Cheap home insurance is expensive

How Ken responded to a cheap homeowners insurance quote in the mail and he discovered after a claim how expensive cheap insurance can be

I wish I could tell you all licensed insurance agents are insurance advisors but as we discovered recently they are not 

It is the same in any profession

Short money hustlers will always exist

In our industry there are franchise owners working on reduced commission and they have to play the numbers game

They need to “make the numbers” so they are getting aggressive to be the cheapest rate in town


Ken had been with a good insurance company for a few years but he was looking to save money and he received a letter in the mail with a cheap homeowners insurance quote

It was much less than what he was paying so he decided to follow up with the insurance agency and he ended up buying the new policy

About 5 months later a water line collapsed under his slab

Water began backing up into his home from the bathroom toilet and ruined his floor

He tried calling his new agent but no one would return his call

He decided to call the insurance company direct and file the claim

The insurance company told him he had no coverage for the damage

Mr. Ken didn’t know why his claim was denied


We met Ken when he was looking for a new agent and a new insurance company

I explained to Ken that his homeowners insurance policy didn’t include 

Water Back up and Service Line Protection

With these two inexpensive ($50/yr?) coverage add ons Ken would have had his entire damage claim covered minus his deductible

What local insurance agents are doing now is removing coverage endorsements or add ons  to make their homeowners insurance quote “cheap” to new homebuyers and existing home owners


Here is a recent article about the 5 coverage options removed by insurance agents

5 coverage options you need when buying a new home

In the end Ken had to pay for all his damage out of his pocket but we moved him to a larger insurance company, UPC, that covered water back up and service line protection

We gave him a lower deductible and a lower rate than his “stripped out” policy from his previous agent

If you want us to review your current homeowners insurance to review your coverage and rate and make sure you are getting the protection you need request your homeowners insurance renewal review