Sureshkumar, who needs Jersey City renters insurance writes in with today’s question.
Is it okay to buy renters insurance from a bank? My bank advertises huge signs offering home insurance, but because it is not an insurance agency I am worried about purchasing from them.
That’s a great question Sureshkumar, and you bring up a good point.
Should I Buy Renters Insurance From My Bank?
Many people discover that their bank offers more services than just banking. Often, these services include insurance. This leads people to ask if they should buy renters insurance from their bank?
Is It Okay To Buy Renters Insurance From A Bank?
You wouldn’t actually buy the renters insurance from the bank, you’d buy it from an insurance agency which is a wholly owned subsidiary of the bank. That being said, buying insurance from a bank means buying insurance from a company that’s branching out into areas they’re less familiar with. The inherent problem here is that to properly characterize risk and write the correct policy, you need to be an insurance expert. Does the person down at the bank fully understand you and your level of risk? Not likely.
What Could Happen If I Buy Renters Insurance From A Bank?
You could end up with nothing after a loss. If the policy isn’t properly written and there’s a serious loss, the chances of a claim being paid appropriately are near zero. We’ve seen condo insurance (walls-in) policies written for townhomes (owned entirely, requires structure coverage.) We’ve also seen worse than that when we provide policy reviews. The right type of policy and the correct writing company are important elements here. One writing company we know of has great prices for North Carolina renters insurance, but they’ll only write it if you have an auto policy with them as well. In some cases, the system will allow the policy to be issued, but then it’s cancelled 30 days later. This why you need a renters insurance expert who’s familiar not only with your needs and requirements, but also with the underwriting guidelines your policy is subject to.
Ever get a quote from a direct writer car insurance company and have it go up drastically after you give them your credit card? That can also happen. If the underwriter is reviewing your new policy and see’s something incorrect they’ll update it, which can significantly affect your rate. This is why you need to work with an insurance company you can trust.
Effective Coverage focuses on meeting the insurance needs of renters, and brings significant insurance experience to the table. Call (800) 892-4308 today to find out just how easy it is to get a renters insurance policy from the experts, and why you should let the banks stick to banking only.