Home Insurance in Honolulu, HI
This story was originally posted on March 26 on WalletHub.
When do you recommend getting homeowners insurance and car insurance from the same company?
It makes sense to get homeowners insurance and car insurance from the same company if there are significant discounts and savings. Many companies nowadays offer multi-policy discount if the policy holder combines several policies together. It also makes sense to combine polices if the price to bundle is much lower in aggregate than just buying two separate policies from different providers. Another reason to consider is whether having one insurer significantly reduces the policy holder's claim process. Lastly, if the policy holder wants the convenience of having a single point of contact for both policies, then bundling homeowner and car insurance would make sense.
Do you have any tips for finding the best home insurance?
The first consideration is to assess the replacement cost (not the market value) of your home. The policy should sufficiently cover the rebuild in case of a disaster. The coverage should also include the replacement costs of any personal assets (appliances, computer equipment, valuable jewelries, and art pieces). It should also provide liability coverage in case your guests injure themselves on your property. Based on your geographical area, you should also consider getting coverage in case of natural disasters (flood, earthquake, etc.). Additionally, you should shop around for competitive premiums, coverage limits, and deductibles. Also check third-party rating agencies (AM Best, J.D. Power, Consumer Reports) for insurance companies' reliability and reputation. Finally, it is essential to read the policy documents in their entirety to identify deductibles, limits on high-value items, and exclusions.
What would you say are the most common mistakes that people make when shopping for home insurance?
It is a big mistake to choose coverage based on the market value of the home instead of its replacement cost. If a disaster strikes, the payout may not be enough to rebuild your home. It is advisable to work with the insurer to estimate the replacement cost of your home inclusive of materials and labor. Another mistake is not understanding policy exclusions, for example, area specific risks. The third mistake is to choose a policy solely based on its monthly premium. A cheap policy may save you money at the front but leave you severely underinsured when a disaster happens. The fourth mistake is overlooking personal property coverage, such as jewelry, electronics, appliances and art. It is important to take an inventory of your belongings and consider additional policy riders for those items. Another mistake is ignoring liability coverage. Liability coverage helps cover accidents incurred at your home by visitors. You can face significant financial losses if sued. Another mistake is not reviewing the deductible amount. A low deductible increases premiums, while a high deductible might be unaffordable if you need to file a claim.