Reinsurance Jobs - The Basics of the Insurance Industry
If you are financially minded but unfamiliar with what a reinsurance job might entail we’ve compiled four reasons why companies carry out reinsurance and the two main different types of reinsurance.
Four Reasons for Reinsurance
Risk Transfer – you only have to look at the amount of money an insurance company would have to pay out if your house was damaged in a natural disaster to realise how there is the potential for them to have huge costs. By reinsuring themselves with other insurers they are able to spread the risk so that no matter how many of their policy are claimed upon they have the ability to pay out.
Income Balancing – for any large company its important they can predict their income for cash flow and often shareholder benefits. As you can imagine this would be difficult for insurance companies if they weren’t reinsuring. A number of big payouts if they weren’t reinsured could have a very significant effect on their bottom line. By reinsuring they are able to manage this risk more effectively.
mproved Surplus – on the balance sheet of a company it’s good to have a surplus. This is the sum of assets minus liabilities. Successful reinsurance can reduce the liability pushing up the surplus level upwards. It is desirable as it makes the company more financial stable and more attractive to potential investors.
Arbitrage – another reason reinsurance is often popular is due to arbitrage. If you are not familiar with arbitrage in simple terms it is where you sell something at a high cost which you then buy at a low cost. In reinsurance this would be where a company sells you insurance at one price yet is able to insure that same risk at a lower cost from another supplier. This is of course hugely appealing to insurance companies and fuels some of reinsurance popularity.
Two Types of Reinsurance
Proportional – this type of reinsurance is often known as quote share insurance. If companies are entering into a proportional reinsurance arrangement they divide the risk up as a percentage. Assuming insurance company alpha reinsures 50% of my house insurance with insurance company beta, if I then make a claim both companies would pay their percentages of the settlement. The agreement doesn’t have to be with just two companies, it is possible for several companies all insuring the same risk sometimes with different percentages.
Non-Proportional – this system works in slightly different way. Assuming I felt on any policy I could only pay out a £1000 but there is a likely hood that the risk could require more coverage I could get reinsurance for £9k. If this even then does take place and costs £5 thousand I can then recover £4k from the reinsurance company.
A Financial Analysis of Reinsurance Group of America Inc
The life insurance industry is one filled with a variety of large, middle, and small capitalization companies. Specifically focusing on the mid-cap equities, four 3-5 billion dollar corporations stand out. Three of these companies, Protective Life, Torchmark, and American National Insurance all have solid fundamentals and business strategies to help investors make money. However, the other stock, Reinsurance Group of America (RGA), has superior fundamentals to the aforementioned equities and should be a part of any investor’s diversified portfolio.
Narrowing the business strategy a bit further, Reuters claims that Reinsurance, an insurance company, is “primarily engaged in traditional individual life, asset-intensive, critical illness and financial reinsurance.” Having a global presence in the United States, Canada, Europe, South Africa, and East Asia, there is tremendous potential for further growth. With life insurance, growth can come from many different areas. Each of these nations has their respective health problems. In Asia, where Reinsurance claims nearly 16% of net premiums, smoking is highly prominent. Since tobacco is highly addictive, and most of the smokers that do continue this practice are usually aware of the potential dangers of its use, they may be more willing to purchase an insurance plan such as the one Reinsurance issues. In other areas like the United States and Canada, which together accounts for 70% of Reinsurance’s net premiums, obesity is a high problem. Just like smoking is addictive to the natives of Pacific Asia, fast food is the complement to many areas in North America. As a result these individuals usually will understand the threats associated with their habits and take precautions such as purchasing a life insurance plan. And as more individuals continues these practices into the future, there will be more demand for Reinsurance, which means higher sales numbers, higher EPS figures, and positive sentiment, leading to a higher share price.
Reading these past few sentences, many investors may find that all the companies in this industry have similar goals. This observation is true, but does not extend into the fundamental side of things—an area where Reinsurance is really prospering. Looking over the past year revenue numbers, Reinsurance has had more revenue come in at 5.35 billion dollars, according to Capital IQ, which is more than the other three competitors. Now some investors may argue that over the same time period, according to Reuters, operating margins (8.65%) and net profit margins (5.60) are quite below the industry respective averages at 15.49% and 11.00%, not to mention all three other companies. Nevertheless it is important to understand the facts behind these numbers. Comparing both operating and net profit margins last year to the five year average (8.47% and 5.47% respectively), there is clear indication that Reinsurance is growing every year. This is a statement that cannot be said of some of Reinsurance’s competitors like Protective Life which saw lower figures last year compared to its five year average. However, the most important statistic regarding sales figures is the five year growth rate. Reinsurance has seen revenue over this time period increase by 21.42%–over four times the industry average at 5.21%. In fact, the next highest percentage increase when compared to the three other rivals was Protective Life at 10.73%. Such great potential should continue to increase given the business plan mentioned earlier, and high sales figures should be a strong complement to higher earnings.
