Homeowner’s Policy Specifics…Are You Prepared?

I always think that it’s important for agents to see keep up to date with what large news media sources are saying about insurance.  It’s what consumers here and where they take advice.  And let’s face it, it’s not always accurate!

But if you don’t know what is being said, then it’s hard to be prepared.  One example, I always use is Dave Ramsey.  He gives very specific advice about insurance to his listeners.  If you have a client who is serious about Dave’s advice, it’s a whole lot easier if you know what you’re working with!

This morning, I ran across an article in Money magazine (April 2013) called “Covered?  Don’t be so sure.”  Basically they took a look at the increasing amount of exclusions in homeowner’s policies and what a consumer needs to look out for.  Things like extended replacement cost, sewer backup riders, flood insurance, and deadlines for replacement.

Interesting article that could potentially scare your clients, big time!

Here’s the advice they gave on shopping for a homeowners policy:

  • Get 5 quotes.
  • Use your state insurance department to compare sample policies.  (Yeah, we all know how easy THAT is!)
  • Ask the right questions – riders and replacement cost specifically.
  • Request a sample policy before you buy.  Then read your policy in depth when you purchase.  You can always cancel and get a refund.

I see the point of the article.  Consumers DO need to know these things and be aware of what they are purchasing.  It’s one more reason why cheaper isn’t better.  But your agency needs to be prepared too.

Imagine if someone read this article and then called you for a quote.  Can your staff answer questions about water coverage?  Do they know the policy specifics on replacement cost?  What about sewer backups?

Time to get prepared!