We’ve mentioned time and again that insurance is mostly a “marketing” business.
While various companies can offer somewhat unique service and minor coverage tweaks, at the end of the day, there isn’t much difference between what’s available to homeowners in the way of insurance.
Homeowners can purchase a bare-bones homeowners insurance policy or opt for the most comprehensive coverage available in their state.
Once the comfort level and risk tolerance are determined, homeowners tend to simply go with the agent or insurer whose “marketing” they find most attractive.
Where Does Green Tree Servicing Come Into Play?
Well, they have the goods as far as insurers are concerned. As a mortgage lender and loan servicer, they have an existing client list and relationship with their borrower that’s ripe for the insurance pickin’.
Green Tree has partnered with Ranchers and Farmers Mutual Insurance Company (Beaumont, TX) and American Bankers Insurance Company of Florida to offer property and liability coverage to Green Tree’s existing clients.
And Viola! You have “Green Tree Insurance Agency” and the Green Tree Home Insurance Advantage insurance product.
Green Tree probably takes a cut of commission for the successful marketing and the insurers get access to several clients who may or may not read the fine print and realize Green Tree has nothing to do with it, other than “selling” your profile for some targeted marketing materials.
So, What About The Policy?
You’re asking the right questions. Without having access to the entire policy, TTAI cannot go into specific detail, but the policy appears to be a basic named perils policy, with everyday, run-of-the mill coverage, and the basic available add-ons for coverage (which increase the insurance premium).
Replacement cost coverage is included (on the house, not your contents) on the policy versus actual cash value.
Read more about the difference between replacement cost and actual cash value.
Here are the available options:
Comprehensive Coverage Endorsement – this is the coverage you would want to add to make this policy more like the “all risk” policy. Many insurance agents recommend an all risk policy versus named perils in order to be “covered” against more overall causes of loss.
Replacement Cost Coverage for Personal Property – this is highly recommended coverage. If your “stuff” is destroyed by a covered loss, you would receive new items of “like kind and quality” up to the policy contents limit.
Schedules Personal Property – If you have expensive jewelry, guns, silverware etc., you need to add additional coverage for the specific items.
Water Backup of Sewers and Drains – Always recommended. You do not want to be stuck paying for the cleanup and damage resulting from a backed up sewer…ewwww!
How Does it Stack Up to the Competition?
In a word…lackluster. This is a base policy with available options, at additional cost, to make it about as good as average.
On a positive note, the insurers Green Tree works with offer a decreasing deductible (not applicable to windstorms) which results in a $50 decrease for every year you are insurance claim free (similar to the Nationwide Vanishing Deductible).
Also, you may be able to un-clutter your life a little by paying your insurance bill along with your Green Tree monthly mortgage payment if you opt for their coverage.
Green Tree Insurance Agency also has partners that specialize in homeowners insurance designed for manufactured home (MH) owners.