While some investors may feel optimistic about such high growth potential, these same individuals may feel reluctant about EPS growth. Fortunately, statistics from Reuters show that this company has seen 42.21% growth in this area for five years. While the number is a bit below industry average, it is still quite high compared to similar mid-cap rivals, as only American National Insurance at a rate of 33.16% can even compare to Reinsurance’s figure. If this figure can be sustained for the next couple of years, much of this success will translate to a higher share price.
Already sitting at a forward P/E ratio at 11.16 which is below the 13.34 multiple of the industry, some investors may claim that Reinsurance is not only a growing quite nicely but is undervalued given these aforementioned statistics. And looking at evidence to support this claim, there may be some truth to this argument. It is true that all three rivals mentioned are hovering about the 10-12 earnings multiple, but other ratios show that Reinsurance has much more potential for a high share price, even if it is near a 52-week high. If estimates are close to correct, analyst propose that Reinsurance will see over $5.75 billion in revenue in fiscal year 2007. If this figure is accurate, this would mean an enterprise value to revenue of 0.92 and a price to sales figure of 0.63—both numbers below trailing twelve month figures. Comparing this figure to Protective Life’s 1.17 same-time price to sales statistic or Torchmark’s 1.95 respective figure (which is actually higher than the trailing twelve month average), there is strong evidence to support that the share price for Reinsurance has the potential to further grow. The PEG ratio (five-year growth rate) at 1.12 is below most other competitors, and the trailing twelve month enterprise value to EBITDA at 3.76 is nearly half of all three aforementioned companies. Now, as the company is trading at a range of 60-65, now would be an excellent time to purchase shares of this company, given the undervalued status it seems to have.
Nevertheless, amid all these great numbers, there may be some speculation regarding some of the management ratios. Although, even the great fundamental numbers provided earlier from CEO Greig Woodring and his 978 employees, there still may be some questions about a trailing ROE figure of 11.15%–a number below the industry average at 12.72%. While it would be nice to have a higher number reflecting how management uses shareholder’s money, looking at competitors, such as American National which only has a 7.86% ROE, there should not be tremendous concern for a near average number. What Reinsurance should be excited about, however, is a price to book ratio of 1.32 in its most recent quarter which is below industry average and quite important for financial stocks. In addition, it is great to see that Reinsurance has both leveraged and free cash flow in the positive range, which cannot be said about some of its rivals like Protective Life. Overall, while the company does not have perfect fundamental figures, its statistics do illustrate that it is a great purchase for any investor portfolio.
While Reinsurance is trading near its 52-week high, there are still plenty of reasons why it is undervalued. The aforementioned earnings and sales statistics are a good starting point, and looking at the business goal and plan compared to other rivals, is another way to reach this assertion. Except for one cycle, Reinsurance has not had a negative two year range, and should continue to sustain this pace, barring any major economic bullet. The equity also has a dividend yield of 0.59 which is great for any investor. Given all these excellent numbers and information about Reinsurance, there should be no reason for any investor to avoid this company and potentially fail to have this great portfolio asset.
Reinsurance
When the unexpected happens such as the September 11 tragedy of the twin towers, insurance companies are overwhelmed by claims which they have no way of paying and are thus forced into bankruptcy! This is where reinsurance comes in handy; the insurance company will insure itself against such extraordinary situations, which they may not be able to handle. But the extent of the tragedy was such that many small reinsurance agencies were forced into bankruptcy! State or federal governments have to create programs to assume responsibility for the bulk of these claims.
Basics of Reinsurance:
Reinsurance refers to the way one insurance company agrees, for a certain premium paid, to take responsibility and reimburse another insurer against all or part of the losses. The company seeking insurance is termed as the ceding insurer and the one offering a cover is called a reinsure. This arrangement makes sure that no insurance entity faces a financial burden that it has no means to repay. Reinsurance can be purchased for the life or for a particular period such as for a year etc.
