How to Negotiate the Best Rate for Property Insurance

How to Negotiate the Best Rate for Property InsuranceWhen researching property insurance quotes, policies, and carriers, it is advisable to have all information and details about yourself, your business, and/or your property (depending on which insurance you are considering) ready when contacting an agent or carrier.

  • Research carefully and study the different products available as well as the terms used by the carriers in describing the coverages, perils, limitations, details, and options.
  • Prices can differ significantly from carrier to carrier, but if you are knowledgeable about the policy terms and coverages, you should be able to make an informed comparison of similar products.
  • Today, with the Internet, it is possible to research and study all types of insurance before contacting an agent for a quote.
  • Talk to friends, coworkers, and relatives who might have worked with or bought from an agent who specializes in similar products or policies, and ask their opinions of both the agents and the carriers. Solicit quotes from both online sources and agents that have been recommended.
  • Don’t be afraid to let an agent know that you are obtaining quotes from many sources or to ask how much commission a policy will pay to the agent. An ethical agent will be honest with all answers and should explain the policy details in easily understood language. Always ask about additional or hidden fees and charges, as well as policy exclusions and limitations.

When purchasing any insurance, cheaper is not always better.

Before purchasing any property insurance, it is crucial to thoroughly understand the policy and exactly what and for how much it will insure, as well as what it will not insure. Similar policies’ premium rates and underwriting rules can vary significantly between carriers; never assume that all quotes from different carriers are the same. There are many variables in all property insurance policies. Sometimes an item is standard in a policy, while other carriers may only include the item with a rider. A knowledgeable agent should be aware of carriers who are active in your area, who are diligent in paying claims, and whose policy rates and provisions are reasonable. The agent should also be aware of quoted carriers’ claim practices and be able to help find the best product for you at the price you want to spend.

Last Updated: 08/20/2013

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