The short answer to this question is “yes”. However, in order to assess whether it actually makes sense to change your home insurance company; or to continue with the same home insurance company please continue to read this blog.
The biggest benefit of continuing with the same home insurance company are the premium discounts that are offered to loyal customers who keep renewing their policy year-after-year.
However, inspite of this there might be valid reasons why some people want to switch their home insurance company. A note of caution to them – if you cancel a home insurance policy before the date of its annual renewal and switch to another home insurance company, then you might have to pay a “short rate” penalty.
Reasons why people want to change their home insurance company
Most home owners typically shop around by checking home insurance Alberta when the policy renewal time nears. They want to make sure that they pay the lowest premium and get the highest home insurance cover. For this they seek quotes from various home insurance brokers in Alberta in order to compare offers from competing home insurance companies.
Some of the main reasons attributed by people to change their home insurance company are as follows:
– Increase policy coverage, or remove the restrictive elements in your cover.
– Seek better services related to customer service or claim processing.
– Get a better price on your cover. For example, another insurer may offer you a lower price and provide the
same level of coverage that your current policy offers.
Which is the best time to switch your home insurance company?
There are numerous occasions when you make a switch, but typically the best time is when a renewal is due or when you have made a purchase of a new home.
Getting a quote from your current provider is a good place to start, but bear in mind that the home insurance quote for your new home might be different (could be higher or lower) to what you are paying for your existing home. The difference in rates might be due to a number of factors namely:
1. Location of your home: This may be a positive factor or a negative factor. If it is near an area that is prone to risks such as flooding, then the premium of the policy will be higher, whereas if it is located near a fire station, then the premium will be lower.
2. Age of your home.
3. Age of the furnace and the roof.
4. Quality of electric wiring in the home.
5. Condition of materials and quality of construction of your home.
6. Whether or not your home is installed with security-monitoring and control systems.
7. Neighborhood crime rate.
8. Your credit score.
9. Number of claims filed by you.
10. Deductible amount.
Process to cancel or replace your home insurance cover
If you have made up your mind that you want to switch your home insurance Alberta, then it is advisable to read through your policy document once to see firstly, whether you are liable to pay any penalty amount or not and secondly the specific steps that you need to follow to carry out the switch.
Thirdly, it is advisable to understand the pros and cons of the existing home insurance policy and the new one that you are planning to buy and make a comparison between the two item by item.
Fourthly, ensure that your coverage of the new home insurance policy begins either before the end of the existing home insurance policy or with seamless continuity, that is without any breakage, else you may have a gap in coverage and run a risk of not being protected should an incident occur.
Work with a home insurance broker in Alberta
To get the best deal and ensure peace of mind, always try and engage a trusted home insurance broker. He will ensure that you get the best coverage at the lowest possible rate. This is essential, especially if you have bought a new home or have made changes to your existing home.
Beneficial Insurance Solutions is one such insurance broker based in Calgary, Alberta who work professionally, and ensure that you have enough insurance to properly cover your home and belongings. If you are thinking of changing your home insurance, contact them today for a free, no-obligation quote.