Are you purchasing homeowner insurance when you buy a house?

Most new home buyers are NOT buying homeowner insurance…   That statement may be a bit over the edge.  Reality: The homeowner is paying for a policy and getting coverage required by the mortgage company but the home buyer is not personally purchasing their policy and not all insurance is equal.  The coverage provided in a policy has the ability to be positioned for the owner and not the home. 

A realtor wanting to sell a home, buys a home for the homeowner…  Hum.. That seems strange.  What are the chances the realtor will find the home, colors, location, etc. that meet the buyer’s need?

Too many homeowners are never talking to the insurance company and more importantly, they are signing an application at closing never knowing what information was incorporated into the application and validating the information is correct.

Mortgage companies provide a good service of providing referrals.

Realtors provide a good service of providing referrals.

Make sure the REFERRAL is just that and not a policy.   Consider the following:

• Talk to the insurance agent
• Get an alternate quote
• Understand the coverage
• Ask questions about what the policy covers
• Ask questions about what the policy does NOT cover
• See the application and sign the application for insurance PRIOR to closing

The list is longer and I’ll consider writing more later.   When you are provided a referral, consider giving us a call to to provide an alternate solution.  Our services are more than insurance.

Our phone number is: 1-877-MattLocke or 678-682-9700

The town-home has a higher level of need for additional liability insurance.  The close proximity of the neighbors mandates that the insured positions him/herself to be a “good neighbor”.  Example: You the insured live in a town-home.  You accidentally burn your home down.  No problem, the insurance policy on the home is there to protect you… BUT… the fire damages the home next door too.  It was not your Neighbor’s fault that the fire occurred.  The result: the insurance company and the neighbor will sue YOU for your negligence.  The Liability coverage is there to provide coverage just for these types of issues.

Many policies have inherent liability coverage of $100,000.00.  That amount of coverage is in most cases way to small to cover the property, building, and other costs associated with a major claim.  Having $300,000 of liability coverage traditionally adds less than $20.00 more per YEAR to your policy and provides Great additional coverage.  $500,000.00 of liability coverage is traditionally $50.00 more than the inherent liability coverage price.  The coverage is low cost and helps you be a good neighbor by providing protection to others when you cause them loss.

There are other nuances to the liability coverage.  This is a good start.  Let’s discuss more later.

Matt Locke

Coverage Pricing is based on:

Location of the Home- Fire (ISO) Codes and Other Location Information

Value of the Home-The dwelling coverage amount has a direct coorelation to the policy price.

Coverage Selected-Liability Limits, Loss Assessment Coverage, Lock Rekey for stolen keys, Scheduled Personal Property values (Wedding Band or other Jewelry), Identity Protection, and other additional coverage.

Deductible- Deductible levels provide a wide variety of prices.  $500.00 – $5,000.00 deductible could provide pricing changes of over 50%.  The higher the deductible the lower the price. 

Loss History- The absence of prior claims in the last 3-5 years has a significant on the cost of the homeowner policy.

Prior Insurance- Having property insurance without a lapse in coverage shows an insurance company that you understand the importance of having coverage.  There are discounts to new property insurance policy when there is not lapse in coverage.

Security Devices- Dead bolt locks, Monitored or non-monitored alarm system, home sprinkler system

Home Construction-Solid Brick has huge discounts, Brick veneer has good associated discounts, while wood siding may not carry as high of a discount.

Multi-Policy Discounts- Having related home and auto policies with the same carrier positions the insured with additional discounts.  These same policies can provide additional discounts on boat insurance, motorcycle insurance,  pwc insurance, other other powersport coverage.

Credit Worthiness of the Insured- (we do not ask for or require social security numbers)  The indebtedness of the insured can pose additional risks for loss.  Debt ratios and the amount of credit used vs. available credit can play into the pricing of the homeowner policy.