Need Advice on Home Insurance Options
Hi everyone! I’m currently weighing two home insurance policies and would appreciate your insights. I’m purchasing a brand-new home in Eastern Nebraska for $390,000. The main difference between the two policies is the premium and the deductibles for wind and hail damage. While the $400 annual premium difference is significant, I’m concerned about potential hail or wind claims over the next 13 years—making the higher premium more appealing.
Both policies offer similar coverage overall, so I’m trying to make an informed decision. Also, I currently have my car insurance with Progressive at the platinum level, and switching isn’t a considerable difference in rates.
Here are the details of the policies I’m considering:
Policy 1: Progressive (ASI)
– Premium: $1,100
– Deductible: $1,000
– Wind/Hail Deductible: $7,860
Policy 2: National General by Allstate
– Premium: $1,560
– Deductible: $1,500
– Wind/Hail Deductible: $2,500
Any thoughts or advice would be greatly appreciated!
Choosing the right home insurance can definitely be a tough decision, especially with the significant differences in premiums and deductibles for wind and hail coverage in your case. Here are some thoughts to consider:
Risk Assessment: Since you live in Eastern Nebraska, check your area’s history of hail and wind damage. If it’s a common occurrence, the lower deductible on Policy 2 could be more beneficial in the long run, even with the higher premium.
Potential Claims: Consider how frequently hail/wind claims might occur. If you expect to have hail damage during the time you own the home, the lower deductible on Policy 2 could save you money in the event of a loss.
Overall Cost: The yearly difference is $460 ($1560 – $1100), which adds up over several years. However, if you foresee experiencing a hail/wind event that would trigger the deductible, price out the long-term savings of the lower deductible scenario. For instance, if you have to file a claim on the lower deductible policy, that could offset the higher premium relatively quickly.
Bundling Discounts: Since you already have car insurance with Progressive, there may be additional savings available by bundling your home and auto insurance, which might make staying with Progressive more attractive.
Coverage Comparison: Make sure to compare the coverage details apart from the premiums. Are there any notable differences in terms of exclusions, limits, or additional coverages that may be beneficial to you?
Ultimately, it’s a balance between risk tolerance and your financial situation. If you are more risk-averse and expect the potential for claims, Policy 2 might be worth the investment. However, if you’re comfortable with assuming more risk and believe claims are unlikely, Policy 1 can save you money in the long run. It could also be helpful to speak with an insurance consultant who can provide insights specific to your location and situation.