When it comes to buying home insurance, there are a lot of factors that should influence your decision, and price should not be the main determinant.
That’s the word from two of Maple Ridge’s most experienced insurance brokerages, which argue that price should only be taken into account once all other factors have been examined.
Brenda Kelly, an agent with Johnston Meier Insurance Agencies Group, says shopping by price alone is one of the most serious potential pitfalls when buying home insurance.
“The biggest misconception about the purchase of home insurance is that all policies are the same,” she notes. “Each insurance company has its own limitations, restrictions and premiums.”
Meaning the cheapest policy isn’t likely to get you the coverage you actually need.
Patricia Van Vloten, from HUB International Insurance Brokers, concurs. She also suggests there’s not much point in shopping around for price because most policies are pretty comparable cost-wise.
“For coverage and service, yes; for price, no,” says Van Vloten.
Both women say homeowners would be better advised to concentrate on finding a broker who is knowledgeable and experienced. The more experience and knowledge the broker has, the better chance the home owner has of getting exactly what he or she needs.
Kelly advises homeowners to determine what coverage is important to them, and to ask about the stability of the insurer, while Van Vloten says ensuring the homeowner gets good value by getting the right policy – with the right coverage and the right options for the right premium – is important.
Asking questions and actually getting answers is most important in this process, because it’s not being aware of what’s in the policy that usually spells disaster for home owners when they want to collect on that policy.
Not understanding the policy – especially the restrictions and limitations applied – is another pitfall when buying insurance, Kelly adds.
As is, “not understanding the need to review your policy with your broker each year.”
Things change over time, so making sure your policy is up to date is important.
Insurance companies are not going to turn a policy sale down for frivolous reasons.
However, that’s not to say everyone can get coverage.
Van Vloten says too many claims, or a few severe claims, could make a person ineligible for an insurance policy.
Kelly notes that having had a policy cancelled for non-payment of premiums will also make things more difficult the next time around.
Naturally, it’s not all about the broker or the insurance company; the type of insurance you can get – or whether you can get insurance at all – is also dependent on the home itself.
Problems like poor maintenance, aluminum wiring, poly-butylene water piping, oil tanks and previous marijuana grow operations are a few of the reasons that a policy might be more expensive, have specific limitations, or be denied outright.
Once you have your policy, both Kelly and Van Vloten agree the best way to ensure a smooth claim process, should the need arise, is to keep good inventory records, complete with pictures of your home inside and out, plus receipts. Then store them in a safe place.
It’s much easier to resolve a claim in your favour if you have proof, says Kelly, and having a good relationship with your broker means you’re more likely to have someone in your corner should the insurance company prove difficult.
The No. 1 piece of advice from Van Vloten concerning the purchase of a policy is to read the policy, and insure value.
For Kelly, it’s the same.
“If you don’t understand something, highlight that section and go to your broker for answers.”