***Working thought, from an idea via a longtime friend***
So the scenario is quite common, friend calls and says they want to have some tree work done on their property. Pretty common. You can also insert, new roof, new furnace, upgrade to electric panel, drainage dug, fire alarm installed, etc. Think of it as any proactive, likely preventive measure that can reduce the likelihood and at worse the severity of a claim.
“Bill, is there an extra discount for cutting down the trees? Will they(the insurance company) pay for it? ” No and No.
Woke up early and was immediately thinking about one of my last conversations yesterday. Let’s start with some math;
If you spend $1000 and in return I lower the cost of something by about $3000 what could you consider your return on investment(roi)? $2000 not bad. Not bad at all.
So in the first year of this new product you saved $2000 by spending $1000. Now in the second year(assuming current numbers stay the same) you actually save $3000 since you do not spend the $1000 again. So you have now made $5000 by investing $1000. 500% return.
This might be the toughest question I have to answer when it comes to insuring a home. Why? Because the reality is that at the time you start a policy, unless you just built the home, you really have no definite way of knowing this number. So here is my take; When in doubt always make sure you feel comfortable. Here are some things to do;
1. As an agent I use any public data I can get my hands on. This is combined with what you tell me then I input it into the company provided home replacement cost estimator. Out comes your homes replacement cost and per company policy you have to have this as your minimum level of coverage.