"So how much will it cost to insure my home?"  After answering some of my questions I tell him, "that will cost 550$ per year and...."  I explained the main coverage that he got with that policy.  He said thanks, but the other company will cost 500$ for the same coverage.  My reply was with surprise especially since Farmers has additional coverage standard to their policy, but costs extra with many other companies.  Of course my reply was, "well I can understand that, but....."  at which point I proceeded to try and explain why he should insure his home with Farmers.  It was clear that he tuned my answer out and had made up his mind that he was buying the same policy for 150$ cheaper.  First off let me tell you when you are shopping for a policy that is going to protect one of the largest assets that most people own, is saving 50$ per year really that important?

I now continue with the story.  This gentleman that I talked with was referred to me by another client of mine.  A few months after we talked I got a phone call from my client that referred the gentleman.  He was beside himself with concern and frustration.  I asked what was going on and he replied with, "What would happen if our home were to burn down?"  Apparently the gentleman I talked with earlier had a fire and the company he went with would cover the home, his personal property, but would not provide living expenses for the family to live elsewhere while the home was being rebuilt.  My client wanted to make sure that he had that coverage.  My reply was simple and proud, "Yes, you are covered for that." 

The gentleman saved 4.10$ per month only to have to pay 40.10$ per day at a hotel.  WHO KNOWS HOW MUCH IN HOTEL COSTS HE PAID.  I am guessing that rebuilding a home takes a few to several months at a time.

Car Insurance is pretty hard to skimp on.  Most car policies are the same.  The biggest difference is whether or not you have deductibles, towing, rental car, etc.  But your home policy is very easy to skimp on.  I understand wanting to save money in this economy, but how much do you think the gentleman saved?  Easy he saved 50$ in a year, so that he could set himself up to pay a few thousand for something that wasn't important to him.

Please look at your policy.  Should you have questions contact the company and ask them to make sure you are covered.