Homeowner’s insurance and auto insurance: buy together?

Question: Currently looking for homeowner’s insurance on Long Island – spoke to a rep whose quote I think I’m gonna accept – Of course, he’s also trying to sell me every other kind of insurance under the sun, including auto insurance.

I told him that I was happy with my current auto insurance with another company and didn’t want to switch. He said I should think about the fact that a lot of insurance companies are looking to drop homeowners’ policies whenever possible. His company, according to him, is not currently looking to do so (obviously, since they’re offering me a policy) but he said that if they do look to shed homeowners’ policies in the future, they’d be much more likely to do so if a person only has home insurance, and much less likely if that person also has auto and/or life insurance.

Is this guy full of s**t and just trying to sell me an extra policy, or is there any truth to what he’s saying?

Answer: If they get out of the business for homeowners they usually drop all their homeowners, not just the ones who only have homeowners’ insurance. Usually the only way to drop their homeowners is to declare they are no longer offering homeowners’ insurance in that state. They cannot then turn around and make an exception for their favorite customers. However they can drop you for a valid reason such as “hurricane, flood, windstorm risk”.

I suspect that the insurance broker is feeding you a line but getting a quote won’t hurt. Just tell him to give you the numbers and you’ll make your own deicsion.

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