While you may have thought that finding your dream home, making an offer, and closing was the hard part, there’s still more to do. Your lender will require that you have homeowners insurance before the sale is complete. While your real estate agent will likely be able to recommend a local agent, you should still know what you’re buying.
Homeowners insurance can be expensive and confusing, but it doesn’t need to be. There are many discount options with companies who offer educational tools on their website and agents to answer your questions. A high-value company has reasonable premiums, offers discounts, and works to support their customers through education and customer service.
Five High-Value Homeowners Insurance Companies
1.Allstate. With Allstate, you can get an online quote in a matter of minutes. They cater to new homeowners, offering many educational tools on their website to help you make the right coverage selections.
Discounts offered include price breaks for bundling policies together, such as auto and home, setting up automatic payments, and installing safety features like burglar alarms and fire extinguishers.
The company isn’t known for great customer service, which is a con of choosing them. They have lower scores for customer service at Consumer Reports and J.D. Power.
2. MetLife Homeowners Insurance. Replacement coverage typically only covers a portion of your home’s cost if it, and everything in it, is destroyed. With only 25-50% of the cost replaced, you could have a hard time rebuilding or buying again. Met Life is one of the few insurance companies which offers 100% replacement coverage.
MetLife scores high on consumer satisfaction surveys, despite their dated website. You will have to call and request a quote, as only homeowners in ten states can apply online.
3. Amica. Amica isn’t just top-rated in customer service, they offer significant discounts. Sign up for paperless billing to get a discount, or receive a loyalty discount after you’ve been a customer for two years. Traditional discounts such as bundling and safety systems are also available.
Amica offers additional value to policyholders in the form of a dividend. It’s a mutual company rather than a publicly traded corporation, so if you choose a dividends policy and the company does well you could receive a refund of 5-20% of your annual premium.
While you can apply online, Amica’s website doesn’t have many educational materials. As a first-time home buyer, you might have to lean on your real estate agent for answers.
4. Farmers. Farmers offers a discount for bundling of up to 10%. Like other carriers, if you remain claim-free for three years, you’ll receive a discount. Other perks are a deduction of $50 on your deductible every year you carry the policy and claim forgiveness after five years.
After 90 years in business, Farmers knows how to care for their customers. J.D. Powers often ranks them higher than competitors.
5. State Farm. State Farm offers all the standard discounts, but their loyalty discounts is where they really shine. If you never file a claim, you can get a discount of up to 24% after nine years with the company. However, there are no auto-pay discounts.
State Farm has a thorough online quote process and many resources for first-time homebuyers. Their detailed questions give you confidence that you’ve thoroughly considered and provided for all possibilities.
Other Ways to Save
Other ways to lower insurance-related costs are to combine all your policies with one carrier. Some companies offer discounts if you’ve never filed a claim. Monitored burglar alarm and fire alarm systems also lower premiums, as they protect your home.
Also, carefully consider the amount of coverage you need. If your home was built recently and is up to code, you might not need a high coverage amount. Lowering your coverage lowers your premiums, but make sure that you can cover any out of pocket deductibles! Maybe set aside some of your home buyer’s rebate just in case.
Buyers evaluating homeowners’ insurance companies should connect with a local real estate agent for help and guidance. Agents have helpful advice to share, based on their experience, and can connect you with good carriers and local agents. Fill out our form to be connected with a Clever Partner Agent today!