Progressive Rolls Out HO Program in Michigan

Progressive, the country’s fourth largest auto insurance company, will make its homeowners insurance product available to be sold by independent agents in Michigan next month. The company is a leader in collecting and using data to rate its auto policies more accurately and is applying the same data-driven approach to pricing homeowners insurance.

Progressive launched its homeowners product in Arizona in March, where it was sold initially through 50 independent agents. More than 190 agents now sell the product in Arizona. The company is continuing its controlled rollout by bringing the product to Michigan. The company will make its homeowners product available through 80 Michigan independent agents initially.

These agents will work with customers to determine accurate replacement costs by gathering information about the unique characteristics of the customer’s home, resulting in more accurate, more competitive rates, according to John Barbagallo, Homeowners General Manager.

The rating method used by Progressive includes taking into consideration each home’s unique characteristics, resulting in more accurate pricing and policies that provide coverage to rebuild the home.

“There is often a vast difference in the cost to rebuild a home vs. replacing a home,” said Barbagallo. “Many policies don’t take into consideration that when a home is destroyed by fire, for example, the cost to rebuild on the original site is higher than the cost to build that house on another piece of property because of the need to clear debris and work around existing landscaping, not to mention inflation and other factors that increase costs. As a result, many homeowners come up short after a total loss claim.”

To help consumers understand how much homeowners insurance to purchase, independent agents who represent Progressive will use a sophisticated “replacement cost estimator.” Consumers will provide their agent with detailed information about their home, such as number of fireplaces, types of flooring, appliance and fixture grade and other unique features, to determine an accurate replacement cost for their home.