Home insurance – when to switch providers?

After purchasing a house of your own and securing it with a home insurance policy you may think that everything is settled and you're ready to face any peril. Partially, this is true because home insurance is designed to offer you financial protection as a home owner against different types of damage your house may sustain. Still, there are moments when your current home insurance policy doesn't live up to the expectations or simply becomes too expensive to keep it. So when does one think about switching home insurance providers?

Moving to another house

When moving to another house even if it's located in the same neighborhood you have to review your insurance needs. The house may have a different square footage or have special features that your old house didn't have and the policy doesn't correspond to. It's especially important if you're moving to another area of the city or another city in general. Moving from state to state will definitely require you to switch home insurance providers since even the biggest companies don't serve all states. So you'll have to quote with different providers if you settle with moving to a new house.

Policy becomes too expensive

Your home insurance costs may change with time depending on the claims history of your current provider, the local construction cost dynamics, specific peril risk increasing in the area or your credit score decreasing. If you feel that your current home insurance policy has become too expensive it's better to switch providers in order to get better rates. The best time to do so is in about 30 days before renewal date comes. Shop around first, in order to see what other insurance companies have to offer and if there's something priced more attractively it certainly makes sense to wave your current insurer goodbye.

More coverage options needed

Quite often people decide they need specific coverage to be included into their current policy. In order to do so they have to purchase an additional rider for the specific peril type to be covered. These riders come at a price that can seriously affect your home insurance costs. Sometimes it makes more sense to buy a policy that covers a broader set of perils than buying separate weavers. And quite often you may find that another insurance provider offer better rates for the policy you're looking for than the current provider with his more restricted offer.