“How to Insure Your HomeProperly, For The Lowest

Possible Price”

A Consumer Awareness Guide for Currentand Future Homeowners

By: RJ Weiss, CERTIFIED FINANCIAL PLANNER®

Provided as an educational service by:

Weiss Insurance Agencies, INCSpecialist in Homeowners InsuranceR.J. Weiss, CFP® & Personal Lines Customer Specialist(630)584­1717

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Dear Homeowner,

Properly insuring your home, for the lowest possible price isn’t easy.

Why? Because you’re bombarded with misleading advertising, confusing claims, and simply badadvice.

From super­low premiums, that sound to good to be true, and high pressure sales ­­ tounqualified agents with little to no experience. How do you find an honest, competent, andprofessional insurance agent to help you insure your home?

You start by reading this Consumer’s Guide. In this fact filled document, you’ll discover:

Five costly misconceptions about homeowners insurance Four recommendations for quoting your homeowners insurance Six questions you should ask your insurance agent or company before letting them

protect, what probably is your largest asset

Fairly important information to know, right?

Based on the feedback I’ve gotten from members of the affluent onthis free report, I know that if you simply take 5 minutes to skimthis free report, you’ll find at least one way to save money or onemajor coverage gap in your current insurance package.

I wrote this guide to help you better understand homeowners insurance. Now, with thisinformation, you can make an informed, intelligent decision.

And if you have any questions about homeowners insurance, you’re invited to call (630)584­1717and ask to speak to one of our specialist in homeowners insurance. We’ve dedicated to ourbusiness to educating consumers. We’ll be happy to help you in every way.

Cordially,

R.J. WeissWeiss Insurance Agencies

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The Five Costly Misconceptions About Homeowners Insurance

Misconception # 1: Everything in your home is covered under a homeowners insurance policy

Unfortunately, no. Not all possessions in your home are covered under a standard homeownersinsurance policy.

In homeowners insurance, certain items, such as jewelry, furs, fine arts, or collections, need tobe scheduled on your policy. If they're not scheduled, they may not covered.

This is why it’s so important to work with a knowledgeable insurance agent. Someone withexperience who knows the right questions to ask.

Misconception # 2: All insurance agents are equal

Hopefully you haven’t found this out the hard way, but this isn’t true. Let’s first discuss the twoprimary types of insurance agents and soon will get into experience and knowledge.

First, there are Independent agents. Independent agents represent you, the policyholder.Independent agents have contracts with many different insurance carriers, where they can placeyour business.

Another benefit of independent agents is at the time of a loss, an independent agent representsyou, not the insurance carrier.

The second type of insurance agent is known as a captive agent. Captive agents represent oneinsurance carrier only. By contract, they are limited to one carrier and the coverages that carrierprovides.

As a homeowner, your goal is to work with an agent who offers you the best combination ofservice, coverage, and service, right? Since independent agents are not bound to the coverageoptions of one company, they offer you an advantage over a captive agent.

Misconception # 3: All independent insurance agents are equal

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Some independent agents are the equivalent of an online quoting engine. They take yourinformation, run it through a computer, than give you the lowest price. These independent agentsask very few questions, which could be because they don't have the experience to know whatquestions to ask. They may offer you a low price, but there’s no guarantee you’re properlycovered.

I’m going to let you in on a little secret, it doesn’t take much effort to get an insurance license. InIllinois, it’s a two day class, followed by a one day test.

My point is, just because someone is licensed to sell you insurance, doesn’t mean they have theknowledge to properly insure you. The insurance agents you want to work with, are the ones whoplace a premium on knowledge.

Furthermore, not all independent agents and agencies, are contracted with multiple insurancecompanies. You need to have a contract to write business with an insurance carrier. Just asyour home is looked at as a risk by an insurance carrier, so are insurance agencies. For aninsurance carrier to work with an insurance agency, they have to have trust in the agency.Therefore, one way to tell if an agency has good business practices, is to see how long theirrelationships have lasted with different insurance carriers. The longer those relationships havelasted, the better.

Misconception # 4: The company who offers the lowest price is the company you should hire.

Maybe ­­ but not always. Here are three important points to consider.

