Guest post by Josh Holcomb with Farmers Insurance in Springfield, MO.
When getting a home insurance quote there are many things to keep in mind, but one of the most important is how financially strong the company is that you are working with. You can look at Moody’s and Standard & Poor’s rating systems, which would give you an idea of the strength of the insurance company you are working with. Working with a weak financial company could save you some money up front but in the long run cost you a lot of money when you have to make a claim and they can’t pay it.
I would say the second most important thing is where a company stands with the Department of Insurance. On the Department of Insurance website you will be able to see complaints for each company and make sure the person who is selling you an insurance policy is licensed or not. After you find a strong insurance company that is in good standing with the Department of Insurance then you need to look at how much Insurance you need.
When you are buying a homeowners policy you need to check to see if it is actual cash value or replacement cost. There can be a big difference from actual cash value to replacement cost, sometimes in the tens of thousands. Actual Cash Value is the value of the home, which means your home could appraise at $100,000 but it would cost $130,000 to rebuild that house. If you had actual cash value you will get a check for $100,000 but if you had replacement cost, they would have to write you a check for $130,000 for the example above.
There is not a right or wrong answer when it comes to actual cash value or replacement cost, but there could be a big problem if you don’t have what you need. Spending time with a local insurance agent can help you understand which one would be best for you. You also need to make sure you understand what is in the policy and what isn’t.
Most insurance policies for homes has a max on guns, jewelry, fur and fine crystals if they are not added with a floater. One of the biggest risks people take without knowing it is not having flood insurance. No homeowner policy covers flood damage.
What about flood insurance coverage if there are flash floods? Most people in Springfield, MO don’t have to worry about living in a flood zone, but flash floods happen all over the Springfield area. For more information on Flood Insurance go to FEMA’s website.
How do I get a better Homeowners Insurance Rate?
There are a lot of things that play into determining how insurance companies rate your house for homeowners insurance.
- The Area – Where is your house located? What are your fire codes? Are there a lot of storms in the area?
- Credit Score – What is your credit score? The higher your credit score is the lower your rate will be.
- Materials – What kind of siding does your house have? Brick will stand up better in a hail storm than siding.
- Age – How old is your house? The older the home, if it hasn’t been updated, the greater the chance of an electrical fire.
These are just some of the things that are taken into account when quoting a homeowners insurance rate. It is highly recommended that you understand the differences discussed above and what is involved in a homeowners insurance policy before committing to one company.
Looking for homeowners insurance in the Springfield, MO area? Josh Holcomb is a licensed insurance agent with Farmers Insurance in Springfield, MO. He handles homeowners, health, auto, life and business insurance coverage. Give Josh a call today @ (417) 429-0644 for your insurance needs. You can also visit Josh online @ http://insuringtheozarks.com.
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