Tips for Comparing Homeowners Insurance Rates

How to Compare Homeowners Insurance Rates in San Diego, CA

When you are financing a home, your lender requires that you have adequate homeowners insurance in place prior to closing escrow. Unfortunately for many, this requirement is overlooked until the last minute, forcing some soon-to-be homeowners to rush to purchase the first insurance quote that they receive. By doing this, you are satisfying lender requirements, but are you paying too much for your insurance coverage each month out of your escrow account? American Tri-Star Insurance in San Diego offers information about what to look for when comparing home insurance rates so that you can find the best deals.

    1. Check the Company’s Financial Rating

      You never want to pay a company on the verge of going bankrupt to protect your property. This is why the very first step to finding the high-quality and low-priced property¬†insurance in San Diego is to check the insurer’s financial rating. You can check through consumer rating agencies like Standard and Poor’s or AM Best. Once you verify that the company has the assets to pay large claims, the next step is comparing rates.

    2. Request for an Apples to Apples Quote

      All too often, when a company is not competitive, the agent will try and quote you with higher coverage limits to sell the product. While you may have a need for larger limits, always start by requesting a quote for the same coverage you currently carry. Match your Dwelling limits, Personal Property limits and Liability limits initially. Once you see how these premiums compare, you can ask the agent for suggestions and receive a modified quote.

    3.  Be Sure You Have the Right Dwelling Coverage

      Many homeowners assume that they must cover their home for the amount that they paid for it. The mistake here is that the purchase price also covers the land that the building sits on. Dwelling cost is designed to pay for rebuilding your home. Consider the cost of materials and labor to replace the home, and do not pay too much for coverage limits that are too high.

    4. Find Out About Multi-Policy Discounts

      If the company sells both home and car insurance for San Diego residents, there is a good chance that you can receive a multi-policy discount off of each policy for combining your coverage. You can save between 5 and 20 percent off of each plan while making it easier to pay and service your policies.

    5. Let Your Agent Know About Upgrades

      Insurance companies will assume that the systems in the home are original. If there have been updates to the major electrical, plumbing or roofing system, let your agent know. You may receive discounts for making your home more disaster resistant.

The best way to find the lowest premiums is to shop around. Sift through the long list of insurers, find the more reputable companies, and start requesting quotes. Once you compare apples to apples, ask for suggestions. While price is important, it is also important to find an agent you are comfortable with if you ever need to file a claim.

For more information or to speak with an expert insurer, pick up the phone and dial 619-272-2100 and start your path toward reliable and affordable homeowner’s insurance in San Diego.