Home insurance is a wise option to choose if you have just purchased your home. This is intended to protect your valuable investment in case of any damage or loss caused by nature or man.
If selecting a home insurance policy sounds too confusing, the Oklahoma Department of Insurance provides certain valuable tips on how to go about it, the fundamentals of home insurance and what to ask, whom and at what period of time:
Understanding Rates
When you select a home insurance policy, you will need to pay a certain premium or amount as decided by the insurance company. This rate will be judged by several factors like: replacement costs, the location of the house, your claims history, your credit history, construction materials and local fire protection, crime rates in your area and proximity to sprinklers and sources of water supply.
Know the Fine Print
Which is why you need to be thorough with certain fine points. For one thing, your premium will vary dependent on your circumstances and the factors mentioned above. Be thorough with the fine print of your policy and know what you are insured for and what is beyond the coverage. It is no point ruing this later.
Find the Best Rate
Shop either through personal meetings or discussions or online for the company and agent that offer the best service for the best price. Compare prices but do not settle for the first policy quote that comes your way. Different companies charge different rates. Get quotes from several companies before you buy. Make sure you understand what coverages are included and that you are comparing equivalent policies.
Agents and Company Representatives
Independent agents may represent several companies, while some agents represent only a single company or company group. Some companies market their policies directly to consumers without using agents. To check as many companies’ rates as possible, ask to see all the rates of all the companies the agent or company employee represents.
Deductibles
Increasing deductibles is the best way to save money on the insurance. However, you may end up paying more out of your pocket if you have a claim that far exceeds what you insured your home for. Also, if the policy you are being offered has a very high deductible; consider what you can pay for each claim filed before going for it.
Find out about Discounts
Often insurance carriers offer discounts if your home is equipped with the following:
- Impact-resistant (hail-resistant) roofs
- Dead-bolt locks and approved electronic burglar alarms, sprinkler systems
- The age of your home is relatively less, your claims history is blemish free, companion policies, and property is insured to full replacement cost
- Auto policy has been taken with same company
- Senior citizens are present in the house
- Personal property identification marking
Before you buy a policy, remember that in addition to costs, you should also look at the company’s financial track record and customer service. Do not cancel your old policy until your new policy is effective. Wrong information on your policy form could cause an incorrect price quote or a denial or cancellation of coverage. Ensure that all information is correct and true.
Unfair Discrimination
Legal regulations in Oklahoma prohibit an insurance carrier from discriminating against consumers on the basis of race, colour, religion, or national origin, your age, gender, marital status, location, or disability– unless the refusal, limitation, or higher rate is based on sound underwriting or actuarial principles.
Under Oklahoma Law, an insurance company cannot deny, refuse to renew, limit or charge more for coverage, or unfairly discriminate in any manner because of your This means the company must have statistically valid evidence that you present a greater risk for a loss than homeowners it is willing to insure.
Basic homeowners policy does not include protection against floods, earthquakes, nuclear accidents or war. Earthquake insurance may be added to your policy by endorsement for additional premiums. Flood coverage can be purchased separately.
Many insurance companies in Oklahoma have added separate Wind & Hail deductibles to the homeowner’s insurance policies offered to their customers.
However, this is often much higher than the regular deductible of the policy. It comes in the form of either a flat deductible amount or a percentage of your dwelling coverage amount. This is a very important coverage issue when comparing policies from one company to another.
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