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
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