| The economic term "perfect substitute" applies to | | | | However, safeguards are in place during the home |
| products that are so similar there really is not point in | | | | buying process that will assist one in determining if |
| trying to market differences to the public. Regardless | | | | the company selected is acceptable. Real estate |
| of techniques used, the majority of buyers will see | | | | professionals such as agents, appraisers, underwriters |
| one brand as exactly the same as another. Salt is a | | | | and so forth all come together during a closing to |
| good example of such a product. All other products | | | | verify if the documentation presented is acceptable. |
| proceed along a scale away from the perfect | | | | At this time opinions can be offered on the |
| substitute varying in degrees of difference among | | | | acceptability of the insurer chosen. Provided the |
| their closest competitors. Home insurance is a | | | | source is unbiased it may be well worth taking such |
| product that while very close to the perfect | | | | advice as often times these people have been |
| substitute of salt, is still far enough away that | | | | privileged to information not normally available. |
| aggressive marketing and advertising is used to | | | | Furthermore these are individuals that are |
| convince the public that a difference does exist | | | | representing entities, such as the lender, which have |
| between cheap house insurance and more expensive | | | | a vested interest in making sure the home insurance |
| insurance. The old adage, you get what you pay for | | | | is acceptable. |
| often rings true, but when it comes to cheap house | | | | Unknown inexpensive home owners insurance |
| insurance, do you? | | | | purchased by their clients may have a great |
| Homeowners insurance is not necessarily a product | | | | reputation regarding claim assistance and price |
| that can be judged based on price alone and so | | | | adjustments. More expensive carriers may have a |
| providers rarely compete based on price or coverage | | | | reputation for unreachable customer service or |
| limits. Limits of coverage are standard and are usually | | | | complicated discount formulas. Such insiders are just |
| adjusted only at the request of the purchaser. If a | | | | one source to judge whether cheap house insurance |
| mortgage is attached to the property the minimum | | | | is worth purchasing. Another more obvious source is |
| coverage of cheap house insurance is going to be | | | | the Better Business Bureau which has listings of |
| the same as the minimum coverage from a more | | | | various companies and if grievances have been filed. |
| expensive provider as these minimums are | | | | House insurance is a product that is required by |
| determined by the lender not the insurance company. | | | | lenders and thus has more stake holders than just |
| The main point of differentiation in any advertising | | | | the purchaser. It is regulated and scrutinized by |
| campaign among well known providers and providers | | | | financial entities that have a vested interest in making |
| of lesser known more inexpensive insurance seems | | | | sure that all policies including inexpensive ones, will |
| to be based on the handling of claims. Advertisers will | | | | provide the coverage outlined in the policy. This may |
| make you believe that cheap house insurance will | | | | be a product whose differences lie largely with the |
| offer substandard service during a claim. | | | | creative forces behind commercials. |