Understanding the Timeline of Home Insurance Underwriting

Buying a new home is a financial investment worth protecting. Purchasing home insurance is one of the essential parts of becoming a homeowner, and you’ll rest easier knowing your property is protected by a robust policy that covers the many things that could go wrong over time. As you begin searching for the right policy, it helps to know how long the underwriting process takes for home insurance.

Understand the Difference between a Quote & a Premium

Many companies offer free quotes online or over the phone. While these are a great way to start creating a realistic budget for insurance, they aren’t always the final amount you’ll pay for your home insurance premium. A quote uses some general information to come up with an estimated price. The premium is based on all the details that impact your potential risks and needs as a homeowner. When your insurance company tells you the premium amount, this is what you can expect to actually pay.

Know What Insurance Companies Check

Underwriters tend to be extremely thorough when they research properties. They’ll assess your home’s current condition and check records to find out more about the history of claims on the property. The location of your home is another factor underwriters consider. Houses in areas with high rates of burglaries, vandalism, or damage from inclement weather may have higher premiums. The existence of a swimming pool and other types of potentially risky features also play a role in the underwriter’s final decision.

Speed Up the Underwriting Process

While you can’t make an underwriter work faster, you can provide the information he or she needs to process your insurance request. Your insurance company will let you know about any information or documents the underwriter needs, and furnishing them in a timely manner can prevent frustrating delays. A copy of your mortgage contract, a home inventory, and details about your home’s repair and maintenance history are the types of information you might need to provide to your insurance company.

Prepare for the Final Decision

The insurance company has 60 days following the effective date of a homeowners insurance policy to complete the underwriting process. During this time, it’s possible for an insurance company to identify a previously unknown factor that changes your home’s estimated risk for damages. If something changes during this 60-day underwriting period, the insurance company must notify you of the error along with any changes that need to be made to the current policy, such as an increase in the premium.

Once the underwriting process is complete and the 60 days have passed, you can trust that your policy will continue according to the initial agreement. At this point, an insurance company can only cancel a policy for specific reasons that comply with state law. For instance, an insurer may cancel the policy for nonpayment. Making sure you fully understand and agree with your policy’s requirements can help you maintain home insurance that allows you to recover financially from an unforeseen event.

For information on choosing affordable homeowners insurance that suits your needs, call on the experienced agents at Altra Insurance Services. In addition to homeowners coverage, we offer a variety of reliable insurance products, including business, renters, and car insurance Chula Vista. Call us today to learn more about our high-quality service and affordable coverage.