Home Insurance Bills Out of Control? 5 Reasons It's Time to Switch Providers

This is a guest post from Tracy Myers who is a former real estate agent and current contributor to the blog at homeinsurance.org where she keeps readers up-to-date with home security, insurance and DIY tips. Tracy loves hearing from her readers and welcomes your comments below!

We all need home owners' insurance. If you're taking the financial plunge to purchase or mortgage a home, you of course want to be sure that those assets are protected. The problem with insurance coverage, though, is that we tend to stick with it, even if it's not giving us exactly what we need. Whether it's avoidance of the hassle of a switch, or an assumption that the longer you stay with a company, the better your benefits will be, there are plenty of excuses for staying on a policy that is starting to become a pain. If your premiums have increased to the point that you are worrying about your finances, or if you feel like you deserve better rates than you're getting, there is no reason not to consider the possibility of changing providers. Here are some of the top signs that it may be time to let your current insurance plan go:

1. You're uncomfortable raising your deductible any higher.
One of the first things most customers look to (and, not surprisingly the first things suggested by insurance companies when you inquire about lower rates) is raising your deductible. Raising your deductible even a few hundred dollars can have an impact on your monthly payments, and raising it a thousand dollars or more can make a big difference. But, you maybe, and most likely are, already at the point where raising your deductible and higher would be too much of a financial risk. If you don't feel your savings are equipped to take a couple thousand-dollar hit in the event of an insurance claim, then raising your deductible is not in the cards. In this case, looking to other providers may be a better option.

2. You insurance company has you packaged with provisions you don't need.
If the ultimate excuse your insurance company keeps coming up with is that you are bundled in a package that cannot be changed without switching to a more expensive plan, then it may be time to look elsewhere. There is nothing wrong with providers that package deals; it is the way most businesses function. But, if you find that you are paying much more than you really need to for options that don't fit with your home, then you are simply letting money fly out the window. One or two options that are not absolutely necessary are fine. More than that, and you deserve to check into packages that suit your needs.

3. You ask about discounts to no avail.
One way to lower premiums is to ask about discounts. There are many discounts provided by some insurers for anything from adding better home security to being a sage driver. But, if your insurance company somehow comes up dry every time you ask to lower your premiums, then you could be getting a bad deal. Your insurance provided should want to keep your business. If they are not equipped to negotiate policies, then they may be difficult to deal with in the event of a real emergency.

4. Newer companies are offering sign-up rewards.
You may be hesitant to go with an insurance provider that is less well-known than yours. Or you may be wary of insurance deals that you see on TV or hear on the radio. But, there are good reasons behind these deals, and they are usually simple marketing techniques to attract new customers. If a different insurance company is offering a deal on a policy that is much better than your current one, there is no reason not to look into it.

5. Customer service is typically rude, ineffective, or slow.
You never know exactly what you're going to get when you call customer service most of the time, especially if you're dealing with a national corporate insurance provider. There are simply times when you get on the phone with someone who is having a bad day or with an employee who seems to have no idea what's going on. This is normal. But, if you find yourself constantly grappling with customer service, never feeling heard, and rarely having problems attended to in a timely manner, then that is a bad sign. Things like constantly rude, ineffective, or slow customer service employees are a sign of something wrong within a company. Attitudes and work environments trickle down from the top, so if you can never get any help from where you are, look for a company that makes sure customer service is spot-on.
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