Call Us: 800.711.9386 Claims: 866.281.2242
Call Us: 800.711.9386 Claims: 866.281.2242
There are a number of ads out there promising auto or homeowners insurance for extremely low rates. The ads make a big deal about the low price, but they never really tell you what you will get for that price. That is where it gets tricky. While there is nothing wrong with searching for, or even getting, a great deal, it’s important to remember that if something goes wrong, and you have to turn to your insurer, you are going to want some real help.
The saying goes you get what you pay for, and with your insurance, those words hold true. Here is a look at the dangers of buying cheap insurance.
Cheap insurance may not be real. Really. A 2015 report from the National Association of Insurance Commissioners found from 2000 to 2002, the U.S. Government Accountability Office found more than 144 fake insurers nationwide. Those insurers had over 200,000 policyholders which ended in $252 million in unpaid claims.
Even if your cheap insurance is real, you may be severely underinsured. Many people get burned by cheap homeowners insurance. They save money upfront on their premiums, but there are so many restrictions when they try to file a claim or get real help. You may find that your bare bones policy does not cover what you think it did (perhaps you have had fire damage and the coverage is inadequate to rebuild, or you have had water damage and the insurance company, says they don’t cover ‘that kind’ of damage).
Often these cheap homeowners policies simply do not allow enough coverage for you to bring your home back up to code after major damage; they will not cover things like living expenses, debris removal or landscaping to name a few.
Begin by researching your insurer. Simply head to your internet browser and search for the company. Does yours have a strong rating? Look for Better Business Bureau information; are they endorsed by the BBB? Do they have a number of unsolved complaints?
Can’t find anything on them? That is a big red flag telling you this company is possibly one who is ‘fly by night’ and won’t be there for you.
Next, make sure to read your policy. This sounds like common sense, but many people don’t take the time to read their insurance contract documents. If you don’t have a copy of your policy, call your company or agent and ask for a recent copy. Look for any language you don’t understand and ask your agent to explain it to you. They will be happy to explain it to you.
Finally, if you find red flags or huge problems, change companies!
Insurance is about managing risk and protecting yourself in the event of a loss or damage. There are real dangers in buying cheap insurance and buying cheap could cost you a lot in the long run. Remember, you get what you pay for.
Olympus Insurance Company is revolutionizing the Florida homeowners’ insurance market. With quality homeowner insurance products, financial strength and superior service, you can be confident that Olympus is here to stay. Our uniquely disciplined organic growth strategy differentiates us from many other Florida insurers. The emphasis on steady, conservative expansion continually strengthens our financial position and enables Olympus to provide the finest possible service to Florida property owners. Agent or homeowner, inland or coastal, doing business with Olympus always means peace of mind.
This article is for informational purposes only and does not form a part of, replace, change or amend any terms, conditions, provisions or language within your Olympus Insurance policy. We encourage you to read your entire policy.