaneous access to generators, mobile workstations, and telecommunications connections can make all of the difference when power goes out in a certain area or an unexpected disaster hits.
Should I Narrow Down a Shortlist?
Once you can detail all of the emergency features and coverages that you will need, it is time to call a few insurance agents to see what is available on the market. You can also find out exactly how these companies will perform for you by checking the online reviews of those companies. You also need to pick a company that you know will be financially viable for a long time. When you pick an insurance company, you should pick it for the long term. A.M. Best focuses on reporting the financial strength of insurance companies, but Standard and Poor’s and Moody’s are two other rating agencies with a great reputation for discerning quality.
How Do I Take Stock of My Home?
Once you narrow down your shortlist, you will need to take stock of your house in order to determine the best program for you from your shortlist. The criteria that you should look at includes the square footage of your home, your bedroom/bathroom count, your roofing and insulation materials, the age of the home, the condition of any outbuildings, location in a floodplain, the appraisal report, the inspection report, and the inventory of your contents.
You should also see which insurance companies will give you discounts for the safety measures that you have already put into place. Certain upgrades such as energy efficient insulation, solar powered backup generators, alarms or security systems, and deadbolt locks are just a few of the upgrades that an insurance company might consider. Each upgrade that you implement should lower the risk of damage, theft, or accidents around the home, in turn lowering your monthly premium or your deductible.
How Do I Know That I Have Found the Best Deal?
The truth is that you will never find the best deal, because the insurance industry is one of the most competitive industries in the world. If you review your policy against the market each year, you will probably find a new program that offers more in some areas than the program that you currently have. Pro insurance agents will tell you to review your policy at least once a year, and do not ever be afraid to switch companies if someone else is offering something better. In a highly competitive, high value market like Hawaii, you may even want to check your policy twice a year.
2 Point Highlight
Instantaneous access to generators, mobile workstations, and telecommunications connections can make all of the difference when power goes out in a certain area or an unexpected disaster hits.
The criteria that you should look at includes the square footage of your home, your bedroom/bathroom count, your roofing and insulation materials, the age of the home, the condition of any outbuildings, location in a floodplain, the appraisal report, the inspection report, and the inventory of your contents.