Insurance companies in general go for aggregate stop-loss reinsurance or excess-of-loss reinsurance. When the aggregate losses for a group are well above some expected level, the insurance carrier would not have set a premium high enough to cover the losses. That is when aggregate stop-loss reinsurance is useful for them. Companies that have a self-insurance health plan as well as insurance companies use excess-of-loss reinsurance when the expenses of an individual exceeded certain set limits.
Before companies go for reinsurance they have to carefully analyze if they need reinsurance, what type of reinsurance is appropriate for them, the level of reinsurance needed, and who to get it from. They need reinsurance in case of natural calamities such as tsunamis, floods, tornado, hurricanes, fire, earthquake, or man made tragedy like September 11 strike of the twin towers. They may use it to even out claim patterns as they may peak unexpectedly at times. It also helps insurance companies absorb higher losses as well as issue more policies. Ceding companies may assume greater risk than is possible considering their size, offering policyholders larger limits of coverage than possible with its own capital. Risk transfer is the main reason why several insurance companies opt for reinsurance.
Reinsurance reduces the capital needed to provide coverage, helps increase surplus as it reduces the amount of net liability. Insurance companies function better, knowing that they are covered, in case the unthinkable happens and the companies face a multitude of claims at the same time. Since the September 11 tragedy reinsurance has assumed a greater significance as also reinsurance companies are seeking ways to protect themselves from facing bankruptcy as many reinsurance firms did due to the tragedy.
Types Of Reinsurance Policies
When an insurance company insures itself it is called as reinsurance, where by it shares the risk of loss with another company. Insurance companies need reinsurance, when they face the danger of having to pay a multitude of claims at the same time and hence have no option but to face bankruptcy, where as if they have reinsured they are protected to a certain extent. Event like the September 11 attack of the twin towers have caused the closure of several small reinsurance agencies, hence the significance of reinsurance for an insurance company is tremendous.
Types of Reinsurance:
There are two kinds of reinsurances, treaty reinsurance and facultative reinsurance. Treaty Reinsurance: This kind of reinsurance requires that the reinsurer will assume part or all of a ceding company’s responsibility for certain sections or classes of business in accordance with the terms of the policy. It is an obligatory contract as the ceding company has to cede the business and the reinsurer is obliged to assume the business as per the treaty. It is the preferred type of reinsurance when groups of homogenous risks are considered.
Facultative Reinsurance: This kind of reinsurance is used while considering a particular underlying risk of an individual contract. It is the reinsurance of all or part of a single policy after the terms and conditions have been negotiated. It reduces the ceding company’s exposure to risk from an individual policy. It is non- obligatory.
In another way, reinsurance is classified as proportional and non-proportional reinsurances. Proportional Reinsurances: The two companies share the premium as well as risk. The reinsurer usually pays a ceding commission.
Pro-Rata Reinsurance: It is a classification based on the way the two companies share the risk. The cedent and the reinsurer share a pre decided percentage of the premium and losses. It is used widely as it provides surplus protection. There are two types of pro-rata reinsurance, quota share and surplus share.
Quota Share Pro-Rata Reinsurance: The primary insurer cedes a fixed percentage of premiums and loses for every risk accepted.
Surplus Share Pro-Rata Reinsurance: It is different in that not every risk is ceded but only those that exceed certain predetermined amounts.
Non-Proportional Reinsurance: As the name suggests it is not proportional and the reinsurer only responds if the loss suffered by the insurer exceeds a certain amount.
Excess of Loss: It covers a single risk or a certain type of business. Catastrophe reinsurance is a type of excess of loss reinsurance. It provides the captive with a great deal of flexibility. Stop Loss Reinsurance: It covers the whole account and is also known as excessive loss ratio reinsurance.
The Council of Insurance Agents and Brokers
Businesses are not buying terrorism coverage because it is too expensive and they do not consider themselves targets of terrorism, according to a new insurance survey conducted by The Council of Insurance Agents and Brokers. Nearly 60 percent of brokers said less than 10 percent of their small commercial property/casualty accounts and fewer than 20 percent of medium-sized accounts have purchased terrorism insurance.
Of the brokers handling large accounts, 48 percent said fewer than one in five large customers have bought terrorism coverage.
Consumer group, independent insurance agents form alliance
As a key lawmaker molds legislation to let banks, brokerages and insurers get into each other’s businesses, a consumer group and independent insurance agents have forged an unusual alliance to demand consumer protection.
