You are currently browsing the The Home Insurance Blog blog archives for April, 2008

When to file a claim

April 26, 2008 Tips
No comments

filing-claim.jpg

Generally, there are no guidelines as to when is the proper time to file a claim. Decisions tend to be made based on individual claims made by the customers of insurance carriers. Each company is different and customers are subject to their preferences. Some may raise a hike for a single claim filed. Others wait for two filed claims within a 3 year time period before triggering a hike. Most often, companies have a standard basis for their judgment. That is, the period of time the customer has spent with the company or the nature of the claim filed by the customer.

The Danger of Database

April 21, 2008 Information
No comments

 

database.jpg

Shiver in fear and tremble. When the insurance company places your name amongst those in THE database, you know you’re in trouble. Expect higher premiums, difficulties in obtaining new insurances, and loss of coverage as some of the things that will come your way once you’re in the blackballed list.

Most claims are recorded in one or both of the major known databases: CLUE (Claim Loss Underwriting Exchange) and A-PLUS (Automated Property Loss Underwriting System). Claims that are registered in the databases include homeowner claims and auto claims. Health insurance and others are not associated with these databases and are not registered.

Agency Writers Part 2

April 17, 2008 Information
No comments

price-competition.jpg

The reason why agency writers are not price competitive, is because the amount of commission that independent agents receive from them. To compare, captive seller agents receive only a commission of $100 while at agency writers, the agents receive 150 or even more direct from the premium.

So why buy insurance from them? Who in their right mind would want to buy insurance at a greater cost? The answer is that these agents will do whatever they can to accommodate you. While other insurers simply won’t cover you or will do so at staggeringly high rates, independent agents shop around and find deals that untrained eyes don’t normally see.

Agency Writers Part 1

April 15, 2008 Information
No comments

agent-writer.jpg

A last resort, if you will ever need one, is to turn to the agency writers. Why? Because most likely, the policy will turn out to be one that is not low-cost. Agency writers are companies most often represented by independent agents given commissions higher than in other places. Usually, an independent agent represents six or more agency writers. Why are they such in good demand? Well, a good agent is a storehouse of invaluable advice and information. The knowledge that a good agent harnesses are the reason why people fall into the habit of asking them and buying insurance from them.

Less is more when it comes to home insurance Part 2

April 3, 2008 Information
No comments

storefront_window.jpg

 

While an agent may seem like a good investment and a valuable resource, one can do the same work on his own while saving a lot of money, by as much as a 50% in savings. By doing leg work on your own, you eliminate the need for the middleman and the need to pay his over bloated commissions. Sure independent agents may be an invaluable font for information. But most of the time, deals offered by insurers over an 800 number are unbeatable in terms of competitive pricing. The good thing is insurers with captive sale forces like State Farm or Allstate write cheaper policies than these!

Less is more when it comes to home insurance Part 1

April 2, 2008 Information
No comments

small-house.jpg

After enduring a fight tooth and nail for the price of the new home and a thorough financial strip search that is a standard procedure in every process of getting a mortgage, you may now seem ready to relax your grip and walk the easy route when it comes to getting your homeowner’s insurance. In other words, you might be leaving all this hassle and work to your “friendly” insurance agent and hope for the best in finding the best deal.

This is quite simply put, A WRONG IDEA! Fighting tooth and nail to lower the price of the house while slacking off in home insurance is not the right way to save money. In the following articles, I shall explain why.