4 Signs That Your Homeowner's Insurance Is Overpriced

Homeowners insurance is one of the most important payments the average American makes every month. However, it's difficult to determine if you're being charged a fair rate. There is little transparency when it comes to rate determination. In other words, your current policy company might never explain to you which variables determine why you're being charged at the rate you are, and they have a "take it or leave it" perspective toward their customers. The unfortunate result is most homeowners paying way too much for homeowners’ insurance in Nashville, TN. 

Here's how to find out if you're being overcharged for insurance, no matter your home's market value.

You Haven't Requested a Discount

It's possible to request a discount from your current insurance company. All they can do is say “no” if you ask. However, you might be awarded a discount if you're retired, have remodeled, have improved safety measures, repaired your roof recently, and more. 

Your Policies Aren't Bundled

If you bundle your insurance policies, combining auto, life, and/or homeowners’ insurance, you can see a huge discount. Insurance companies do this for a major reason: If you bundle policies from the same provider, they get more business out of you, and they will offer you a discount in order to convince you hand all policies over to them. Think of this as a retailer who will charge you a set price for 1 item, but a discount if you buy 2. You pay less per item, and they get a higher total payment from you.

You Have a Low Deductible

If your policy comes with a low deductible, the trade-off is that you pay a higher monthly premium. High-deductible policies are cheap because they’re less desirable, especially because you can find yourself paying a huge amount of money out of pocket when you file a claim. However, if your deductible is low and you live in an area with a low risk of natural disasters like tornadoes and earthquakes, you should consider raising your deductible and lowering your monthly premiums.

Comparing Rates Has Surprising Results

You may have signed onto a policy quickly and didn't compare many rates. Worse, the rates from different companies were all from the largest insurance companies in the country, whose names you can immediately recall from big TV ads. Have you shopped rates from smaller insurance companies that serve local clients? You might find a surprisingly low rate. Try shopping for homeowners’ insurance in Nashville, TN, to find out if you can get a better rate from a new insurer.

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Created on Dec 15th 2017 04:18. Viewed 207 times.

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