Once we hang up the phone, our first step is looking up the property in the town property database. Even though we don’t use the tax valuation for insurance basis, the “field card” (a summary of your homes information) does give us a lot of valuable information-square footage, if there are decks or porches attached, any outbuildings, along with things like heating type, basement information and roof material. All of these things factor into the replacement cost of your home.
We take all the above information, plus anything we can find on public websites like “Realtor.com” or “Trulia.com” about your new home, and we calculate the “replacement cost” of your home. This is your coverage A, your Dwelling amount. This does not include the land and it is not based on resale value or tax assessment. It is strictly the cost to REPLACE your structure. The replacement cost of your home can fluctuate based on the cost of building materials and the cost of labor. Our agency prides itself on considering this when writing your policy, and adds an endorsement (a change to the policy) to increase your homes replacement cost-typically an additional 25% or 50% of what your dwelling coverage is.
Our account managers then take that number, and enter it into our rating software. We are lucky that we have a rating software that can calculate multiple carriers’ prices at once-we can change deductibles, add additional coverages you might need or want and get an instant quote. We take the best quote for you-based on your requests for coverage and the cost, and submit it through the web to the company website. We then start the process again, filling in underwriting questions about your insurance history, updates to the home, claims information, etc. The process can take a few minutes, and when done, we might need to go back to the drawing board, or, basically back into the rating software and uploading the quote to the next best company.
Once we find the best fit-if you have auto insurance with our agency, we’ll cross check to see what your discount will be on your auto if we write your homeowners with the same company. We check billing options, down payment amounts, and how you would like to receive your policy (email or by “snail mail”).
The next and final step for you to secure coverage is to sign the application.
This is just stating what is there is true, then we sign off on our end. We then collect any deposit your closing attorney may require, or the minimum deposit the company requires.
The final steps are sending a binder to the attorney’s office or your bank, which shows that you have purchased coverage and the policy terms. Then, we submit everything to the company when we know your closing has gone through! Changes can be made at anytime to add or increase coverage, change your deductible, or change your bank.
That’s a little snapshot of writing insurance for a new home purchase!
We’re happy to answer any questions at anytime during the process!
Remember, new home, refinance, or just looking for a different agent,
We’re Here for You!