Street Speculator

Did I get a shock about 2 months ago. I attempted to switch my homeowners insurance provider. When calling around for quotes, all came in $40,000 lower in relation to what I owe and what the local government states the property is worth, or better, what I pay personal property taxes on.

Future Homebuyers: You are in the drivers seat (If you can get funding). Before submitting a bid on a potential property, call a few insurance companies and get homeowners insurance quotes. Submit your bid “lower” than what the insurance company values the property at. But, don’t ever bid over their quoted value amount. Also, don’t let the seller know of the quoted price unless the bidding continues past 2/3 proposals. Let the seller know that your price is FIRM.

SELLERS: Patience is a virtue. Insurance companies are becoming illiquid like the major banks. They are repositioning their balance sheets which  means adjusting their “risk level.” Good for the companies, but bad for consumers.

To those property owners with no intention of selling, go out and get a policy quote as well. Tell the insurance companies that you “may” consider switching. Do this just to see what the “true” value of your home is, what they value the property at and not what a salesman told you.