The push for a banking overhaul bill entered a crucial phase Monday as Rep. Jim Leach, R-Iowa, chairman of the House Banking Committee, began to decide on the shape of the measure to end Depression-era restrictions. The bill incorporates a Clinton administration proposal.
Some lawmakers are concerned that legislative prospects could be dimming for what would be the most significant rewriting of the nation’s financial laws in 60 years. But the Consumers Union and the Independent Insurance Agents of America — whose members compete with banks — are concerned that changes would be made and consumers wouldn’t be properly educated. The groups released a survey showing that people are confused about whether insurance sold by banks is federally guaranteed. “Consumers are easy prey for misleading and predatory practices by banks,” said Mary Griffin, an attorney for Consumers Union, which publishes Consumer Reports magazine. “Until consumer protections dealing with bank sales activities are enacted, Congress should not give banks more powers in the area of insurance and investments.” Griffin was joined at a news conference by Robert Rusbuldt, vice president for federal affairs of the Independent Insurance Agents. Rusbuldt called the administration’s proposal “a disaster for consumers … would leave the buyer bewildered.” Rusbuldt said, however, he did not believe the groups’ opposition was enough “to take down the bill.” Paul Elliott, a spokesman for Treasury Secretary Robert Rubin — the administration’s point man on the proposal — said Rubin and his staff needed more time to review the issues raised by the two groups. The major insurance companies have not taken a position on the consumer protection issue. Patricia Cinelli, a spokeswoman for the American Bankers Association, had no comment on the matter. The group’s chief lobbyist was quoted as saying last week that the industry’s fervor for the overhaul legislation has waned because regulators already have been allowing banks to get into other financial businesses. The lobbyist, Edward Yingling, later said that was a “misleading impression” of his group’s position. Griffin and Rusbuldt released a survey of 1,000 people nationwide, commissioned by the insurance agents’ group, showing that: * Consumers are confused about whether insurance, mutual funds, annuities and other financial products sold by banks are backed by the federal government, as deposits are. Only 27 percent of those surveyed knew that such products are not federally guaranteed. Rubin has said the administration’s proposal includes a requirement that consumers be told in plain terms whether or not financial products are federally insured. * Consumers are vulnerable to pressure to buy insurance, notably credit life insurance, when they apply for loans. Of the respondents, 58.5 percent said they believed that buying insurance from a bank would very likely or somewhat likely improve their chances of getting a loan approved by that bank. * Fifty-five percent of respondents said they were very concerned or somewhat concerned about banks violating the privacy of the personal financial information they provide. The two groups said they were seeking consumer protections in the bill such as anti-coercion rules to prevent banks from using their role as lenders to force consumers to buy their financial products. They also include privacy protections and disclosure and advertising safeguards to inform consumers when financial products are not federally guaranteed. David Runkel, a spokesman for the House Banking Committee, said, “There will be some consumer protections” in the measure that Leach will put forward for a drafting session by lawmakers next week. The survey, conducted by International Communications Research of Media, Pa., was based on telephone interviews last month of 500 men and 500 women aged 18 and older, at a variety of income levels. The margin of error was plus or minus 3 percentage points.
INDEPENDENT INSURERS SHOULD POOL FUNDS TO PROMOTE AGENTS
A growing list of independent companies has adopted a direct auto marketing strategy. I completely understand their need to aggressively explore and introduce business models to capture, or in some cases recapture, the market share being cannibalized by captive and direct writers. However, I must confess that what does surprise me is the approach independent companies are taking to compete in the market place.
The argument that most carriers give to explain their recent shift away from independent agents is that they are focusing only on those consumers wishing to purchase auto insurance via the Internet. What they aren’t mentioning here is price. Perhaps it is because they have argued for years that agents should not sell insurance based on price. I agree. Agents have too long sold on price. Perhaps now it’s come home to haunt them.
But price is a factor for the consumer they are trying to reach via the Internet. What we hear from insurance company advertising, some of which feature talking reptiles, is one constant statement: “We can save you between 10% and 15% on your auto insurance.” It doesn’t take an Einstein to figure out the source of that 10% to 15% in savings is what the independent insurance agent earns as a commission.
I would be very interested to know if an actual study has ever been conducted to determine whether a direct sales program, via a multiple lines independent company, is more profitable than the apparent loss of revenue realized when removing an agent with the ability to cross-sell additional coverages.
If the goal of direct programs truly is to go after the auto-only customer, we must conclude one of two things. The company is trying to create a nonstandard book of business or is in the process of building a stand-alone auto company.
