AIA Urges Consumers to Review Homeowners’ Coverage

June 23, 2005

  • June 23, 2005 at 3:23 am
    Roger Poe says:
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    Eric Goldberg Quote;

    “A homeowners’ policy is a contract between the policyholder and the insurance company. The insurer understands the terms and conditions of the contract – the policyholder should, too,” said Goldberg. “Your insurance agent or company representative will be happy to walk through your policy and answer any questions you may have. Completing an annual insurance check-up today could be much less costly than waiting until after a storm strikes to discover that you don’t have adequate coverage.”


    Many people are at a huge disadvantage when it comes to researching & purchasing homeowner insurance, in part because of their being unaware of behind-the-scenes issue’s that can affect their initial financial investment, and financial outcome after a loss claim is filed, per an insurance company’s contract…and business practices.

    The following questionaire and insurance / insurance company research guide may help ones in their need for making rational and informed insurance coverage purchases.

    A Quick & Powerful Do-It-Yourself Insurance Shopping Guide For Homeowners

    Insurers Research You For Financial Profit Potential.
    For Your Financial Protection, Research Your Insurer.

    What You, The insurance Company, The Insurance Agent-Broker and Claim Loss Adjuster Should Know About Coverage – Claim Loss Servicing.

    Advertising Spin Aside, Who Can Be Trusted With Your Insurance Protection Dollars?

    1.) For Agents: When calculating the potential future value of my home’s replacement costs, (the policy contract premium payment), are New construction or Reconstruction cost factors being used for my area?

    New Construction____
    2.) For Agents: If I have a claim, will Reconstruction – Repair costs be used to settle my claim, or will New construction costs be used? (Reconstruction costs can easily be 35-50%++ higher. Also, leaving out premium prepaid contractor overhead and profit values that are part of [full or partial] replacement cost losses, can reduce a claims loss value by an additional 20-49 %++.)

    New Construction_____

    3.) For Agents: What all options does the insurer offer for lowering the financial risk of my property for the insurer? (For accuracy, get an initial quote first…then ask how security-fire-smoke detectors, window shutters, combined asset coverage and etc. property protection options, and possibly, a reasonably higher deductible, can save you money.)

    In Florida, ask about one deductible for the whole hurricane season type coverage. Keep in mind that chances are (statistically) slim that multiple hurricanes are a threat.

    4.) For Agents: Are you referring me to an insurance company that pays you higher commissions than another insurance company? Yes_____No_____

    5.) For Agents: Generally, what percentage of my premium dollar taken in will be repaid, by various insurance companies, to claimants? (Example; Does a company pay out for losses at 27 cents on every premium dollar received, or 77+ cents?)

    You will need information from a few insurers to make a comparison. You should have an agent-broker that helps with that information. The insurer that pays out more may even be less problematic when claim losses are being adjusted. They may even be quite competitive cost wise, verses “less expensive” major name brand insurers who may have a poor claim settlement history.

    6.) For Agents-Adjusters: How does the insurance company estimate the dollar reserve value of a claim loss? (Example; Does their claim loss settlement practice represent paying out 25-50-100 % of what their adjusters estimate the claim loss dollar reserve value is actually (100%) worth? Answer_________%

    7.) Does the insurance company have a poor claim settlement archive history? (What does Google, and other online-internet research sources show when you type in the name of an insurance company along with words like; deceit, fraud, FBI, lowballing, unfair claim settlement practices, underpaid claim reserve dollars, unpaid contractor overhead and profit and etc. insurer conduct research words?) Yes____No____Maybe____

    8.) Does the Better Business Bureau, the Department of Insurance, Attorney General Offices, the Courts, the FBI, the Department of Justice or other agencies research show that the insurance company is not really consumer friendly? Does basic – careful internet research (verses television-newspaper advertising) indicate that the insurance company is a risky and unnecessary investment? Yes____No____Maybe____

    With credit report history’s, and other statistical information, helping insurers determine psychological / risk / premium value profiles about whom they do business with, consumers need to look into the way that a given insurance company’s business history reflects on their “way” of conducting their personal business culture affairs.

    Insurers avoid bad investment risks.
    Consumers should avoid bad insurers.

    -Roger Poe –
    Open Copyright Permission

  • June 29, 2005 at 7:37 am
    Jenifer says:
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    This is to deep for the average consumer. I am a agent and most people do not even know how to read thier policy. I think you should start there before explaining how to seek payment in a claim situation. 90% of my new customers are now my customers because I take time to go over coverages and the meaning. Maybe maybe the agents don’t understand the coverages either (:o

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