{"id":119,"date":"2025-02-12T18:04:46","date_gmt":"2025-02-13T00:04:46","guid":{"rendered":"https:\/\/www.ssinsuranceservices.com\/blog\/?p=119"},"modified":"2025-02-12T18:04:48","modified_gmt":"2025-02-13T00:04:48","slug":"the-cost-of-cutting-corners-on-insurance","status":"publish","type":"post","link":"https:\/\/www.ssinsuranceservices.com\/blog\/the-cost-of-cutting-corners-on-insurance\/","title":{"rendered":"The Cost of Cutting Corners on Insurance"},"content":{"rendered":"At our agency, we recently worked on a quote for a homeowner who ultimately decided not to purchase from us. The reason? They didn\u2019t like what we had to tell them. But in insurance, the truth isn\u2019t always what people want to hear\u2014it\u2019s what they need to hear.<br \/><br \/>Roof Coverage: The Hidden Risk<br \/><br \/>The first red flag we noticed in their current policy was that their shingles were subject to a roof payment schedule. This meant that if they ever needed to file a roof claim, their payout would be depreciated by over 50%, on top of their deductible.<br \/><br \/>We explained that their current insurance company actually offers an endorsement for full replacement cost, which would have protected them from this costly depreciation. However, they quickly told us that they used to have that endorsement\u2014but after a rate increase last year, they called their agent to lower their premium. Their agent removed the endorsement, without explaining that it directly affected their roof coverage. The client mistakenly believed it only inflated the home\u2019s insured value and didn\u2019t realize the hidden cost of this change.<br \/><br \/>Underinsured by Over $100K<br \/><br \/>Unfortunately, that wasn\u2019t the only issue. After reviewing their policy further, we discovered that their home was underinsured by over $100,000.<br \/><br \/>Their response? They didn\u2019t believe it would cost that much to rebuild, so they were comfortable leaving it as is.<br \/><br \/>But here\u2019s the reality: People almost always underestimate the cost to rebuild their home.<br \/><br \/>Most homeowners arguing these numbers have never built or rebuilt a home. Even as an insurance professional, I wouldn\u2019t make an educated guess\u2014I rely on Reconstruction Cost Estimators. These are tools purchased by insurance companies from independent organizations specializing in construction and labor data. These estimators ensure that homes are properly insured to value based on current material and labor costs.<br \/><br \/>The Real Takeaway<br \/><br \/>So what\u2019s the lesson here?<br \/><br \/>If you call your agent and ask them to lower your rate, make sure you understand what coverages are being removed.<br \/><br \/>Many agents focus more on keeping your business (and their commission) than ensuring you have proper protection.<br \/><br \/>The cheapest policy isn\u2019t always the best policy\u2014it\u2019s about making sure you\u2019re covered when it matters most.<br \/><br \/>Get a Coverage Checkup<br \/><br \/>Your home is one of your biggest investments. Are you confident it\u2019s properly insured?<br \/><br \/>If you\u2019re unsure, let\u2019s talk. We can review your policy and help make sure you\u2019re protected, not just paying premiums. Contact us today for a coverage review!<br \/><br \/>","protected":false},"excerpt":{"rendered":"<p>At our agency, we recently worked on a quote for a homeowner who ultimately decided not to purchase from us. The reason? They didn\u2019t like what we had to tell them. But in insurance, the truth isn\u2019t always what people want to hear\u2014it\u2019s what they need to hear. Roof Coverage: The Hidden Risk The first [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[9,5,8],"class_list":["post-119","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-home-insurance","tag-oklahoma-city-ok","tag-s-s-insurance-services-inc"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts\/119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/comments?post=119"}],"version-history":[{"count":1,"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts\/119\/revisions"}],"predecessor-version":[{"id":120,"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/posts\/119\/revisions\/120"}],"wp:attachment":[{"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/media?parent=119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/categories?post=119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ssinsuranceservices.com\/blog\/wp-json\/wp\/v2\/tags?post=119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}