But that’s probably not what’s really happening. A true multi-line independent company adopting a direct writing program is doing so to broaden its direct model. This is to compete with other multi-line, non-direct independent or captive companies using agents to sell and service their product. Does this new direct program then become the conduit for the “independent” carrier to cross-sell its other personal lines products without the use of the agent?
Several PIA Western Alliance member agents recently conducted a very informal comparative quote campaign. They wanted to acquire a sense of actual price differential. When they gave me their results, I did my own comparisons. Three of the most popular direct and captive companies could not compete with my current auto premium. Please note that I did ask for PIP, UIM and higher limits, as my real auto insurance exposures relative to my assets need to be properly considered and underwritten. This is a service apparently not offered over the phone by captive or direct writers and the omission flows into my next point-risk analysis.
I told the companies about my family vehicles. I drive a 2001 Ford F-350, my wife has a 2003 Chevy Suburban and my son drives a 1996 VW Passat. At no time was I asked about related exposures such as:
Do I pull a boat? Do I have a camper? Do I own a home? Do I own a business?
Since the salespersons did not ask those questions, they were not in the position to recommend higher limits or an umbrella, etc. The level of identifying my actual insurance needs was limited to providing me with a “competitive” auto quote. The only underwriting advice I received was when I informed them their price was higher than my current policy. They recommended that I purchase a higher deductible thus lowering my annual premium.
If my insurance needs were greater than they could provide, then they should have told me that I needed to use an agent or a company that offers multiple coverages. The salespersons were not concerned at all about my entire risk portfolio, and that leads me back to cross-selling.
Consumers benefit when independent agents ask questions that those direct writers should have asked about my vehicles, businesses and so on. Their exposure is less when dealing face to face with agents who know and understand why it is important for their clients to purchase additional coverages.
Geico, the fourth largest auto writer in the nation, is a direct writer. The head of that company recently stated that they spent $502 million on advertising last year and that he can’t wait to spend more.
Is our industry-at the carrier level-so small that we cannot collectively raise the money for a national advertising campaign to counter the effects of the talking reptile? It would not be difficult for the members of the American Insurance Association (AIA), the Property Casualty Insurers Association of America (PCI) and others, to create and put forth a collective media campaign designed to promote the independent agency system and educate the insurance-buying public about the hidden cost of the low price. We need to find a way to show consumers that a trained and licensed professional agent evaluating their insurance needs and exposure is worth the 10% to 15% they might seem to save on insurance.
The money that independent agency companies might spend on a national program aimed at educating and persuading consumers to contact an independent agent when shopping for their insurance would be less than the millions they might spend on the development of a direct program. I would add, however, that in order for such a campaign to be truly successful it should not use any major independent agent trade association logos. There are many other ways to assist the consumer in identifying and using the independent agent.
As independent insurance agents-and as part of the system that made these companies very successful-we need to make this type of demand on our companies.
When you consider the high cost of being underinsured, that should be an easy sell.
It’s easy to imagine the campaign. A warm nurturing voice says something like, “Yes, with a direct writer you might be able to save some money on your insurance. But why risk having your own risks not properly evaluated? When it conies to protecting your assets, the best person to talk to is not a telephone sales clerk-it’s an independent, professional insurance agent who is trained and knowledgeable in one of the most important decisions you’ll make relative to protecting your assets. They are the agents who offer more choices. You will know them by all the independent company names on their door.” And so on.
This is just one way to fight back. There must be others. We must do something. To remain inactive means we all lose: the company, the agent and, most of all, the consumer.
How to Get Low Cost Homeowners Insurance in Vermont
Homeowners insurance covers your home against damage from fire, vandalism, theft, and Vermont storms and winters. Without it, you risk losing everything you own. Here’s how to get low cost Vermont homeowners insurance.
What Homeowners Insurance Covers
Homeowners insurance covers:
Your home - Homeowners insurance will pay to repair or rebuild you home after its been damaged or destroyed by a fire, by a plumbing leak, by vandalism, or by snow or storm damage. Standard policies do not cover flooding, but you can get it from the Federal Insurance Administration (fema.gov).
To estimate the amount of home coverage you need, multiply the square footage of your home by local building costs per square foot. You can get the local building costs in your area from an insurance agent, a real estate agent, or a builder.
There are two types of homeowners coverage - 1. Actual cash value coverage, which pays to replace your home or personal possessions minus a deduction for depreciation, and 2. Replacement cost coverage, which pays the actual cost of replacing your home or personal possessions.
