FORT LAUDERDALE, Florida. According to CNBC, Amazon is reportedly considering entering the home insurance market. Yet, critics say that Amazon might have a harder time breaking into the home insurance market than it had breaking into the home delivery space. Offering home insurance is more complex because of the highly-regulated nature of the industry. Unlike shipping goods across state lines, insurance must comply with the regulations of each state. Offering insurance in all 50 states could be a unique challenge. It isn’t clear whether Amazon would team up with another experienced company in the area.
Yet, if Amazon manages to expand its market to home insurance, will it really be able to cut costs, and at what ultimate cost to consumers? While some companies offer individuals price reductions when they have home security systems, some critics of Amazon claim that the company won’t be able to offer greater price reductions than those offered by other companies for similar preventative measures on the part of homeowners.
Amazon would have to offer protections for the claims it insures. According to the Insurance Information Institute, the most expensive claims involve fire, lightning, and personal injury. Water damage is also quite costly. Weather-related damage claims, wind damage, and water damage claims were the three top claims submitted.
How might Amazon have an advantage in the home insurance market? The fact that it sells connected home devices gives it unprecedented access to homeowner’s data. Insurers can use this data to potentially examine risk.
Amazon’s talk of entering the market has already had an impact. According to Business Insider, home insurance stocks went down after Amazon showed interest in entering the market.
Would you purchase Amazon home insurance? For many homeowners, price is a major consideration. But with insurance, you need to carefully evaluate what is and isn’t being covered in your policy. When buying any home insurance, it is important to assess your risks and to take out as much insurance as you can afford for your needs. With storms getting stronger, flood zones changing due to changed sea levels, and other risks, homeowners are wise to be informed and to buy the right kind of insurance for their needs.
You also want an insurance company you can trust. When it comes time to make a claim, you want adjusters to respond quickly and honestly. Read reviews about the claims process. If Amazon goes into home insurance, it might be some time before the first claims are made. How the company handles customer service might have a big impact on whether the policies are worth the cost.
If you have had trouble making an insurance claim or getting a claim settled, consider speaking to Leader & Leader, P.A., insurance claims lawyers in Fort Lauderdale, Florida. Our firm works closely with homeowners to help them get the settlement they may deserve under the law. Visit us at https://leader-law.com/ to learn more.
Leader & Leader, P.A.
633 South Andrews Ave.
Fort Lauderdale, FL33301