When it comes to homeowners insurance Indiana buyers have a lot of choices to make. Some deals appear great on the surface, but once you dig down deep, the waters get a little murkier for Indiana home buyers. The information below will help you make accurate comparisons in order to find the deal that is truly best to meet your needs as an Indiana home owner.
Do You Understand Your Coverage Needs?
Indiana homeowners face different risks than those in California, Colorado, or Gulf Coast states. You need to make sure you understand what those needs are and insure your home accordingly. For instance, earthquakes are not a major concern for most Indiana homeowners. Tornadoes, on the other hand, are a much bigger concern for you as tornadoes are far more common in Indiana than they are in California.
What this means is that you need to buy insurance for where you live and the risks that are most likely to affect your home. Working with a local, or at the very least regional agent or agency, will help you get more personalized advice about your actual coverage needs. Otherwise you may find yourself paying for coverage types that aren’t exactly necessary and with coverage gaps in areas that are a much bigger threat to your home.
How Do You Make Apples to Apples Comparisons Between Policies?
Many times companies offer really inexpensive basic homeowners insurance policies. These policies offer only the most basic coverage and have higher deductibles. These look like bargains. At first glance, they may even appear very similar to the other plans you’re comparing them too.
You must dig down deep and really understand what is covered and what is excluded from any plans you are comparing. This is so you can make apples to apples comparisons of the policies in question.
Should You Ask for Discounts on Your Indiana Homeowners Insurance?
You will be amazed at the number of discounts that are available to Indiana homeowners, but only for those who ask for them. Insurance companies are in business to make money. Certain actions you take can minimize their risks of needing to pay a claim. These are some of the reasons homeowner’s insurance companies will offer discounts to customers:
- Bundling policies – Buying two or more policies from the same company.
- Customer loyalty – Some insurance companies offer discounts to customers who have been with them for a certain number of years.
- Home improvement discounts – Making certain home improvements, such as updating the electrical, installing monitored security and fire monitoring, installing storm shutters, adding a new roof, etc. can reduce the risks of certain events taking place in your home and most insurance companies will offer discounts on these improvements.
- Gated community discount – Gated communities are often less attractive to thieves making them a lower risk of home invasions. Insurance companies will reward you for choosing gated communities by offering deep discounts – between five and 20 percent according to Bank Rate.
The thing about all these discounts, and more, is that they aren’t always advertised. You generally have to ask for them in order to get them. While you’re at it, ask about specific home improvements that can help you save and which ones offer the best return on investment.
Have You Kept Your Credit Clean?
The Insurance Information Institute suggests that a good credit rating can result in bigger and better discounts when it comes to homeowners insurance. The good news for recent home buyers is that you’ve likely been working to get your credit record clean in order to secure financing for your home. Most people don’t even realize they’re getting this particular discount unless they fail to qualify for it. In those instances, most states require insurance companies to let homeowners know they’re receiving higher rates due to information in their credit reports.
To Buy Flood Insurance or Not?
People living in high risk flood plains are required to purchase flood insurance if they have a mortgage from a Federal Deposit Insurance Corporation (FDIC) insured financial institution. Those who live outside of high risk areas are not required to purchase this insurance, though it is highly recommended. Even as little as half an inch of water inside your home can have devastating financial consequences.
Many people living outside of high risk areas feel that they are in the clear. However, the National Flood Insurance Program (NFIP) states that more than 20 percent of all NFIP claims originate outside of designated high-risk flood areas.
If the purpose of insurance for you and your family is mitigating risks, then flood insurance is a good investment. This is especially true for people living outside the high-risk area who can often get deeply discounted rates on their flood insurance.
One thing everyone needs to know about flood insurance is that unless you’re purchasing the insurance as a new home owner or when refinancing your home, there is a 30-day window before the policy takes effect. This means you won’t be protected from floods that occur within the first 30 days after you purchase the policy. If you plan to purchase flood insurance, the time is now, and not when disaster appears likely.
Do You Understand Exclusions?
Many homeowners do not find out until after the fact that their homeowner’s insurance policies have exclusions that are potentially costly. These exclusions in coverage can often be purchased as add-on policies or riders. Some that may be of particular interest to Indiana homeowners are the exclusions against dog bites. Some insurance companies exclude all dog breeds while others exclude specific dog breeds that are considered to be aggressive dogs. The list includes: Akita, Doberman Pinscher, Rottweiler, Chow, German Shepherd, Pit Bull, Husky, and other breeds.
Other exclusions to be aware of are limits on high value items. In this case, high value items like furs, guns, jewelry, antiques, electronic equipment, and computers are often limited to $1,000 of coverage per item type as opposed to per item. This means that if you have a nice collection of art, furs, or stereo equipment, you’ll need to purchase a rider for each type of item if you want full coverage.
Understanding the exclusions like those above and liability exclusions for Indiana homeowners who have swimming pools, trampolines, and treehouses, can help you accommodate those exclusions with additional coverage that ensures you have the right insurance to meet your needs.
2 Point Highlight
Working with a local, or at the very least regional agent or agency, will help you get more personalized advice about your actual coverage needs.
You will be amazed at the number of discounts that are available to Indiana homeowners, but only for those who ask for them.
