We’re pretty conscious about the information that we share online. Even more so, we’re very protective of the personal data that strangers such as Insurance Brokers ask of us. So when we are confronted with a gigantic questionnaire, this can test our comfort level and possibly send us out the door. As invasive as it appears, these questions ensure that your insurance policy is as personalized and discounted as much as possible.
But really, why so many personal questions?
Quite simply, it’s to fit you into a risk group. Insurers have access to an immense amount of anonymous, aggregated data and data from thousands (possibly millions) of data points across massive claims databases. Insurance companies are very good at building profiles and developing risk analyses based on these profiles. So, in the end, they have a certain level of confidence in how likely someone is to submit a claim.
It’s about getting you the most coverage for the lowest price.
The more detail you feel comfortable giving your broker, the better the insurer can develop your policy. There are always ways to build discounts on your insurance, and here are a few examples of items that could influence the cost of your policy.
- Type of house.
- Your date of birth.
- Is there a wood stove?
- Is there an alarm system?
- What is the distance to the nearest fire hydrant?
- How many adults live in the house?
- The geographic location?
- And on and on and on.
It’s somewhat similar to how banks determine eligibility for mortgages and loans. You fire in a bunch of personal information. Based on a programmatic analysis of this information, you are either approved or denied because their calculations are extremely good at predicting whether you are likely to be able to afford the loan or mortgage payments.
If you have any concerns about the questions you are being asked concerning your home insurance quote, don’t hesitate to call us!