When it comes to purchasing homeowners’ insurance, you
can buy a policy through an agent or online. But for protecting
something as important as your home, is buying coverage
online really a good idea?
The following are five reasons why you may want to reconsider
buying your next homeowners’ policy online.
1 The quote may not be accurate.
You are not an insurance agent, yet to determine the price of a homeowners’ policy, you’ll need to know
very specific information about your home. For example, if you don’t know the age of your roof, the distance
to the nearest fire station or whether your woodstove meets the required clearance from a combustible
wall (among just a few critical “need-to-knows”), the price quote you get online could substantially change
once your policy issues.
2 Your “good stuff” might not be covered.
Most online quoting systems ask only the basic policy questions such as square footage, age of a home and
type of roof. But what if you have a detached woodshop, firearms, jewelry, antiques or valuable collectibles
in your home? Unless the online application specifically asks you about these types of things, they won’t be
included in your quote—or worse, won’t be covered under your policy if you have a loss.
3 Your policy may not actually issue.
Your policy may not actually issue. Did you know that a prior homeowners’ claim, the type of pet you
own and a less-than-satisfactory credit report can determine your eligibility for a homeowners policy?
Experienced insurance agents know to run the proper reports at the time of your quote so that any
challenges can be addressed sooner rather than later. Sure, an online application can provide a general
price point, but if these and other issues are discovered later,
you may be denied coverage and your policy won’t issue. you may be denied coverage and your policy won’t issue.
4 You may not get the policy
options or discounts you are
entitled to.
You may not get the policy options or discounts you are
entitled to. During the application process, a real-live agent
gets to know you, allowing him/her to present and offer policy
options and discounts so you can customize your policy to
meet your individual needs and budget. Without an agent
to guide you, you risk missing out on key options, such as
replacement cost coverage, higher liability limits and choices
in deductibles, which can put you at a serious disadvantage
when making your final decision.
5 Your policy might not meet
your lender’s requirements.
A standard homeowners’ policy doesn’t include earthquake or
flood damage, and windstorm coverage is typically limited in
regions where hurricanes are common. Do you know if your
home is located in a high-risk zone for natural disasters? Do
you know if your lender will require certain coverages for your
property in order to close your loan? If you are buying a new
home or refinancing and don’t know what your lender requires,
or if the information was left off the online application or
included incorrectly, your escrow could be delayed and leave
you back where you started.
Today’s technology has allowed consumers like you to meet many
of your insurance needs entirely online—if you so choose. But while
the internet can be a good first step for basic insurance information,
buying homeowners coverage online cannot replace the value of an
insurance professional who can walk you step-by-step through the
process to answer questions, identify possible gaps in coverage or
customize a policy just for you.
Doug Myrick - Myrick.4eia.com - Call or Text 941.979.1101 - Email: dougmyrick@gmail.com
