Where to go for Homeowner's Insurance?

[Perd Hapley]

I'm about to buy a house for the first time, and I need a Homeowner's Insurance policy.  Any recommendations?  

Anybody know any good Home Protection Plans?

What does one look for on such policies, and what is to avoid?

[Jamisjockey]

Any of the big carriers, IE allstate, farmers, etc.
Make sure it covers the stuff you need.  
Make a list of stuff you need, like firearms, jewelery, electronics, etc.  Make sure its got some kind of flood coverage, or you get a flood rider.  Make sure you have sensible liability for accidents on your property.

[grampster]

Actually, some of the smaller players in your market may be better than the bigs.  Look for a small company, domiciled in the state you are in, that has been in business a long time.  They will generally have a better price and better coverages because they don't have the overhead or exposure the larger multi state companies have.  So they will tend to be more liberal in what options they offer.  Look for an independent agent that represents one of these companies that has been around for awhile.  Check with your state Insurance Bureau or Commerce Department.

Thirty seven years in the business speaking here.

[BozemanMT]

go with someone local for sure.  Do not go with any company that does not have a real presence in your area.

I personally would suggest the bigs (state farm, farmers, allstate, etc) but some smaller ones are decent.

Also most companies give good sized discounts if you do car/house/trailer/etc all through them.  this can make a big difference in your total premium.  Someone might be $50 higher on the house, but $200 cheaper on cars with the discount.

Get a big deductable, at least $1000.  You do not want to make small claims, they will drop you like a hot rock and then your rates will be outrageous.  Insurance is for big things, not small things, get a big deductable and you won't forget that.

Let me tell you a horror story though

Next door neighbor decides to go with some california insurance company because it's $50 a year cheaper (we're in colorado, I think I pay like $750 or so a year, so $50 isn't really a big deal)
She pays her money for a couple years, then last year, her house catches on fire and basically totals itself.  The shell is still there, but everything will have to be ripped out.

She couldn't get people to answer calls, they lowballed her (all insurance companies do this), she couldn't do much about it.  (now me, I would have been on the car on the way to california, but this is her problem, not mine).   They finally settled after about 8 months for $180,000.   And then she had to pay a independent adjuster to have even gotten her that much.   $180,000 won't put that house back together again, much less actually get her furniture, clothes, etc

All to save $50 a year

Penny wise, pound foolish.

deal with real companies that you can put pressure on because they are local.
Remember, insurance companies are in business to make money, not to help you.

[AJ Dual]

Look for an independant insurance broker, and tell him your criteria. They know abot insurance companies you may never have even heard of, like good local companies that are stable, and more flexible in what they insure, or even a combination of coverages that's a better deal than going with just one company.

The insurance broker gets his comission from the Ins. co. you sign up with and his job is only to make you happy with the best deal. A good brokerage also will help you with insurance questions, and can help get you the "inside track" with the Ins. Co. if you have a problem.

[41 Redhawk]

Be sure to check with an Erie Agent. I have not been able to find anybody cheaper for car and auto insurance.

[K Frame]

Erie doesn't write in Missouri.

[Brad Johnson]

Just my .02 worth..

Very much agree that you should pick a company with a local presence (preferably in the form of a dedicated office).

Go with as large a deductable as you can comfortably afford. Most policies default to 1%, but you can get a significant reduction in your policy premium by just upping the deductable a bit. You would be better off putting a little money into some type of money market or interest bearing checking account and keeping it for small stuff like broken windows, minor wind damage, etc..

The same goes for Home Warranties. If you are reasonably handy you can handle most home repairs yourself. Set aside some money every month (use the same account as the insurance thing above) for major repairs like HVAC systems, big leaks, etc.

I like independent agents because they have a larger choice of policies and some may well be less expensive. The flipside is that company-dedicated agents will know their policies inside and out (most of the time) and will usually have a more efficient claims service should you ever need to use it.

Get the companion policy discount (car and home). It's a savings that's hard to ignore.



Brad