Choosing your homeowners insurance policy, 12/2012

              A helpful guide when selecting homeowners insurance, including local rates and common questions.
Understanding Rates:
Insurance companies rate your home based on factors such as replacement costs, the city and/or county where you live, your claims history, your credit history, construction materials and local fire protection.
How to Find the Best Rate:
Shop for the company and agent that offer the best service for the best price. Compare prices.
Different companies charge different rates. Get quotes from several companies before you buy.
Make sure you understand what coverages and perils are included and that you’re comparing
equivalent policies.
Ask Your Agent the Following Questions:
• Am I in your lowest-priced company/tier? If not, why not?
• How can I get a better rate?
• What perils/coverage are excluded or limited in the policy?
• May I add the peril/coverage back into the policy?
Agents and Company Representatives:
Some 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.
CHOOSING YOUR
HOMEOWNERS INSURANCE POLICY
Ways to Save Money
You can save money on your
premiums by increasing your policy deductibles.
However, you’ll have to pay more
out of pocket if you have a claim.
If you are offered a policy with a
large deductible, consider whether
you can afford to pay the amount
for each claim you file.
You may qualify for discounts on your rate but remember not all companies offer the same discounts.
Discounts that may be available
include but are not limited to:
• Impact-resistant (hail-resistant) roofs
• Dead-bolt locks and/or certain
other security measures
• Approved electronic burglar alarms
• Smoke alarms, sprinkler systems
and/or other fire prevention systems
• Age of your home
• Heating, electrical and/or
plumbing updates
• Companion policies such as your
auto policy with same company
• Senior citizens
• Personal property identification
marking
• Credit Score
• Continued Policy Renewals
• Claims Free Discount
Before You Buy a Policy, Remember:
• In addition to costs, you should consider other important factors,
such as the company’s financial strengths and customer service.
• Never cancel your old policy until your new policy is effective.
A policy becomes effective only when the insurer or its local
agent binds coverage.
• Make certain you answer all questions on the application
truthfully. Wrong information could cause an incorrect price
quote or a denial or cancellation of coverage.
Five Corporate Plaza
3625 NW 56th St., Suite 100
Oklahoma City, OK 73112 | 1-800-522-0071
www.oid.ok.gov
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