Checking on homeowners insurance, there seem to be some reputable companies (Farmers, etc.) that allow you to buy it online, without having to talk to an agent (you enter in what kind of coverage you want, the value of your possessions, blah, blah). We’ve got a condo and own nothing out of the ordinary or lavishly expensive. The idea appeals to me, because it seems remarkably no b.s. as compared to dealing with someone trying to sell you something, but I thought I’d ask here first. Anybody done this? Any potential drawbacks you can think of? Never had homeowners insurance before, so I don’t want to be stupid about it.
How the hell did this get in the Pit? Meant for GQ, obviously. I’ll alert a mod.
If you’ve never had homeowner’s insurance before I recommend going through an agent. A good agent will explain the ins-and-outs to you, and steer you to the right policy / coverage level. (There can be a surprising number of options, clauses and exclusions on an insurance policy.)
Typically, an insurance agent loses money in the first year of a customer relationship (the initial consult and paperwork takes time and thus costs them money) but makes it up in later years as you pay your premiums with hopefully little need for assistance. You may get taken a bit regarding the exact level of coverage, but you can always go the lower-cost route later. Myself, I have received good service from my agent, and I realize my slightly higher premiums vs. an internet insurer pay for that. I wouldn’t pay double, but 5 to 10% more is reasonable in my mind.
Why wouldn’t you want to talk to an insurance agent? They such friendly folk.
I know when I last got homeowners insurance they sent someone out to measure the house and calculate square footage and such. It might be something easiest done on a local basis.
For homeowners insurance talk to an agent. For renters go ahead and sign up online.
I’m going to move this to In My Humble Opinion instead of General Questions because it is really seeking opinions. Moved from The BBQ Pit.
Gfactor
Pit Moderator
My guess is that you can start the process online, but that an agent will contact you anyway before they’ll write the policy. I haven’t checked with every insurer, obviously, but none of the ones I have checked will write a policy with no interaction with an agent. You can get a quote and submit an application, but they won’t write the policy until an agent talks to you.
All I see on the Farmers Insurance site is that you can get a quote. Where does it say that you can buy a policy with no agent interaction?
I got a liberty mutual policy online with no agent interaction but that was for renters insurance. For homeowner coverage I highly recommend talking to a live person.
Even for renter’s, it’s a good idea to talk to an agent. There may be coverage you don’t need, and there may be riders that would be an excellent idea.
For example, we have a rider on our renter’s policy that covers replacement of spoiled food if the power goes out. It only costs a few dollars, and considering that our local power utility was smoking crack when they hooked up our neighborhood, it’s not a bad idea.