Ask Mitch how to Avoid Low Value Home Owners Insurance

A new home owner was referred to his mortgage companies preferred vendor for home owners insurance. Because he was a client of Mitch, at Mona Lisa Insurance, for other financial and insurance products, he asked Mitch to provide a quote as well. Of course, Mitch quoted him.

Upon receiving the quote from the other company, there was a lot of coverage language he didn’t really understand, which is quite common. He asked Mitch to explain the coverage’s, which of course he did. He always does. As it turned out, the other agency stripped the policy down to bare bones to keep the rate down, probably just to get the deal, and to put it nicely, didn’t come close to meeting his most reasonable expectations. Mitch was able to quote him a much more appropriate policy, for a measly couple of hundred dollars more per year that gave him significantly more coverage. If the client ever had to file an insurance claim, with the original quote, he’d be footing most of the bill for repairs or replacements. This was a bad deal for the client and for the Mortgage broker’s credibility, for having referred the insurance agency.

Mitch was furious at the fact that any company in his profession would do this to one of his clients. It’s just not right, or to put it in Mitch’s terms … that’s unacceptable and gives his profession a bad name.

Clients come to their insurance agents, not just to buy a policy, but to protect themselves and their assets. They trust their agent to guide them through the process and get the best protection and value, not just a cheap price. They deserve to get a real policy that accomplishes their goal.

Now, the other agency would probably say that it’s the markets fault. Seems everybody just looks at the price and doesn’t seem to care about the quality of the coverage. Well, of course they want the cheapest price. That’s to be expected. But it’s the agent’s responsibility, to honor their position as the trusted source, by asking questions and identifying the client’s needs. Then they need to explain the coverage options and quote a policy that will accomplish their goals. Anything less and there’s no need for the agency. You might as well buy your Home Owner’s Insurance from a vending machine.

Any type of insurance you buy, comes with overwhelmingly complicated legal language that you can’t expect the average person to interpret. Stripped down policies leave the client with a false sense of security, believing they are protected with coverage they just naturally expect. All too often, they have no clue of how weak their position is … until they file a claim. Speak to any Public Adjuster, and ask them about the horror stories of people who thought they had proper coverage. They could tell you heartbreaking stories all day long, of home owners who were sure their claim would cover the damages, only to find out that it barely covered the proverbial down payment! The sad part is, it’s all in the policy or contract, leaving no recourse. They’re stuck with the bill and a blue tarp on their roof for five years or taking out a second mortgage to cover the costs.

One could easily say; Ya get what ya pay for, but who wins with these stripped down Home Owner’s Policies? Nobody! The Home Owner is mad at the agent and takes their business elsewhere. They’re mad at the Mortgage Company for referring them to the agent. Next time they need a mortgage, they’ll find another broker. Even though the actual Insurance Provider may be a great company, the client is likely to avoid that company at all costs. The biggest loser is the client, as they are out a significant amount of cash that can never be recovered. And you can bet your bottom dollar, that they’ll tell their friends and plaster it in their social media circles. It’s all around bad voo doo!

Now, there can be one winner in a case like this. It’s the agency that puts forth the effort, putting your needs first, and helps you make a decision you won’t regret. A good agency to look for, is an agency that takes the time to find out what you want, explains your options, and remembers that; armed with the facts, it’s your decision to choose your levels of coverage, and yes, your level of risk. With this kind of agency, you’re in control of your destiny … not some vending machine style contract that makes no sense.

If you have questions about Home Owner’s Insurance, or any type of insurance, please feel free to call and Ask Mitch or simply email AskMitch@monalisainsurance.com. Mona Lisa Insurance will even review your current policy, to make sure you didn’t get the vending machine version.

Oh yeah! We almost forgot to mention a most important thing to expect from your Insurance Agent … an annual review, to make sure you’ve get the value & coverage you expect. You’ll also want to have your Agent shop for better deals at this time. You should automatically receive an invitation from your Agent, to review your policies, well before the renewal date. Many wait till the last minute, expecting you to automatically renew, without a review. It takes a little time to review and shop policies properly. Waiting until the last moment to review to renew, often leaves you in a position of having to renew immediately, to avoid a lapse in coverage. This can result in paying higher rates than necessary.

Mona Lisa Insurance automatically starts Review to Renew Alerts for all their clients, because we believe that; it is very important to know what you have …when you or your family needs it most! Call us old fashioned, but we believe that you deserve this level of service. It’s the right thing to do. We hope we’ve helped you avoid the headaches of low value, vending machine style Home Owner’s Insurance nightmares and welcome your feedback.