Point # 1: Is the price you’re quoted fully underwritten? Before selecting an insurance companymake sure the price you’re seeing is fully underwritten. Meaning, the price you see, is what youpay.

Many times, a company or agent will provide you with a low priced quote to get your business.What they won’t tell you is the price is subject to underwriting and can change.

Point # 2: The carrier with the lowest price may be doing so because they offer the lowestcoverage.

It’s important to understand how the replacement cost on your home is calculated. Remember,when deciding how much to insure your home for, the amount you bought it for has no relevanceas to how much it costs to replace.

A recent survey by the insurance services firm MSB (article on MSN Money by Liz Weston),reported more than two­thirds of homeowners are underinsured by an average of 18%.

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When deciding on the amount to insure your home, you need to account for current cost ofmaterials and labor. Not market value, which I believe is the reason two­thirds of homeownersare underinsured.

Suze Orman, one of the nation's top personal finance experts, writes in an article about HomeInsurance:

What you need to insure is not the current value of your home, but the cost to rebuild if itwere destroyed. And given the sharp rise in building costs, you could be looking at a widedifference between the two. Let’s say your policy is for $300,000, which is what you paidfor the home a few years ago. But with rising home values and rising building costs youwould be looking at a $450,000 tab if you needed to completely replace the house. Yourinsurer isn’t going to fork over the $450,000. In fact, you’ll be lucky to get 125 percent ofthe insured value, or $375,000 in this example.

So you need to work with your insurer to make sure you have adequate replacementcost coverage tied to rebuilding costs. Also, look for a policy that has an automaticinflation adjustment, so your coverage will increase each year to reflect rising home andhomebuilding costs.

Luckily, good insurance agents, which I will show you how to find in just a moment, will perform areplacement cost calculation on your home.

In addition and pay close attention here because this is important, know if your home isinsured for actual cash value or replacement cost.

Actual cash value is defined as, “The cost to replace with new property of like kind and quality,less depreciation” Therefore, if your roof was damaged in a hail storm and was 15 years old, anactual cash value policy would deduct the 15 years of wear on the roof from yourreimbursement.

In contrast to actual cash value, there is replacement cost. If your home is insured forreplacement cost, the insurance carrier will reimburse you for the current cost of replacing theasset with a new one of equal effectiveness.

Award winning personal finance columnist Liz Weston writes:

“Get "replacement cost, not actual cash value. It's not just rebuilding coverage thatfalls short. Many policies severely restrict how much money you'd get to replace yourstuff and limit or even exclude some common household items from your policy. If youhave a policy that pays out actual cash value on your home's contents, for example,

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you'd get a check for what your possessions were worth when they were destroyed, notwhat they would cost to replace.”

This is a HUGE difference. If an insurance company offers replacement cost coverage, whichthe good ones do, I highly recommend most homeowners take it.

Point # 3: Know the financial strength of the insurance company who provided you the quote.Insurance companies with low financial strength may offer the lowest price because they needthe money now. However, when it comes time to pay a claim, they may be more stringent onwhat they pay than an A rated carrier.

As in all businesses and professions, the insurance industry has its share of bad apples. I takeno pleasure in telling you this, but there are some very unethical practices in my opinion.

Then you’ll find other insurance agents ­­ professionals like those at Weiss Insurance Agencieswho work hard to earn your trust and respect.

As a way of improving this profession, I’ve dedicated part of Weiss Insurance to educating thepublic. The only way you can make an intelligent decision is to have all the facts you need. Thisis why I’ve written this message. And I decided to become a CERTIFIED FINANCIALPLANNER® and Personal Lines Customer Specialist..

Misconception # 5: The best time to search for a new policy is at renewal

With most insurance policies, at any time during your policy period; you can cancel yourinsurance and receive a prorated share of your money back. This is great news if you believeyou may not be insured properly today or you think you are paying too much right now.

Four Recommendations For Quoting Your Homeowners Insurance

If you’re looking to quote your home insurance out either due to lack of coverage, bad service, ora recent price increase; I offer these four recommendations.

Recommendation #1: Make a commitment to yourself to find a professional. Someone withexperience and a good reputation. Most importantly, someone who has your best interests inmind.

Again, when insuring your home, you’re protecting one of your largest assets. By not workingwith a professional, you’re risking a large decrease in net worth through improper protection.

