Newbie Question

Jul 2, 2016

  1. mplsmm
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    mplsmm Super Genius

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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?
     
    mplsmm, Jul 2, 2016
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  2. todd02
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    todd02 Guru

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    lol his agent is an idiot. 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.
     
    todd02, Jul 4, 2016
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  3. marindependent
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    marindependent Guru

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    What? Youd have to explain that again...
     
  4. Heather
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    Heather Guru

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    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.
     
    Heather, Jul 5, 2016
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  5. Schwetty
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    Schwetty Super Genius

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    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
     
  6. mplsmm
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    mplsmm Super Genius

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    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.
     
    mplsmm, Jul 6, 2016
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  7. Matt37
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    Matt37 Super Genius

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    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.
     
    Matt37, Jul 6, 2016
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  8. mplsmm
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    mplsmm Super Genius

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    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.
     
    mplsmm, Jul 6, 2016
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  9. Arnage150
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    Arnage150 Guru

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    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.
     
    Last edited: Jul 6, 2016
  10. HCCIA
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    HCCIA Expert

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    Write the homeowners in his name and add the LLC as an additional insured.
     
    HCCIA, Jul 24, 2016
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