Over the last two weeks, I’ve written about two different underwriting issues that can pop up; trust ownership of a home and buying a home that was foreclosed on (see https://wiseinsurancegroup.com/trust-ownership-home-insurance/ and https://wiseinsurancegroup.com/foreclosures-home-insurance/). I thought I’d add one more post which examines three more issues that may give underwriters heartburn – lead paint, asbestos, and open foundations.
The big word technology companies use when looking at the insurance industry is disruption. The thought process is if you can come up with the perfect approach, be it software platform, sales channel, or a different enough solution and you can disrupt an entire industry and perhaps build the next Amazon, Apple, or Uber. Do that and the next group of multi-millionaires or billionaires are created.
Buying a foreclosed home is not without risk. You could end up getting an amazing deal on a fabulous home or you could end up buying a money pit. One of the other risks associated with buying a foreclosed home is home insurance. Most people don’t realize, but not every home insurance company will write a policy on a home that’s been foreclosed on. Let’s look at why some companies won’t, some might, and for those where it’s not an issue.
Every insurance company has a set of underwriting questions I answer when writing or quoting a home insurance policy. Some of these will preclude a company from writing a home insurance policy such as the presence of certain dog breeds, foundation or roof types, etc. Others use the answers to these questions to confirm how the policy should be structured.
Last week I introduced how technology has changed and continues to change our lives. Technology advances are easier to see with companies such as Amazon, Uber, and Netflix, they are also leading to change in the insurance arena. Most of the technology changes in insurance have been in the “back office,” the area most consumers don’t see. As an independent insurance advisor, these changes make it easier for me to quote prospective clients policies, service existing clients’ policies, and even manage my business.
Technology has impacted our lives dramatically over the past 35 years. During that time, we’ve seen the birth of the distributed computing, the PC and Mac, networks, the internet, and smart phones. The iPhone I carry with me has more storage and computing power than the mini-computers I sold in the 1980s which cost hundreds of thousands of dollars. We’re not done changing. Companies, such as Amazon, Uber, and Netflix have changed the way we live and shop.
A friend of mine called me last week with one of the most unusual questions I’ve ever been asked as an insurance advisor. It turns out her father passed away before Christmas and she wanted to know how she and her siblings should handle the home and car insurance on their dad’s home and vehicles. The answer depends on many factors.
If you didn’t have to have insurance, be it car, home, or business insurance, would you? It’s an interesting question. Many people would probably say no simply because they don’t want to pay for it or think it’s a needless expense. Others would say yes, because they understand the purpose of insurance, even if they don’t care to pay for it.
Happy New Year! I hope you had a wonderful and safe Christmas and New Year! Sheri and I welcomed the New Year with friends at a lake house on Cedar Creek Lake. It was great to get away, unplug for a couple of days, watch football, fireworks, and hang out. It also gave me a little time to journal and think about things for the coming year.
2017 begins on Sunday. People are planning how they’ll spend New Year’s Eve and many are even thinking of New Year’s Resolutions and goals for the coming year. TV is flooded with commercials to lose weight, quit smoking, or join a gym seem to get in the best shape of your life. A new year is like a stack of clean paper begging us to write a better life story.
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