WalletHub Insurance: Ask the Experts
J. David Chapman
Ph.D., Finance Department Chairman, Real Estate Program Coordinator - University of Central Oklahoma
When do you recommend getting homeowners insurance and car insurance from the same company?
Bundling homeowners and auto insurance can often lead to substantial savings—typically 10% to 25% depending on the insurer. I generally recommend bundling when they are confident in the insurer's service quality for both lines of coverage, and streamlining the billing and customer service is important to them. That said, it’s always worth comparing bundled rates with separate policies to ensure the bundle truly delivers value. Convenience is important, but cost and coverage terms matter more.
Do you have any tips for finding the best home insurance?
Absolutely. Here are a few smart strategies I recommend to clients. First, Shop around. Don’t settle for the first quote. Compare rates from at least three insurers. Check the financial strength of the insurer. Use AM Best or Standard & Poor’s to confirm the insurer is financially stable and able to pay out claims. I also recommend they thoroughly understand their coverage and make sure they are covered for full replacement cost, not just market value. I would also negotiate - ask about discounts. Some companies offer reductions for things like security systems, newer roofs, or bundling with other policies. Lastly, work with an independent agent and compare multiple carriers and tailor coverage to your specific needs, which is especially important for unique homes or properties.
What would you say are the most common mistakes people make when shopping for home insurance?
The mistakes I see more regularly are underinsuring the property - many homeowners underestimate the true cost to rebuild. That can leave them with big out-of-pocket expenses after a loss. Some focus only on price - the cheapest policy may come with high deductibles, limited coverage, or poor claims service. I also see people ignoring policy exclusions - people often overlook exclusions, like for floods or earthquakes, assuming they’re covered when they’re not. Some don't review their policy annually accounting for things like life changes, home improvements, rising construction costs, or inflation. And, lastly, choosing the Wrong Deductible - a very high deductible might lower your premium, but it can be a painful surprise during a claim. 2025's Best Home Insurance