Whether you’re buying your first home, moving to a new house or simply reviewing your current insurance, shopping for homeowners insurance can be more complicated than comparing a few prices.
Home insurance policies can differ in coverage, deductibles, discounts and available options. The insurance company offering the lowest premium isn’t necessarily providing identical coverage to another company.
For homeowners in Rochester, NY and the surrounding area, understanding what you’re comparing can make shopping for home insurance much easier.
Aaron Casey Insurance Agency has served the Greater Rochester area since 2007. Here are some of the things we believe homeowners should consider when shopping for coverage.
What Does Homeowners Insurance Cover?
A typical homeowners insurance policy combines several different types of protection.
Depending on the policy, this can include coverage for the structure of your home, your personal belongings, other structures on the property, personal liability and additional living expenses if a covered loss temporarily makes your home uninhabitable.
However, homeowners policies aren’t all identical.
Coverage limits, deductibles, exclusions and optional endorsements can vary. That’s one reason it’s important to look beyond the final premium when comparing home insurance quotes.
Why Can Home Insurance Quotes Be So Different?
Two insurance companies can look at the same home and arrive at different premiums.
Insurance companies use their own underwriting guidelines, rating factors and eligibility requirements. Information about the home itself can also affect the quote.
Factors may include the home’s age, construction, location, roof and other property characteristics. Your insurance history and the coverage limits and deductible you select can also affect the cost.
New York’s Department of Financial Services recommends shopping around because premiums and coverage can vary among insurers.
That’s why comparing home insurance isn’t always as simple as asking, “Who has the cheapest rate?”
A better question is:
“What am I getting for the price?”
How Much Home Insurance Do You Need?
One common source of confusion is the amount for which a home should be insured.
The amount of dwelling coverage on a homeowners policy isn’t necessarily the same as the home’s purchase price, market value or mortgage balance.
The objective of dwelling coverage is generally to provide coverage toward repairing or rebuilding the insured structure following a covered loss, subject to the terms and limits of the policy.
This distinction can be particularly important when you’re purchasing a home and comparing the price you paid for the property with the amount of insurance being recommended.
Your insurance agent can help explain how the dwelling coverage was determined and discuss the available coverage options.
Should You Choose a Higher or Lower Deductible?
Your deductible is the amount you’re responsible for when an applicable covered claim occurs before insurance pays the remaining covered amount, subject to the policy terms.
Choosing a higher deductible can sometimes reduce your insurance premium, while choosing a lower deductible may increase it.
Neither option is automatically right for everyone.
When comparing home insurance quotes, make sure you’re comparing similar deductibles. A quote may initially appear less expensive simply because it carries a substantially higher deductible.
Should You Bundle Home and Auto Insurance?
If you already have auto insurance, shopping for homeowners insurance is a good opportunity to review both policies.
Many insurance companies offer multi-policy discounts to eligible customers who place their home and auto insurance with the same company.
But a bundle shouldn’t automatically be assumed to be the least expensive or most appropriate option.
The important number is your overall insurance cost and coverage.
For example, one company could be particularly competitive for your home while another is more competitive for your vehicles. An independent insurance agent can help look at the available options rather than assuming everything must always be placed with one company.
What Information Do You Need for a Home Insurance Quote?
Having accurate information available can make the quoting process easier.
An insurance agent will generally need basic information about you and the property being insured. Depending on the home and insurance company, additional details about the property’s construction, age, roof, heating system and other characteristics may be needed.
If you’re purchasing a home, information from your purchase documents or inspection may also be helpful.
You may also be asked about your current insurance, prior insurance history, desired coverage and whether you’d like to quote your auto insurance at the same time.
The more accurate the information used for the quote, the more useful the comparison will be.
Buying a Home in Rochester? Don’t Wait Until Closing Day
If you’re purchasing a home with a mortgage, your lender will generally require homeowners insurance to be in place before closing.
Waiting until the last minute can create unnecessary pressure.
Starting the insurance process after you have an accepted offer and sufficient information about the property gives you time to compare coverage, ask questions and provide the necessary insurance information to your lender.
It also gives you an opportunity to find out whether there are any insurance issues that should be addressed before your closing date.
Why Work With an Independent Insurance Agent?
You can shop for homeowners insurance in several different ways.
One option is working with an independent insurance agency.
Instead of representing only one insurance company, an independent agency can represent multiple insurers. This can allow the agency to explore available options from the companies it represents based on your particular home and insurance needs.
It also gives you someone to ask questions about deductibles, coverage limits and other policy options while you’re comparing quotes.
At Aaron Casey Insurance Agency, we offer home and auto insurance options from multiple insurance companies, including Liberty Mutual and Progressive.
The goal isn’t to assume that one insurance company is best for every Rochester homeowner. It’s to help you explore the options available through our agency and understand what you’re purchasing.
Local Home Insurance Help in Rochester, NY
Aaron Casey Insurance Agency has served insurance customers throughout Greater Rochester since 2007.
Whether you’re buying a new home, reviewing an existing homeowners policy, looking to combine your home and auto insurance or simply wondering whether your current coverage is still competitive, we can help you explore your options.
We’re located at:
Aaron Casey Insurance Agency
900 Jefferson Rd, Suite 301
Rochester, NY 14623
(585) 292-9992
Ready to compare home insurance options? Get a homeowners insurance quote from Aaron Casey Insurance Agency.