As far as Homeowner’s Insurance coverage and how much to insure your home for we have this discussion quite a few times with many of our clients (as well as potential clients). When you call for a quote we ask you all types of detailed questions regarding your home. One of the questions that we don’t ask is what the value of the home is. The reason for this is simple; we offer (through the insurance contract) to make your property “whole again” under a covered peril. If we are doing our jobs correctly we ask all of the questions that we use the formula the industry uses to formulate the replacement cost.
Humor me… should you be fortunate enough to buy a beautiful home that is 2,200 square feet and you get it for lets say $200,000 in today’s market. If we were to insure your home for the mortgage amount of $200,000 you couldn’t necessarily replace your home if it were a total loss.
Based on current market price homes cost somewhere between $125- 150 a square foot to build. At 2,200 square feet your home would cost closer to $275,000 to replace.
This is where Customer Service comes in to play. It would be easy when you call in to under cut “any other agent” that you might be getting a quote from and keeping the premium low so that we close the sale. It would be easy to just give you what you want. That’s not what the job is though, especially not today. Sometimes what you want and what you need are truly two different things. Price is always a factor but you also want to make sure that you have a quality company. Scott Maxwell of the Orlando Sentinel did a piece back in April of this year talking about homeowner’s insurance and cost that talked about this same thing.
One of the great things about working with my beautiful wife is that some of her analogies make this business so crystal clear. Lori simply says that she never wants to be the one to have to tell you that though she’s sorry for your loss but the policy that she sold you wouldn’t pay to rebuild your home fully.
Ok so here’s the “Common Sense” part of this piece; if it sounds too good to be true, odds are that it is. If your agent isn’t taking the time to really get to know and understand you and your family, maybe it’s time to find someone who will. At Birchell Insurance Agency, we care; making insurance easy, that’s what we do.
Give us a call at Birchell Insurance Agency 407-936-1572 or 800-978-8813 if you’re out of the area; we’d be happy to answer any questions that you might have. Think about it, you’ve got nothing to loss and just might have a few dollars or more to gain.