The Right Way to Compare House Insurance Policies

Dec 12, 2017 · 2 min read

Tenacity and patience are a must when comparing home insurance policies. Most people would jump to the end and compare just the annual premium they are quoted by each insurance company. This is a big mistake, knowing that the contents of the insurance policy form the basis for the coverage amounts. A sizable reduction in one coverage amount can decrease the premium considerably. The problem will come up when a claim is not accepted because of inadequate coverage on the policy.

The wise shopper compares all amounts on all policies using certain tools, such as a spreadsheet. For every insurance company, there should be a column, with each row having the same classification. If you make exact comparisons, you can easily spot discrepancies which explain why the premium amounts are not the same. Adding notes next to every category will remind you why a certain insurance company was eliminated from consideration.

While comparing basic home insurance policies at, expect their prices not to vary significantly. Home insurance companies provide discounts as a way of encouraging encourage homeowners to protect their property, such as by setting up security cameras or fire suppression devices.

Certainly, a wise home insurance shopper will use every single discount possible. The cash you spend to install the recommended risk-mitigating measures can save you up to thousands in the form of reduced premiums. And by choosing the same insurer for your auto and life policies, you can be rewarded for your loyalty through multi-policy discounts.

The limits for liability insurance are increased as insurers know that litigation against the policyholder can happen. In the event of a major lawsuit, additional coverage can be provided through an umbrella liability insurance policy, where the property and livelihood of the insured are guarded against loss.

So what exactly do you consider when comparing different home insurance providers?

First of all, industry reputation. Online, research the ratings of your prospective providers. In the U.S., for example, all insurance companies that underwrite homeowner’s policies are rated by AM Best Company. The ratings are determined according to the company’s performance in different areas, including claim handling. Low ratings indicate that the company has a substantial amount of customer complaints filed against it.

Also look into an insurer’s customer service model. Central customer service at offers standard support and is acceptable to some people. Local agents give guidance through the entire term of the policy and give recommendations for coverage adjustments when needed.

Lastly, timely response to a claim is of course critical to any homeowner. Experienced claims adjusters give enough estimates to include needed repairs to the home.