Reddit's Best Advice When It Comes to Home Insurance

If you can cut through the noise, everyday people who post on Reddit have some pretty great insights.

Ah, Reddit. It's like dropping into a party with a million (or more) people in attendance and not knowing a single person. And yet, you spend the night listening to their opinions. Like any party, some of the opinions are clearly ridiculous, but once in a while, you find a gem of insight to hold onto.

We were curious what Reddit would have to say about homeowners insurance, and we have to admit, some of the advice offered was solid.

When in doubt, work with an independent agent

There are two types of insurance agents: Captive and independent. Captive agents work with one insurance company and can sell only that company's policies. An independent agent works with various insurance companies and can search through them all to find the policy that best fits your needs and budget.

Redditor's appeared to have a strong opinion on this. For example, user Rick91981 wrote, "Look up an independent agent near you. They will do all the hard work for you, save you money, and it's all free. They will be able to answer all your questions about coverage and what is right for your specific needs."

Apostate456 shared their experience by writing, "I thought home owners ERROR: 'sic' is not a registered shortcode insurance was crazy in Texas. Then I moved to South Florida and learned what true insanity is!

I ultimately started working with an insurance broker. I let them know what I valued most in home insurance (e.g. I lived in an old home so I didn't want a cap on water damage in the event an old pipe burst). We also talked about deductibles (which are VERY high in south Florida due to hurricanes).

That's a good place to start. They will shop around for you and get you the best rate for what you want."

It may be a hassle, but you can find a new insurer when your old insurance company drops your coverage

A Redditor called DorisandArlo expressed concern because their insurer cut ties with them. According to the poster, after being with the same insurance company for 30 years, the insurer dropped them after they filed one claim for water damage. DorisandArlo went on to say that no other company seems willing to insure them now.

Fortunately, one response came from a user called Vershagood. Vershagood shed light on how insurance companies determine whether they want to insure an applicant. They wrote, "The insurance companies use information from the C.L.U.E. (Comprehensive Loss Underwriting Exchange) report."

Vershagood continued by suggesting that the original poster take a look at their C.L.U.E. report to learn what insurers are reading about them.

Here, Vershagood explained how to do that: "The Fair Credit Reporting Act entitles you to a free copy of your CLUE report. To request a copy, contact:

LexisNexis, Consumer Center Request your personal report online www.consumer.risk.lexisnexis.com/request. Call 866-312-8076 Free to the homeowner only."

Some insurance companies are willing to take the risk

Other Reddit users jumped in to suggest specific insurance companies they've found to be open to those with negative remarks on their C.L.U.E. report.

For example, user Clypsedra shared, "I had two house claims in five years, and then we had to sell that house while living in our new house. They kicked us off the insurance for the place being vacant and we couldn't find anyone to insure us thanks to the claims (a sewer backup in our basement and a giant tree stabbed our garage). Progressive did. We got our cars on it too and it has saved us a *!* load for the exact same coverage we used to have. Now I sound like an ad. Idk if they do builders risk but they are more forgiving about claims than others."

Lloyd's of London was deano1856's suggestion. "My insurance dropped me after a major water damage claim and a wind damage claim. No one but Lloyd's would insure me. They insure everything."

Another suggestion came from kananixx. "I originate mortgages for work. I recently had a client who had made two claims within a year on the house they sold and we struggled for a while to find an insurer who would insure the home they were purchasing. I'm not sure if it's available in your area, or the quality of coverage, but Hippo insurance was able to insure my clients. Good luck! Homeowners insurance is ridiculous at times."

What should be mentioned here is that any time an insurance company takes on a high-risk client, it charges a higher premium. Fortunately, if there are no additional claims, the premium will come down over time.

If you have a mortgage on your home, chances are, your mortgage lender requires you to carry homeowners insurance. And the truth is, there's nothing quite like the peace of mind that goes along with knowing that one of your most valuable investments is covered if peril hits. Still, nothing is perfect. That's why it pays to find the best insurance company for you.