Insurance consumers should be aware that the home insurance market, including condominiums and renters, is changing. Many carriers who once offered standalone, or monoline, homeowner’s policies no longer offer this type of policy. Other carriers who still choose to offer standalone policies generally do so with reduced coverages and higher premiums. In other words, as the insurance market shifts, the need for clients to make the best, informed decisions regarding their personal homeowner’s policies increases.
Why Has the Market Shifted?
With package policies that include home, auto and umbrella coverage, carriers experience fewer losses, less administrative costs, and higher client satisfaction which each lead to noticeably increased client retention. Because companies see decreased cost of claims and increased client retention, they are able to lower their rates for package policies and provide increased benefits for clients.
How Do Consumers Benefit from Package Policies?
Carriers offer their best coverage under package policies. Oftentimes, stand alone policies do not include either the same coverage limits or endorsements.
In addition, most package policies include a “common loss” deductible, allowing clients to pay only a single deductible in the event of a simultaneous loss to multiple items. Hail damage is an example of this: if both a vehicle and a home are damaged, the homeowner is responsible for paying one deductible, not two.
Is Philleo Agency Insurance Able to Write a Stand Alone Homeowner’s Policy?
The answer is yes. Philleo Agency has access to markets that will write a stand alone homeowner’s policy, keeping in mind that this also applies to renter’s, condominium and auto insurance. While carriers strongly encourage and value package policies, some do recognize clients’ individual needs and will provide monoline insurance coverage.