Questions and Answers

I just sent this Q&A's to a collogue:

1. How can comparing quotes help homeowners save money on expensive endorsements like flood or earthquake insurance?

Comparing quotes can help a client save on Flood and/or Earthquake insurance because they can see not only the prices and fees but the coverages so while one quote may seem less expensive than another, if the coverages are not correct it can end up costing more at the time of a claim.

2. Is it possible and wise for a homeowner to compare insurance companies based on more than just cost, such as the percentage of claims that are denied?

Not necessarily, insurance companies are not out to deny claims, what is important for a claim to be paid out is that the loss/peril is covered and this is where most clients are not fully informed. There are two types of policies. Named Peril vs Open Peril are slightly different. Basically Named peril means the loss/peril has to be named in the policy documents for it to be covered while open peril/loss means the peril/loss has to be excluded for the insurance company to deny.

3. What advice would you give for first-time buyers looking for homeowners insurance in your state? 

For first time home buyer I recommend they go through a broker vs a Captive agency because a broker can look at the prices of several companies at once and compare them side by side. Also I would suggest a higher deductible to help reduce monthly cost.

4. How do regulations and laws in your state impact the amount or type of coverage a homeowner should buy? 

Regulations and laws do not necessarily impact how much coverage a homeowner can buy, what the homeowner does need to know is that the agent is using a "Cost replacement calculator" which is what determines and suggest how much the home should be insured for because the insurance company is going to help repair or rebuild the home after a covered peril based on how much it would cost to repair or rebuild the home.

I hope this answers your questions.

If you need anything else, please let me know.

Thank you,

Blanca Montejano