Page 28 - Kiplinger's Personal Finance - November 2018

MONEY

with the same insurer is usually a get a new set of shingles across the embedded in your current policy, such
good way to save about 15%—and entire roof for a uniform look. as for tree removal or sewage backup,
sometimes more. But shop the policies that aren’t costing you that much.
separately as well, because some- WHEN TO SWITCH If you find a policy that offers simi-
times a company will offer a lower A sharp jump in premiums—say, lar or better coverage at a lower price,
rate on home than on auto, or vice 15% or more—is one good reason to check that your new insurer has at least
versa, and the difference will out- start shopping around, says Loiselle- a B+ rating with rating agency A.M.
weigh the credit you get by bundling, Mongeon (see the box below for ad- Best (you will need to register at www
says Cheryl Crews, director of opera- vice on how to shop). It’s also worth .ambest.com) before you switch. Also
tions at Turner & Associates Insur- looking around after you’ve made sub- look up the insurer’s complaint record
ance, in Brunswick, Ga. stantial upgrades to your home, such at the National Association of Insurance
Inflation guards are typically built as installing new safety features, or Commissioners’ Consumer Informa-
into insurance policies, meaning your when you’ve undergone a major life tion Source (www.naic.org/cis). Type
dwelling limit (the estimated cost to change. Retiring or starting a new in the company’s name and choose
rebuild your home) will inch up about career, for example, could trigger “property/casualty” in the drop-down
2% to 4% each year to keep pace with discounts. Or maybe you live in an menu, then click on “closed complaints”
building costs. Houldin recommends area prone to natural disasters and for the company whose five-digit NAIC
reevaluating this number every six want better coverage, such as elimi- code matches the one on your policy.
years or so—sometimes homes end nating a high hurricane deductible. Select “closed complaint ratio report”
up overinsured, especially for those Even if you’ve made claims within and then “homeowner.” You’ll see a
with a high dwelling limit to start, the past three years, you may be able ratio of the insurer’s market share of
and you have room to trim your cov- to lower your premium with some resolved complaints to the share of
erage. On the flip side, inform your insurers (an independent agent can homeowner premiums. The national
insurer about any major renovation, assess your chances). But be sure you median is 1.00; the lower the ratio, the
in case that boosts the cost to rebuild are shopping for the same coverage. better the insurer’s track record.
and leaves you underinsured. A lower premium could mean you are
Staying loyal to one insurer—and losing valuable riders or coverages CONTACT THE AUTHOR AT MCROSS@KIPLINGER.COM.
to one agent—for the long haul has its
perks. “If you have two unexpected
claims in one year after being claims- KipTip
free for 10 years, the insurer will be
a lot more lenient and likely to keep How to Comparison Shop
you as a client,” says Melanie Loiselle-
Mongeon, vice president of Loiselle You can start your research process online by gathering quotes from comparison sites,
Insurance Agency, in Pawtucket, R.I. such as www.insurancequotes.com. A handful of states offer sample rates and price-
And if you have “guaranteed replace- comparison tools on their department of insurance websites. But the results will be
ment cost” coverage with your current limited and may assume lower limits than you want or need.
insurer, you may not be able to repli- The best method is to contact an independent agent who works with multiple insurers.
cate it with another company (see the An agent can interpret jargon in policies and steer you toward appropriate coverage levels.
graphic on the previous page). This A good agent will also reach out to you if your premium increases significantly and shop
coverage can come in handy in the around for alternatives.
face of rising construction costs—say, To find an independent agent, visit www.trustedchoice.com. Bill Wilson, CEO of
if your original estimates were off, or InsuranceCommentary.com, suggests asking your current or prospective agent how
if a natural disaster destroys a swath he or she determines your coverage levels (the agent should have a detailed list of ques-
of homes in your area and the cost to tions), how you can fill gaps in your coverage for catastrophic events and how the agent
rebuild shoots up. finds competitive rates while making apples-to-apples comparisons.
Agents may also go to bat for long- Some insurers, such as Amica Mutual Insurance, State Farm and USAA, sell directly
time clients to argue for repairs that to the public or exclusively through their own agents. Bob Hunter, director of insurance
go above and beyond the minimum for the Consumer Federation of America, suggests calling these companies separately to
needed to get your house back in compare quotes. The National Association of Insurance Commissioners’ “A Shopping Tool
shape. For example, if a tree falls on for Homeowners Insurance” (find a link at www.naic.org/cipr_topics/topic_homeowners_
your roof and cracks some of your old, insurance.htm) contains a comparison worksheet and questions to guide conversations
faded shingles, your agent can more with your insurer or agent.
easily argue that a loyal client should

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