Why You Should Not Save Money on Home Insurance in Cincinnati?

Don’t fall for the trick of purchasing cheap home insurance Cincinnati.

The biggest mistake you could make is reducing coverage to save money on your insurance. You could inadvertently save a small amount of money now, but cost yourself tens of thousands of dollars later.  

Call the Cincinnati homeowners insurance experts with Pathway Insurance at 513-662-7000.

We can help you design a homeowner’s plan that takes a balanced approach between reducing cost, and not reducing benefits.  Or for an online insurance quote click: Home insurance Cincinnati.

Why Saving Money On Insurance Can Cost You Money?

Isn’t it true that every single insurance company advertising on television tells pretty much a universal story on how important it is for consumers to save money on insurance? It’s true.

However what companies typically do not advertise is how insurance can save you financially in the event of a catastrophic claim.

Consumers have been misled into believing that the only thing that matters is the price you pay for the insurance, this is far from the truth.

Why?  Insurance is far more complicated than the price you pay for it. ™

This Is How Insurance Is Different between Companies

There are 4 specific factors or elements on insurance that consumers need to understand and take into consideration before they make a decision to change to another insurance company.

Each one of these areas can have an impact on you financially. What are the four factors?

1. Insurance policies are not identical
2. Claims reputation differs between insurance companies
3. Insurance endorsements can add or take away coverage from your policy
4. Are you given insurance education by your company? (Knowledge is power.)

Let’s discuss the first area, which regrettably is one of the most important factors that consumers pay absolutely no attention to because we have not been taught that it is something that’s important for us to pay attention to. But it’s an area that could literally cost you tens of thousands of dollars out of pocket if you have purchased the wrong insurance policy.

Did You Know Homeowners Insurance Policies Are Not Identical?

Certain insurance companies by means of television advertisements have attempted to subtly convey the opinion that the only difference between insurance policies is the price that you pay for that protection. That is absolutely not the truth, here is the reason why.

There can be many major differences in home insurance protection and coverage between companies. So you can have the same property coverage limits and deductibles on your homeowner’s insurance policy, but the claim results can turn out completely different between company to company, because of the language in the insuring agreement of the insurance policy itself.

In a new book that I am publishing, I will give actual examples of how a particular homeowner’s claim could be covered with one insurance policy, but would be denied by another insurance policy.

First Thing You Need to Know about Insurance

When you are looking for Home Insurance Cincinnati, the very first thing that you have to understand is that insurance policies are not identical. There can be significant differences between insurance company policies that could cost you a large sum of money if you are not aware of those differences.

In a future article we will discuss why the claims reputation of your insurance company is important.

If you are unsatisfied with your current insurance carrier why not give us a call? We offer the most competitive rates on Home Insurance Cincinnati. Our office number is 513-662-7000 or you can receive an online home quote by clicking on:  Home insurance quotes Cincinnati.

Call 513-662-7000 and speak with one of our insurance professionals. 

Our Cincinnati independent insurance agency can help you find competitive rates through a number of top rated insurance carriers.

Rates On Homeowners Insurance in Cincinnati Are Increasing.

If you own a home you likely noticed that your homeowners insurance in Cincinnati has gone up.  In fact some Cincinnati insurance policyholders have received as much as a 40% increase in premiums. 

Why are rates going up?  There are a few different reasons why homeowner’s insurance rates in Cincinnati are increasing.

Hurricane Ike-Despite the fact the infamous hurricane occurred in 1998 the after effects of over a billion dollars paid for that one claim in the state of Ohio is still affecting insurance premiums years later.

Storm related activity is at an all-time high – Insurance companies have been pummeled with property losses over the last 10years and because of unexpected property losses, insurance companies pass those costs on to their policyholders.

Don’t Skimp on Your Cincinnati Homeowners Insurance Coverage, Because You May Regret It Later.

If you get a big rate increase on your homeowners insurance in Cincinnati don’t make the mistake of skimping or reducing your insurance coverage. 

That could be a huge mistake at claim time. 

A person called our office to obtain quotes on homeowners insurance as they received a fairly substantial rate increase on their Cincinnati homeowners insurance policy.  

After completing an analysis of their coverage, we discovered that they were underinsured by more than $90,000.  We could save them money if we insured their home for the exact amount of coverage that they had with their Insurance Company. 

However because they were vastly under insured we could not save them as much money as they hoped based on our initial estimates.

If you shortchange your homeowners insurance coverage you could regret it later.

Not All Homeowner Insurance Companies in Cincinnati are Raising Rates.

If you receive a substantial rate increase on your homeowners insurance, give us a call at 513-662-7000.  Not all insurance companies have taken such drastic measures.  Recently we were able to save one new policyholder with our independent agency more than $800 on his homeowner’s insurance policy! (Better coverage too)

We can help you choose the best homeowners insurance coverage options for your individual needs. 

Insurance companies in Cincinnati advertise essentially the same message. We can save you money on your insurance call us for a quote.

