The Numbers Are In: Many of Your Clients Likely Don’t Have Enough Home Insurance

Are your clients adequately covered? Liability insurance is one of the major components of a home insurance policy, in which many homeowners are uncertain about deductibles, don’t understand coverages, and don’t know how much liability insurance they have. They simply may not understand how their policy works. It is not uncommon for many homeowners to not even read their policy, leaving them vulnerable and underinsured.

Understanding Their Policies

With all the confusion around coverage, many of your clients likely end up underinsured. Understanding replacement cost is a big one! A study found that only about half of policyholders know it’s the cost to repair damage to their home or rebuild it completely at equal quality at current prices. One-third of participants believed replacement costs deal with personal items damaged or stolen at a depreciated value. Others were under the impression it was the amount it would cost to rebuild with the same materials used during construction, thought it was the same as the market value of the home, or had no idea.

When it comes to personal property coverage, 29 percent thought it replaces all of the items in your home, 7 percent thought it replaces trees and landscaping, 4 percent thought it just covers valuable items, such as jewelry, antiques, and art.

There are still so many homeowners likely to be surprised if they file a personal property home insurance claim, and could end up in financial ruin, just from not thoroughly understanding how much coverage they have and need. Plus, with all the misconceptions about deductibles, it is in your best interest to be very clear when informing your clients about these from the beginning. 

Special Circumstances 

How long can your clients sustain their property if a disaster were to strike? Without proper coverage will they be able to continue to support their household? These are questions that clients must consider.

Have they taken on any renovations? This usually increases the value of the home, calling for more coverage. Do your clients have enough insurance to cover renovations without their coverage adapting to the changes? Plus it’s crucial that clients inform you about something that could add more risk. The study found that 31 percent of people who added a pool or trampoline and 52 percent of people who brought a dog into the family didn’t let their insurer know. Encourage clients to be upfront, honest, and ask questions.

About AmSuisse

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.