So you open your mail and see a quote from ABC Insurance Agency "tailored just for you!" You look quickly and think "Wow, this looks amazing!"
Remember this saying- "If it seems too good to be true, it probably is".
Because what you see may not be true. In fact, most of these "custom quotes" are just guesses based on general information. The motive is simple: for you to call and ask additional questions to get the right numbers. I do not encounter in this way in any way – I just want you to be aware that what you see is NOT a fixed number that you can take to the bank.
We see this type of call more often for homeowners. insurance, so let's talk about how it works.
How the "Custom" Ohio Homeowners' Insurance Calculation Is Calculated
So first, before anyone shouts "Invasion of Privacy", the county auditor's registry / website is PUBLIC information. So anyone can look up tax records and get basic information about properties (owner, transfer history, sale price and general facts about the house).
Someone can easily locate all the houses in an area and use that information to send out "customized quotes". The premium is determined with the help of the fees submitted to the insurance department.
Here is an example of how it is done:
- The insurance company decides a certain area in the city, perhaps a newer development. It finds all the streets in that development and then also all the house numbers. So now they have a list of all the houses in development.
- Each address is available individually on the auditor's website, along with the owner's name and postal address and estimated value.
- The custom quote is actually a template that offers standard coverage. All the insurance company needs to do is reduce the amount of coverage for the home (eg estimated value) and the rest of the information is filled in (coverage B-independent structures and coverage C-personal property is based on a percentage of the home coverage)
- An estimated premium is generated based on the interest rates submitted.
Insurance companies have a "base interest rate" ̵
So for example, the base rate for a frame house in your territory or zone (based on address) is $ 700. Chances are good, that's the annual premium you see on the quote. But remember – this is an estimate.
What You Need to Do to Get the "Right" Premium
If you're not in the insurance business, you honestly have no idea what's actually included in an Ohio homeowners quote. I'm here to tell you that HUNDREDS of grade variables help determine the final premium, which includes YOUR individual information. It is never a size that suits everyone.
Honestly, I've seen so many of these flyers that I laugh out loud. What you see is a total guess. And often not so close to the real thing. But if you are interested in exploring the quote further, here is what you need more to get real numbers.
- Your identifying information – including date of birth and social security number. Insurance points are an important part of rating an insurance policy in Ohio. Although there is much debate about the value of insurance points, potential discrimination and legality (it is legal in Ohio), the fact remains that it is used by the majority of insurance companies to determine your insurance premium. For more information on how and why insurance companies use credit history when determining premiums (along with helpful tips for improving your score), read " What You Need to Know About Insurance Credit Rating " from the Ohio Insurance Department.
- Insurance of homeowners is determined by means of compensation cost, not estimated value. Compensation cost is the cost of repairing or replacing at today's cost. Estimated value is used for sales and purchase purposes. The two are NOT the same (except for a brand new version). So the housing amount is probably very different (and probably higher).
- And if we talk about compensation costs, the auditor's website contains only basic information about a house and is unfortunately not always up to date. We need to collect detailed information about your house so that we can produce a correct replacement cost. Examples are: type of foundation, exterior wall material, roof type, interior wall finish, floor, number and type of bathroom and additional features such as decks, porches and garages. From time to time, we have the information to correctly determine the amount of housing.
- Do you have any special items included in your current policy, such as scheduled jewelry, weapons or musical instruments? These are simply supplements to the homeowners policy, but have a cost and therefore affect the final premium.
- And unfortunately not all houses are eligible. Ohio homeowners insurance companies have eligibility rules to insure the home. Examples include: property updates, approved animals, protected pools, properly installed extra heat sources (think wood stove) and the general appearance of the property.
As you can see, there is a lot of information needed to give you an exact premium. But is that not what you really want and not a guess?
We are all dazzled by the quick quote, but what you see is not necessarily what you get. Without detailed information, you do not know if you have enough to rebuild your house should the worst happen or if the premium is realistic for your budget. ) 592-4871 or fill out the form below. We get the coverage that is right for YOU with a premium that is right the first time.