The problem with assuming price is the most important factor in the decision making process is that not all home insurance policies are identical.  You can have the same limits or liability and property coverage, and the claims result can be different!

So in other words it can be a mistake to make a buying decision purely on the price you pay for your homeowners insurance in Cincinnati!

The Most Common Type of Homeowners Policy Sold has Big Gaps In Protection!

For example the most common homeowners insurance policies sold across the country is the HO3 homeowner’s policy form. Your insurance company may not call it the HO3 policy they may call it the “Protector” homeowners insurance policy, or some other sophisticated name that depicts a sense of security for their policyholders, but in reality it’s a standard HO3.  

Additionally insurance agents and companies may not tell you that a much better homeowner’s insurance endorsement could be available to you for only a small increase in price that increases your protection significantly.

In a previous article we discussed how the HO3 homeowner’s insurance policy would exclude coverage for mysterious disappearances of jewelry.  You can read this article by clicking here.

The HO5 homeowner’s policy could provide coverage for mysterious disappearances of jewelry whereas the HO3 would exclude it simply because it is not named as a peril in the policy that would be covered. (There may be internal limits check your individual Cincinnati homeowner’s insurance policy for details if you have the HO5 policy.)

The HO5 Homeowner’s Insurance Policy Is a Superior Policy. Why?

The HO5 homeowner’s insurance policy eliminates named perils coverage. Notice this coverage definition with one insurance company:

We cover risks of direct physical loss to property under the Dwelling, Other Structures and Personal Property Coverages, except for losses excluded by the exclusions in Section I of your policy

In contrast the HO3 homeowner’s insurance policy requires that the event that caused damage to your personal property be named in the policy.  If something damages your personal contents and it is not named in the policy, coverage would not apply. (This leaves you open to hundreds of different claims scenarios in which coverage would not apply under the HO3, but would be covered under the HO5.) 

Choose Your Homeowner’s Insurance Policy Carefully, but Choose Your Cincinnati Insurance Agent Even More Carefully.

What Is Home Insurance and How Does It Help Me?

If you own a home, condominium, or rent an apartment you can be covered by a homeowners insurance policy form.

Technically there are six different versions of a homeowner’s insurance policy. Click here to read about each individual homeowner’s policy in Cincinnati.

A homeowner’s insurance policy (depending upon the specific policy form) protects the home itself, detached structures on your property, your personal property, and can even provide money to cover extra expenses while your home is being repaired or rebuilt.

Additionally a home insurance policy can provide liability protection against claims or lawsuits involving damages from bodily injury or property damage. Your Cincinnati homeowner’s insurance policy can also cover medical payments to others.

The Most Commonly Purchased Home Insurance Policy in Cincinnati Is the HO3.

Is this particular home insurance policy the best for your circumstances?  It depends on your individual insurance needs. The biggest disadvantage with the HO3 homeowner’s insurance policy is that your personal property (Coverage C) is only covered if the direct physical loss is caused by one of 16 different perils. (Some companies may only insure against 15 named perils.)

Click here to read a list of the covered perils in the HO3 Home Insurance Policy.

So in other words if something happens to your personal contents of your home and it is not listed in one of the named perils it will not be covered.

We Can Help You Find the Best Homeowners Insurance in Cincinnati

Because we are an independent insurance agency in Cincinnati we have the ability to shop for the home insurance policy that is best for your individual circumstances and needs.

Call 513-662-7000 to speak with a homeowner’s insurance expert in Cincinnati, or contact us by e-mail: Jack@pathwayinsurance.net

Contact us by calling 513-662-7000 to speak with our highly qualified insurance professionals to help you choose the best policy for your individual needs. 

We offer the most competitive rates on homeowners insurance in Ohio, Kentucky, Michigan, Indiana, Tennessee, and Georgia.  If you do not live in Ohio, Kentucky, or Indiana click here to request online home insurance quotes from top insurance companies in your area.

There Are Six Specific Versions of the Homeowner’s Insurance Policy:

HO2– This homeowner’s insurance policy features coverage for the home itself, detached structures such as a garage, barn or shed. (Gazebo’s too) also this policy form makes available money to provide for extra expenses that you incur while your home is being repaired or rebuilt.  Finally personal liability coverage and medical payments is available as well. (We do not recommend that you purchase this policy form due to name perils coverage on the home itself. You can click here to read about named perils coverage.)

HO3– Is a home insurance policy form that is superior to the HO2 because it offers better protection than the HO2. The HO3 provides all risk coverage to the dwelling itself, minus the exclusions listed in the insurance policy. (Insurance companies now use this term to refer to all risk coverage: We cover direct physical loss to property insured under Coverage A – Dwelling and Coverage B – Other Structures except for losses excluded in Section I – Property Protection Exclusions.) Your personal property or contents coverage is insured against 16 different perils. Click here to see what the 16 perils are.  As is true with the HO2, the HO3 makes available money to provide for extra expenses that you experience while your home is being repaired or rebuilt. (Loss of use coverage) Personal liability coverage and medical payments are available as well.

