Newbie Question

mplsmm

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Ok, I have a family member who has an amazing house. Brand new, all of the bells and whistles but is so cheap he squeaks so I have never looked at his stuff in depth. At dinner he mentioned his American Family agent has him with a homeowners and a renters policy so he gets the best coverage cheap. I am pretty new and may take a look at his stuff but why would an agent do this? What is the benefit and how can I talk intelligently about this option. The only thing he mentioned was lower deductibles, is that using the renters for contents? Should I be doing this?
 
lol his agent is an ***. No don't do this. He is attempting to cheat the system. He doesn't rent he owns the property. The insurance company will file an E&O claim against the agent if something happens.
 
I did have a client who purchased a fixer upper in very bad condition. The only coverage I could get them was a very limited dwelling fire policy. The insurance company had me offer the family a second policy which was a renters to get better contents and liability coverage. The is the one and only time I have ever done this. A year later when the home was brought up to code the insurance company requested that the policies be re-written ina traditional home owners.
 
Ask to see his Dec Sheets since he is a family member so you can make sure he is properly covered.

Most home policies that I know of include 50-75% of the dwelling coverage amount for personal property coverage so I'm not sure why he would need a renters policy unless the agent is a little shady.

This doesn't sound like Heather's example of a fixer upper at all.

Red Flag are waving. Get those Dec Sheets
 
Yeah, he isn't showing me anything. He thinks he and the agent are putting one over on the man. Nice brand new houses don't burn down or get damaged. I probably don't want him as a customer anyway.
 
Since you are a newbie I will give you some advice...

a good portion of the agents out there that are licensed don't know their a$$ from a hole in the ground ....

There are many walking E&O's out there.
 
Since you are a newbie I will give you some advice...

a good portion of the agents out there that are licensed don't know their a$$ from a hole in the ground ....

There are many walking E&O's out there.

I am starting to figure that out. As a newbie, I read everything and am always trying to learn something new and some of the agents I meet seem like they have no clue. But of course they are all making more money than I am right now.
 
He could own the house under and LLC and rent it to himself personally.
I've never heard of anyone doing a renters and a dwelling fire policy instead of just doing a HO policy. There has to be a reason. Get a copy of the dec pages and you will have more info. My guess is he doesn't own the house personally.
 
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