Homeowners Insurance

Homeowners insurance in Georgia and across the nation is purchases to protect most Atlantan’s largest single investment, their home. The rates for homeowners insurance is relatively low compared to the amount of insurance is offered for many reasons. It is impossible to steal a persons home like one would steal a car, the land for the home cannot be distroyed under normal circumstances and because the insured must have a place to rest their head every night, most people take good care of their homes.

Fire, theft and natural disasters are the three main risks that people use their insurance to protect against. Years ago it was acceptable to process an insurance claim for a flooded kitchen floor that required replacement or a stolen TV. These days any claim on a homeowners policy is major and many times will lead to the insurance company not renewing the policy. There is not law in the state of Georgia that requires an insurance company to provide insurance continually. The insurance companies have the right to cancel any policy they deem to be outside or over their risk assesment to protect their assests and policyholders.

Two central reasons insurance companies like Travelers Insurance has become so strict on their policy holders regarding claims is natural disasters and the political landscape. If an insurance company is heavily vested in Florida and a hurricane destroys 500 homes worth an average of 150,000 the amount of payout the insurance company will have to be responsible for is $75,000,000. Due to the increasing amount of claims nationwide and increased amount of natural disasters insurance companies have been forced to become more strict with their policy holders when it comes to claims.

The political landscape is another main reason that insurance companies like Mercury Insurance has to tighten their belts. Politicians who have good intentions force insurance companies in the state to insure a risk they would otherwise avoid. When this type of unnatural force is acted upon the free market a reaction will need to take place to balance the scales. If an insurance company is overly insured in a high risk area it will balance that risk by tightening their risk and exposure nationwide. They do this by not renewing marginal risk clients who have made any type of claim. In a free market any force placed on an insurance company will cause this balancing effect.

Purchasing homeowners insurance is a requirement in order to borrow money from a mortgage company. For this reason most home loans roll the cost of the insurance directly into the monthly payment to insure the property is protected. Auto insurance does not protect itself against risk in this way. The insurance policy payment is paid through the monthly mortgage payment therefore many insureds will not check or compare their rates at time of renewal to make sure they are getting the best rate possible. Insureds should take the same philosophy regarding financial viability the insurance companies do. Evaulate risk and cost yearly to make sure the policy you have is right for your needs.

Call ABT Insurance today at (770) 441-0000. We have been in Atlanta providing insurance services for over 24 years. That is how we got such a sweet telephone number. If you are looking for the best rates, wonderful customer service and automatic rate reduction service call us today, email us or fill out the form at the top of this page.