HO4– This homeowner’s insurance policy form is intended for those who rent apartments or homes. Your personal property or contents are typically insured against 16 different perils.  Because the tenant does not own the apartment or home, it is not possible to cover the dwelling itself.  Some insurance companies might allow building additions and alteration coverage for any upgrades paid by the tenant to improve their apartment or home. Liability and medical payments coverage are available as well. The HO4 can also provide for extra expenses that the tenant experiences if they are displaced because of a loss to their apartment or home they are renting. (Loss of use coverage) An endorsement called the HO15 may be added to the renter’s insurance policy in Cincinnati which provides all risk coverage on the contents, minus the exclusions.

HO5– This is the most comprehensive homeowner’s insurance policy in Cincinnati. This policy covers everything that the HO3 does but with one major addition.  It covers personal property or contents coverage on an “all risk” basis.  The HO3 only covers personal contents based on the 16 covered perils. This is a significant enhancement in coverage compared to the HO3.  Only the exclusions listed in the policy would not be covered. There could literally be hundreds of different scenarios in which coverage would be denied under the HO3, but would be covered by the HO5.  This is the best homeowner’s policy form.

HO6- This homeowner’s policy form was developed for condominium and Landominium owners.  It is very similar to a renter’s insurance policy because the primary coverage is on personal contents or personal property coverage. Name perils coverage applies. (An endorsement called the HO15 may be added to the condominium policy which provides all risk coverage on the contents, minus the exclusions.) Condominium owners may be unaware of a potential exposure or gap in coverage offered by the condominium association’s master insurance policy.  The condominium association’s master insurance policy may not provide coverage to rebuild the inside of the condominium, or if it does it may only provide builders grade coverage. So in other words if you paid $40,000 extra for upgrades to your condominium and your condominium is destroyed, you will need to pay $40,000 out of pocket to put those upgrades back into your condominium unless you purchased improvements and betterments on your individual condominium insurance policy.  In addition loss assessment coverage can be purchased under the HO6 insurance policy. The HO6 policy provides Liability and medical payments coverage in addition to loss of use coverage.

HO8- This homeowner’s insurance policy form is very infrequently sold by insurance companies.  It was developed for older homes where the replacement cost far exceeds the market value of the home. Instead of rebuilding or repairing the home using like kind of building material. (Plaster walls versus drywall) it would only pay for the most common modern building materials. (Drywall versus plaster walls.)  Coverage is provided only on a name perils basis with some limitations to the name perils coverage that is typical in the HO3.  For instance the HO8 does not cover weight of ice snow or sleet, or sudden and accidental tearing apart of a heating system or appliance. We do not recommend that you purchase the HO8 unless you have no other alternative.

Call Us When You Need Home Insurance in Cincinnati!

Most insurance agents only offer a price and they give no advice. ™  We believe insurance education is more important. Contact our homeowner’s insurance experts today for your insurance needs.

Pathway Insurance -513-662-7000

Need Car, Home, Life, or Business insurance in Cincinnati?  

Call our Cincinnati insurance agency at 513-662-7000 or click here to receive online insurance quotes in all 50 states.

What is the The Pathway Protection Letter?™ – How Does It Benefit You?

The Pathway Protection Letter contains specific coverage scenarios that describe situations that Cincinnati insurance policyholders may find themselves in that could result in a claim denial. Many individuals that buy insurance only have a vague understanding of what insurance covers, and what it does not cover.

Compounding this problem, many agents only quote a price, and they give no advice on insurance.™

Because of this dilemma, a number of years ago we developed the Pathway Protection Letter for our policyholders.

The Pathway Protection Letter™ Benefits Our Clients in Three Different Ways:

• Our easy to understand bi-weekly newsletter explains reasons why insurance companies may deny claims based on common scenarios policyholders may find themselves in.
• It shows you exactly where to find that information in your insurance policy.
• Gives you advice on how to avoid the claim denial in the first place.

Because insurance policies are often misunderstood, misinterpreted, misapplied and then a claim might potentially be denied. ™ It’s absolutely imperative that policyholders understand their insurance plans more completely.  

The Pathway Protection Letter™ contains information from a book that will be released at some point in the future by the owner of Pathway Insurance.  As an expert within the insurance industry, Jack Thomas has detailed information, expertise, and knowledge never before disclosed to the general public.

Jack has worked in the trenches for more than 23 years.  As a true insider, Jack makes known pertinent information and facts that some insurance companies may not want you to know about. 

This ground breaking information contained within The Pathway Protection Letter™ along with his revolutionary new book will forever change the way you buy insurance.

Not having an accurate understanding about insurance is like walking through a minefield without protective gear. Doesn’t it  make more sense to allow an agency to care for your insurance needs that provides this type of service?

Contact Pathway Insurance today.

Call 513-662-7000.