I’ll give you tips on how to find an agent with these qualities in just a moment.

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Recommendation #2: List your objectives. Do you want only the lowest limits, something youcan get by searching Google for home insurance quotes? Or, do you want to work with aprofessional who can help you decide what limits are right for you? Do you want to work withsomeone who represents you at the time of loss ­­ or are you willing to risk working with a carrierwho offers you the lowest price but not knowing it the carrier will pay your claim?

Recommendation #3: Ask questions. The best way to learn about your insurance agent is toask questions and listen carefully to the answers.

Here are the questions I suggest you ask:

1. What is your experience in the insurance business?2. Which insurance companies do you represent?3. How do you decide what insurance carrier is best for me?4. What is the A.M. Best rating of the insurance carrier you wish to place my business with?5. Is my homeowner’s policy for actual cash value or replacement cost?6. How do you calculate the insured value for my home?

If you’re not satisfied with any of these answers, remember, you’re under no obligation to workwith a particular agent.

Recommendation #4: Once you know you’re working with an honest, competent professional,invite them to quote your home, and any other insurance you may have such as auto, jewelry orumbrella. There’s a good reason for quoting multiple coverages, like auto and home together­­most insurance companies offer you a discount for doing so.

Make sure to provide your agent with the information they ask for and answer their questionsthoroughly. Remember, a quality insurance agent is trying to best protect your assets for thebest price.

By following these four recommendations, you’ll gain all the information you need to make aninformed, intelligent decision. If you want a quick quote for the lowest possible price, go online,do a Google search for home insurance, and enter your personal information into a computer.

Yes, there’s a slight chance you might find a quality insurance agent this way. But say yourhome’s value is 50% of your total net worth. Can you imagine leaving 50% of your net worth up tochance, as many homeowners do?

On the other hand, if you’re looking to work with a professional, to make sure you’re properlyinsured for the best possible price, to protect your net worth, I invite you to contact WeissInsurance.

The professional team at Weiss Insurance will be more than happy to answer your questions

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and provide you with a free quote ­ without any obligation of any kind.

Here’s one last point. To properly insure your largest asset, choosean insurance agent who has a good history and has built its clientbase through referrals. A business built on referrals is built onintegrity, stability, and trust.

At Weiss Insurance, since my Great Grandpa started this businessover 100 years ago, referrals have been responsible for themajority of our growth. To me, there is no higher compliment, thana referral. Especially, when the referral has been passed on insidea family for over three generations.

Thank you very much for reading. I hope you found this consumer message helpful. If you havequestions or comments, or if you’d like to receive a free home insurance quote, call WeissInsurance Agencies at (630)584­1717. Ask our receptionist, to speak to someone who can helpyou quote your home insurance.

Of, if you’d prefer and/or it’s after business hours, just leave your name, number, email address,and the best time to reach you in this contact form and one of our personal lines specialists willget back to you at a time that’s best.

On behalf of Weiss Insurance Agencies ­ I thank you for your kind attention.

All the best,

Raymond (R.J.) WeissWeiss Insurance Agencies

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©2012 Weiss Insurance Agencies, Inc.

ALL RIGHTS ARE RESERVED. No part of this book may be reproduced or transmitted in anyform or by any means, electronic or mechanical, including photocopying, recording or by anyinformational storage or retrieval system without express written permission from the publisher.

Published by:Weiss Insurance Agencies, Inc.31W680 Army Trail Rd.Wayne, IL 60184

DISCLAIMER AND/OR LEGAL NOTICES:

While all attempts have been made to verify information provided in this book, neither theAuthors or the Publisher assumes any responsibility for errors, inaccuracies or omissions. Anyslights of people or organizations are unintentional. If advice concerning legal or related mattersis needed, the services of a qualified professional should be sought. This book is not intendedfor use as a source of legal or accounting advice. Also, some suggestions made in this bookconcerning marketing, product sales, or referral fees, etc., may have inadvertently introducedpractices deemed unlawful in certain states and municipalities. You should be aware of thevarious laws governing business transactions or other business practices in your particulargeographic location.

Any references to any persons or businesses, whether living or dead, existing or defunct, ispurely coincidental.

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