What are the benefits of bundling?
Until recently, there were countless options available for homeowners insurance in Colorado. In the past few years many carriers applied stricter underwriting guidelines. We have even seen some completely pulling their business out of the state of Colorado. Many carriers won’t write a home policy unless the car and home insurance are bundled.
Catastrophic hailstorms cause significant damage and cost a lot of money. That makes home insurance a huge risk for insurance companies in Colorado.
Insurance carriers in Colorado have been in the negative (losing money) for years now. As a result, there are very limited options when it comes to a “standalone” home policy.
There are more options available when you bundle.
Most insurance carriers will write an auto policy by itself. But many companies in Colorado now require an auto policy to write a home policy. This is a way for insurance companies to limit the risk they are taking on the home insurance.
There are still options for standalone home insurance, but they are limited. Those policies tend to be more expensive and have restricted coverage.
Many agents talk about “bundling” your auto and homeowners insurance, for good reason. Insuring your auto and home with the same company gives you more options to choose from. You don’t have to worry about which carriers will offer a standalone home policy.
You can lower your insurance costs by bundling your home and auto.
Most insurance carriers also give you a significant discount when you bundle. The multi-policy discount varies by carrier, but often ranges between 20-30%.
You could save even more if you have all your insurance with the same company. If you have a boat, motorcycle or RV, you might get a discount on those policies by bundling them with your home and auto. Let’s be honest, most of us will take all the savings we can get!
Having all of your insurance with one company has other benefits, too.
Besides getting a huge discount, bundling your insurance can also make things easier. Whenever you have life changes or if you have a claim (knock on wood), you only have to call one company. That can save you a lot of time and probably a headache or two.
There are also many companies that offer a “single-loss deductible.” A single-loss deductible means that if you have to file a claim on more than one policy for the same incident, you only pay one deductible. Your insurance company would apply the highest deductible and waive any other deductibles. For example, if a hailstorm hits your car and home, you’d only have to pay the higher deductible.
Not all insurance carriers offer a single-loss deductible. If your carrier does, the value is very noticeable if you ever have a claim.
I had this happen to me last year and saw the benefit of a single-loss deductible first hand. My house and two cars were hit with hail in the middle of the night. The deductible for my home insurance a was $2,500 and each car had a $500 Comprehensive deductible.
Instead of paying $3,500 out of pocket for repairs, I only had to pay the $2,500 hail deductible. My insurance company waived the two $500 deductibles for my cars. I saved $1,000 by having my policies with the same company!
Is bundling right for you?
Insurance companies want you to bundle your auto and home insurance. But that’s not why you should do it. You should do it because it’s what’s best for you.
When you put your policies with the same insurance company, you have more options. With a larger selection you’re more likely to find the best fit for your insurance needs. That applies to both coverage and price.
Get a quote for bundling your policies today. If we don’t earn your trust and find you a great option, you still have your current policies.
We’ll compare over 15 companies so you can make the right choice.