Homeowners Insurance
Homeowners insurance in Georgia and across the nation is purchases to protect
most Atlantan’s largest single investment, their home. The rates for
homeowners insurance is relatively low compared to the amount of insurance
is offered for many reasons. It is impossible to steal a persons home like
one would steal a car, the land for the home cannot be distroyed under normal
circumstances and because the insured must have a place to rest their head
every night, most people take good care of their homes.
Fire, theft and natural disasters are the three main risks that people use
their insurance to protect against. Years ago it was acceptable to process
an insurance claim for a flooded kitchen floor that required replacement
or a stolen TV. These days any claim on a homeowners policy is major and
many times will lead to the insurance company not renewing the policy. There
is not law in the state of Georgia that requires an insurance company to
provide insurance continually. The insurance companies have the right to
cancel any policy they deem to be outside or over their risk assesment to
protect their assests and policyholders.
Two central reasons insurance companies like Travelers Insurance has become
so strict on their policy holders regarding claims is natural disasters and
the political landscape. If an insurance company is heavily vested in Florida
and a hurricane destroys 500 homes worth an average of 150,000 the amount
of payout the insurance company will have to be responsible for is $75,000,000.
Due to the increasing amount of claims nationwide and increased amount of
natural disasters insurance companies have been forced to become more strict
with their policy holders when it comes to claims.
The political landscape is another main reason that insurance companies like
Mercury Insurance has to tighten their belts. Politicians who have good intentions
force insurance companies in the state to insure a risk they would otherwise
avoid. When this type of unnatural force is acted upon the free market a
reaction will need to take place to balance the scales. If an insurance company
is overly insured in a high risk area it will balance that risk by tightening
their risk and exposure nationwide. They do this by not renewing marginal
risk clients who have made any type of claim. In a free market any force
placed on an insurance company will cause this balancing effect.
Purchasing homeowners insurance is a requirement in order to borrow money
from a mortgage company. For this reason most home loans roll the cost of
the insurance directly into the monthly payment to insure the property is
protected. Auto insurance does not protect itself against risk in this way.
The insurance policy payment is paid through the monthly mortgage payment
therefore many insureds will not check or compare their rates at time of
renewal to make sure they are getting the best rate possible. Insureds should
take the same philosophy regarding financial viability the insurance companies
do. Evaulate risk and cost yearly to make sure the policy you have is right
for your needs.
Call ABT Insurance today at (770) 441-0000. We have been in Atlanta providing insurance services for over 24 years. That is how we got such a sweet telephone number. If you are looking for the best rates, wonderful customer service and automatic rate reduction service call us today, email us or fill out the form at the top of this page.