All the fees and costs associated with buying a home can be financially overwhelming, and when it comes to purchasing homeowner’s insurance, it can be tempting to cut corners in favor of saving money. However, cutting corners can have disastrous results if your client chooses a policy with inadequate coverage simply to pay less each month. 

Most of us tend to think of insurance as an intangible – there in case we need it, but then again, we probably won’t. It can be appealing to buy a low-cost policy and think of it as a deal while not realizing the impact this “deal” may have at the time of claim.  No home owner wants trouble from their insurance company when trying to recoup property losses or amidst a bodily injury lawsuit.

It’s best to leave the professional advice to licensed insurance agents but it is important to inform your clients that they consider to what degree they are willing to live with risk. No one can foresee a burglary or fire, and while many of us never have to contend with such a misfortune, there are plenty of us who do – and that’s when adequate insurance coverage is essential.

Cheap insurance, while enticing, may contain its own hidden perils. Often, a lower insurance rate means an exorbitant deductible when filing a claim, and a homeowner should consider his or her ability and willingness to take on that risk. A low price might also mean that only certain aspects of a property are covered, such as the main building but not the contents or detached structures. Other policies may pay only for replacement of items at their original price, but not account for the current cost of replacement. Additionally, high-value items such as artwork, antiques, and expensive jewelry, may require additional coverage beyond a standard policy.

Home owners don’t have to “settle” for pricey packages in order to get the best coverage.  To make sure that your client is getting a good price on the best-suited policy for his or her needs, it’s essential to work with an agency who writes insurance for dozens of providers and can help identify the right coverage at the most competitive price. At G&N, we are fortunate to partner with local, national, and even global carriers, ensuring that homeowners who work with us will get the best available solution.

For more information from the experts over at G&N Insurance, visit www.insurewithgn.com.