The changes between different policies can between different agents within a company. Insurance agents are under intense pressure to make sales. One way an agent can keep the price down is aim low in valuing houses. The goal, they say, is to keep premiums down to keep customers from going to competitors, and sometimes even a few dollars can make a difference.
Sadly, many agents are just plain lazy! Too lazy to gather all the necessary information to accurately determine the cost to rebuild a home. Here are a few shortcut's that they take:
Performing a “Quick Quote”
A "quick quote" is exactly what it sounds like. An agent will look up the industry average of your home to determine the replacement cost. This isn't all bad,and is probably a good starting point. However, there isn't anything "quick" about unique home improvements such as landscaping the backyard or redesigning the bathroom. These things raise the value of your house, and a good insurance agent knows it takes time to include all of the small things contributing to an accurate home value.
Using Incorrect Square Footage
The square footage in a home is the single most important part in determining the cost to rebuild. The square footage is based on outside measurements. Many agents will obtain this figure from real estate listings that use inside measurements. If this is how your insurance agent gets your square footage, be sure to inform them that the actual numbers are incorrect.
Using the Purchase Price or Mortgage Amount
Mortgage lenders often require insurance coverage based on the purchase price. But, the cost of rebuilding a home often differs significantly from the purchase price or market value as discussed in Part 2 of the Under-Insured blogs.
These are 3 tricks that you are now aware of about insurance agents. If you think that your insurance company has used any of these when determining your homeowners premium, call an Elzey Insurance agent at 281-998-2500 to see if your home is properly covered, or if you can save money on your current coverage.
Insure with us today, be sure of tomorrow!