Affordable Dwelling Insurance

Get In Touch

Mailing Address:

P.O Box 340004

Austin, TX 78734

I Don't Buy Cat Food...

I don't buy cat food because I don't have a cat. That would be foolish. We're dog people. I try hard to not buy things that I don't need. Well, my wife might disagree with me on that one. She wonders when another box of cigars shows up in the mail, or when I smoke a whole brisket when only 6 folks are showing up for dinner. I try to explain the "need", but I'm pretty sure that she isn't buying it.... just tolerating it in a "you silly man and your toys" kind of way. However, when it comes to cat food, we both agree on that one for sure. We definitely don't need cat food and don't buy it. However, I see folks buying insurance coverage limits that I strongly suspect they don't need, but are automatic company standard percentages.

With the turmoil in the current insurance market, we are seeing a surge of new business from both new and old agents. So, I look at a whole lot of quotes every day and have noticed a trend. A lot of quotes seem to be wanting to buy more contents, other structures, and loss of use coverage than the client needs. I totally get it. Most insurance companies typically automatically "give" customers 60% to 75% of the dwelling coverage in contents coverage, 10% to 20% for other structures and for loss of use. It is really tempting to just try to duplicate coverages from one carrier when moving to another carrier.

But does that make practical sense? I've had this debate a couple of times with my insurance company. There is no way that I have 75% of my house value in contents. The answer is always the same....sorry sir, but that is our standard amount, and it can't be changed. The problem for me is that I am paying for that coverage that I don't need. The same thing is true for things like other structures. I've only got a fence in my back yard which certainly wouldn't cost the tens of thousands of other structures coverage that I'm paying for in my policy.

So, I thought that it would be good to remind you that we tackled this standard insurance company silliness years ago. We give you a wide range of choices for contents, other structures, and loss of use to provide the limits that your clients actually need. For example, our homeowners policies offer the following.

A Contents range from 0% to 75% of Coverage A.

Other Structures range from 0% to 20% of Coverage A.

Loss of Use range from 0% to 20% of Coverage A.

So, if you want to try to save your customers money in these crazy premium times, ask them what coverage limits they really need. It could really save them money on their insurance which is much better than giving it to me for limits that don't exist. Do they even have any Other Structures? Do they really need $80,000 to rent a house while their house is being repaired? How do you fit $225,000 of contents into a 1,300 square foot house? OK, let's not get into my wife's expansive collection of shoes....that is a whole different story.

It may be that the coverage limits that your clients currently have are just what they really need. It may also be that these limits were all just "given" to your customer as automatic limits by their previous insurance company giving you the chance to be a hero and save them money.

If you haven't quoted us in a while, please give us a try. It is quick and easy to quote and bind a policy with us. If you have any questions or need any help, please reach out to us at (512) 494-4164 or through our Contact Page.

In the mean time, if you have any ideas on how I can convince my wife that we NEED an 80 inch flat screen TV, please let me know! As always, we thank you very much for your support.

← Older Post

Newer Post →