The Pros and Cons of Being a Long Term Homeowners Insurance Customer Absolutely Anywhere

The Pros and Cons of Being a Long Term Homeowners Insurance Customer Absolutely Anywhere

Whether you're insured through a Delaware homeowners insurance company, a South Carolina homeowners insurance company, a Texas homeowners insurance company or a California homeowners insurance company, it's always the same old line. Sooner or later, no matter how honest your company happens to be, how diligent you are about keeping up with the tedious process of home inventory or how carefully you checked out all your other options before signing away a percentage of your paycheck, there's an excellent chance you're going to end up spending way too much for your insurance coverage.

Wait. What?

It's sad but true. Unfortunately, it hasn't made it to Broadway yet! Give it time. I mean, after "Death of a Salesman" anything's fair game, right?

Anyway…

When it comes to insurance it's a proven fact that long term loyalty just

The right choice when you buy your house doesn't stay that way forever. You might be surprised at what you find when you go looking around for better rates on your homeowners insurance.

doesn't pay. Period. Why? Because insurance companies have to stay in the game, and they're not going to do that without keeping their insurance rates competitive. That means that they've got to take a look at their competition every year and adjust their rates accordingly.

Short story? New customers could be getting a better introductory rate.

This was a theory tested out by car insurance buyers a couple of years ago, and they were shocked and appalled to discover that by sticking with their current homeowners insurance provider they were paying 10-20% more than they would have been if they'd taken the time to go shopping around and bought their coverage from a new provider.

Now, before all of you that are getting a great deal from the homeowners insurance companies you've been with for years go up in arms, understand that there are exceptions to the rule. Many companies will offer you a discount for being a long term customer, and sometimes those discounts are enough to balance out the difference between that and their new customer rates. And if you've been with them long enough you may even be able to beat the new rates rolling around on the market.

But there are no guarantees.

The bottom line is that doing some legwork and making sure you get a good deal on your first homeowners insurance policy is a good thing, but it's not everything. Make sure you go out and check out your options every couple of years so you know you're still getting the best deal possible on your coverage. Your wallet will thank you for it.

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