There are many facets to owning a home in Oklahoma, but one of the most important is having proper homeowners insurance coverage. While most mortgage companies require this type of policy, having one in places ahead of time is simply a good way to protect your family against the unexpected.
Here are a few tips on finding affordable homeowners insurance in Oklahoma.
Get Quotes from Multiple Carriers
One of the first steps to securing property insurance is by getting quotes from multiple carriers. Premiums can vary wildly from one company to another, and making it a good idea to have figures to compare. In fact, some companies can be as much as a $1,000 more than their competition when it comes to quoting the same home! Thus, get multiple offers and then make a decision as to which is best for your needs.
Know Where Your Credit Stands
The vast majority of insurance carriers on Oklahoma utilize credit history as a risk factor when quoting premiums. If you are just purchasing a new home, you probably already know about where your financial profile stands. However, if you are purchasing coverage on a property you’ve owned for some time, it never hurts to take a quick look at your report before speaking with an agent. While the insurance team member who gives you a quote won’t see your actual score, their computer system they use does and will take that into account in your final figure.
Be Truthful About Your Claims History
Truthfulness when it comes to prior claims is crucial when shopping for homeowners insurance. If you’ve ever had a prior fire, theft, or other property claim, it is important to discuss it directly when getting a quote. Some companies will not take individuals with prior claims, which makes it very important to discuss this ahead of time.
It is also super vital to bring up any auto insurance claims you’ve had when shopping for a property policy. A handful of Oklahoma insurers actually take this into account when quoting premiums, so it is better to bring it up during the discussion phase instead of after a consumer report has been run.
And, don’t try to hide the fact that you’ve had previous claims. A special consumer report is run each time a person tries to purchase a new policy. This report contains all previous claims information connected with your social security number.
Consider Bundling Your Policies
If you’re looking for the best premium on homeowners insurance, consider bundling your policies. Most carriers offer a substantial discount for customers who have all their coverage with the same company. In fact, this figure can be as high as 15 to 20 percent in total. In addition, don’t be afraid to move your auto policies mid-term if you need property coverage right now. Your new agent will know how to make the transition simple and can even help you get in touch with your current company to cancel.
Choose the Right Deductible for Your Financial Needs
Homeowners insurance policies are similar to car insurance in that they require you to choose a deductible. Generally, the higher the deductible amount, the lower you will pay in premiums. Always select a number that would be easy for your family to pay if an incident ever occurs.
Oklahoma also does deductibles a little differently than most. For traditional claims—such as fire and theft—the deductible is set at a pre-determined figure at the time you purchase the policy. However, damage from wind and hail is usually a percentage of the value of the home.
Generally, this is easiest to explain utilizing an example. Pretend the value of your home is $200,000 and you have a $1,000 regular deductible. For wind and hail, your deductible is two percent of the value. If a large storm damages your home, the amount you pay out-of-pocket for repairs would be $4,000. In contrast, if a fire damages the building, you would only have to pay $1,000.
This is a facet to home insurance than many residents miss, so it important to really pay attention when gathering quotes.
Consider Earthquake Insurance
Currently, an increase in oilfield fracking has led to almost daily earthquakes in Oklahoma. While these instances are relatively minor, many homes have seen cracking walls and other related damage due to these incidents. Oklahoma insurance law calls for earthquake coverage to be a separate policy and not an addendum to the one for your property. However, premiums are usually under $100 for the year, making them well worth it.
Read Policy Wording Carefully
Reading the policy wording before signing the contract is also important. Some firms only cover roof damage for a set number of years before it become excluded. Others only offer actual cash value and not replacement cost. Understand that the contract is a legal document read all the fine print before taking the policy out.
Be Prepared for High Rates
If you’re moving here from another state, it is also important to brace yourself for paying higher rates than in other locations. The number of annual storms that hit the area generally contributes to a larger than normal figure for insurance losses, which is then translated into higher premiums for property coverage.
Searching for insurance coverage for your new home doesn’t have to be difficult. Keep the above mentioned tips in mind to make the experience as easy as possible.
Are you ready to find your new home? Movoto can help. Our easy-to-use website offers all kinds of information about properties, schools, tax rates, and much more. We can even help get you in touch with a licensed local realtor. Sign up today to learn more.
2 Point Highlight
If you’re looking for the best premium on homeowners insurance, consider bundling your policies.
One of the first steps to securing property insurance is by getting quotes from multiple carriers.
