Home Insurance Shopping Tips

article by WILL RENTSCHLER

East Hill has always been the staple of where people in Pensacola want to live. It has so much to offer with being close to the water and downtown. The residents are friendly, familiar, and focused on making it the best place to live. This one-of-a-kind neighborhood also offers such a variety of architecture, making each home unique.

That said, these houses that offer charm, character, and uniqueness don’t always mean great insurance prices or quality of a known carrier. Over the last year, we have seen an unprecedented number of Florida home insurers going insolvent or leave the state. This could be devastating for a consumer who needs insurance NOW. As you make your next purchase of a home, or are just shopping for new home insurance, the information I am going to share should help you be prepared and ready to make the most informed decision.

We all have a budget and desire affordability, but I don’t suggest the cheapest option when purchasing home insurance. Think about it for a second. Aside from your ability to earn income, your house is likely your largest asset. Do you really want the cheapest policy protecting one of the most important items to you and your family? Select a plan that adequately covers your home if there was a total loss. Key words: Total Loss. On your insurance policy, that will be listed as the “dwelling coverage”. The dwelling coverage has nothing to do with the real estate price of your home. It only has to deal with what it would cost to rebuild your house to similar construction. Knowing that and where we are today with increased building costs and inflation, make sure you have the right amount if the unthinkable happened.

Another item to look at is the company you are choosing. Make sure you research the company, how long they have been in business, how much of your premium they set aside in the event of a claim, and whether they’re an “A” rated company. AM Best is the rating agency for the insurance agency. Run a quick search on AM Best (web.ambest.com) for the company(ies) you’re considering, and you should know withing seconds which are fiscally sound and prepared to write you a check when you file a claim.

Lastly, when having inspections done on your home, there are many items that decrease your premium, and there are things that can flat out make you ineligible with some carries. When looking at a four-point inspection and wind mitigation inspection, look for the following items:

How much roof life is left on your home? Most insurers want to see over three years.

What type of electrical wiring do I have? Copper is great, but aluminum wiring can make your home ineligible, putting you in a tough spot to rewire your home.

What type of plumbing do you have? If you see polybutylene pipes you are generally going to have pushback from insurance companies, as they prefer copper.

There are also items that can help you gain discounts on your policy, such as a security system and whole-home generator. (Give Adam at Seville Power Equipment a call to get your whole-home generator quote. They also offer exceptional maintenance service and repairs.)

Knowing what I have shared with you today can help save you from purchasing a home that could require $20,000+ in upgrades to become insurable or help you choose the best company for you and your family that fits your budget and has you feeling safe.

Will Rentchler manages a highly-reputable State Farm Agency in East Hill. Check out the Business Directory in the back of this Guide for a full list of local insurance providers.