Importance of Choosing Hole in One Insurance that's Underwritten

One of the most important things to consider when purchasing hole in one insurance is the dependability and credibility of theprovider. There are many providers to choose from, however, you'll want to be careful to choose the right one. The company should have a dependable underwriter. Learn why this is crucial to
your event coverage and how you can have peace of mind about your coverage with the tips below.

What is an Underwriter for Hole In One Insurance?

An underwriter is a company or individual who's primary job is to calculate, examine and identify potential loss risks for an event policy. Instead of the risk falling completely on the shoulders of the provider, it is shifted to the underwriter. Every event is unique. That's why claims by providers that offer extremely low prices across the board for any type of event is not only very risky to that provider and the consumer, but also very unrealistic. Each event varies in the amount rewarded, type of course, etc. The underwriter determines
and assumes risks that the provider may or may not be able to take.

Why is an Underwriter so Important in Hole in One Insurance?

A provider who is serious about their business and the protection of their clients during an event will be underwritten by a solid underwriter. Companies who do not have this type of backing should probably not be considered due to the high risk, even if the premium is extremely low. What would happen if you offered a million dollar hole in one prize and someone actually made the hole in one? If the provider you chose was not backed by an underwriter, and didn't have sufficient coverage, then you would still end up with the
prize bill. That company not only took a high risk by not having an underwriter, but also put you at risk unnecessarily. Even if you have to pay a little more on the premium, it's worth having the additional protection.

Questions to Ask Your Provider

So, you've discovered that your provider does use an underwriter. What's next? You should now proceed to ask a few questions for further investigation. Remember, you're not trying to scrutinize the provider, but only trying to ensure that you're going to be protected fully if someone does get a hole in one during your event or tournament.

Here are a few questions you should ask:

1. Is the provider and underwriter licensed in your state?

Both the underwriting insurance company and your provider should be licensed in your state. If they're not, the chances of actual coverage are slim if someone wins at your event. This is especially important if you find a provider on the Internet or if someone approaches your business or home as a door-to-door salesman for this type of insurance.

One way to save time when searching online is to perform searches specific to your particular state. For example, you could type the following into a search engine block to find a provider:

*hole in one insurance (include your state name here)
*hole in one insurance provider for (include your state name here)
*(include your state name here) provider for hole in one insurance
*hole in one insurance providers coverage all states
*any state hole in one insurance
*all states hole in one insurance

Performing these types of searches will render results that are specific to either your own state or companies that provide insurance for all states.

2. What is the name and contact information of the underwriter?

Your provider should be very open and upfront about who is underwriting your policy. Why would they hide this information? Simply asking for this information will usually reveal if the company you're considering is honest or not. You can also verify the credentials of the underwriter once you obtain this information.

3. How does the company rate in terms of insurance grading?

The grading system was developed to help consumers determine who the most dependable insurers are as well as reveal any who are not so grand. There are a number of grading companies in the insurance industry. You'll want to ask your provider or the underwriter if they're graded, and by whom so you can verify their rating. Many hole in one insurance providers will advertise this information up front, such as, "Our company is underwritten by __________ Company, which has an A+ Rating with _______________ Company. The provider realizes that this is important to consumers because of the many scams going on today (especially online).

Even when a company uses this type of information in their advertising, you can still verify that they are actually associated with the underwriter for peace of mind.

Does having an Underwriter Cause the Premium to Rise?

The premiums are usually affected by the value of the prize and the risk factors or, in other words, what are the odds for someone to actually make the hole in one? Some providers have a minimum price for smaller
events. Although having an underwriter doesn't actually raise prices directly, it does highly increase the value and dependability of a policy. As mentioned earlier, a policy that is extremely low priced and not
underwritten by a dependable company isn't worth the risk. You should only begin comparing prices among those companies who you've proven to be safe, honest and underwritten by a "grade A+" underwriter if
possible. Never make a comparison based solely on price.

By following these steps, you can have a worry-free event and focus on promotions instead of worrying about whether you're covered or not. Being aware as a consumer will enable you to find the best possible hole in one insurance coverage for your event.