Your possessions - Homeowners insurance will pay to replace your personal possessions after they’ve been stolen, or damaged. Standard policies provide personal property coverage equal to 50% to 70% of your home insurance coverage. To determine if this is enough coverage, add up the value of all your possessions. If you need more coverage you can purchase it from your insurance company.
Standard policies limit the amount of coverage on expensive items like jewelry, furs, and computers. Check your policy to see what the limit is and purchase more coverage if you need to.
Additional living expenses - Homeowners insurance will reimburse you for your living expenses - hotel, motel, and restaurant bills - when your home is being repaired due to a fire, a plumbing leak, vandalism, or by snow or storm damage. Standard policies provide additional living expense coverage equal to 20% of your home insurance coverage. If you feel you need more you can purchase additional coverage.
Personal liability - Homeowners insurance will pay your legal fees and court costs when you’re found liable for injuring someone or damaging their property. Standard policies provide $100,000 worth of liability coverage, but you can purchase more coverage if you feel you need it.
Homeowners Insurance
Homeowner’s insurance is a type of insurance policy that combines many different types of protection applied to your home. The types of protection built into these policies include losses occurring to your home and its contents, loss of use, loss of other personal possessions of the home owner, cost of additional living expenses such as hotel costs, as well as liability insurance for accidents that may happen in the home.
Costs
The cost of obtaining homeowner’s insurance depends on what it would cost to replace the house, as well as other items that are insured. The payment from the insured person to the insurer is called a premium. If you are the one purchasing insurance, you must pay the premium to the insurance company according to the type of payment schedule in your contract.
When calculating the amount of premium you must pay, the insurers take into consideration the likelihood of potential major damage or costs. Most insurers generally charge a lower premium if it appears that the insured property is less likely to be destroyed or damaged. For example, if your house is situated next to a fire station or is equipped with a sprinkler system and fire alarms, your premium will likely be lower than houses without those products and houses located far away from fire stations.
Required insurance for homeowners
Most home buyers borrow the cost to purchase their home in the form of a mortgage. In most cases, the mortgage lender requires the buyer to purchase homeowner’s insurance as a condition of the loan in order to protect the bank if the home were to be destroyed. Anyone with an interest in the property should be listed on the insurance policy in order to protect his interest in it. If not, his assets will not be covered in case of damage or loss.
How to Get Inexpensive Homeowners Insurance in Oklahoma
Contrary to what you may think, inexpensive homeowners insurance in Oklahoma is not a thing of the past. You can still get an inexpensive rate if you know how. Here’s a brief rundown on how to do it.
What Homeowners Insurance Covers
Homeowners insurance does more than just protect your home, it also protects your personal possessions, and protects you from liability lawsuits. Here’s what it covers:
Your home - Homeowners insurance will pay to repair or rebuild your home after it’s been damaged by fire, smoke, vandalism, or acts of nature. It does not pay for damages caused by flooding or earthquakes, so if you live in an earthquake or flood zone you should consider purchasing additional coverage for these perils.
Your possessions - It will pay to replace personal possessions like furniture, appliances, clothing, TVs, stereos, tools and sporting goods. There are payout limits on expensive items for jewelry and computers, but you can purchase additional coverage for these items if you need to.
Your assets - It will pay your legal fees, your court costs, and any damages awarded to anyone who sues you for bodily injury or property damage. Standard policies provide a minimum of $100,000 worth of liability coverage, but if you have a lot of assets you need to protect you can purchase more.
Off premises living expenses - In the event your home needs repairs from damages caused by fire, smoke, vandalism, or storms, homeowners insurance will pay for your hotel, motel, and restaurant bill plus any other additional living expenses you incur.
Where to Get Inexpensive Insurance
Getting inexpensive homeowners insurance in Oklahoma is a matter of getting rate quotes from a number of companies, comparing those quotes, and choosing the cheapest one.
Thanks to the Internet, what used to take half a day or more can now be done in a matter of minutes at an insurance comparison website. All you do is fill out a simple onine questionnaire with your insurance information and the amount of coverage you want, submit the questionnaire, and wait for your quotes.
The best comparison sites even offer a chat service that allows you to get answers to you all your questions from an insurance expert.
How to Lower Your Rate Even Further
The first step in lowering your rate is to raise your deductible, the amount you pay toward a claim before your insurer will pay. For example, raising it from $500 to $1,000 will save you 15% to 25% on your premium. Just make sure you can afford to pay the higher deductible should you need to.