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Home Insurance Influences: An Interview with Mike Kahn of Lynnae Insurance Group

By Mike Kahn

Tell us a little bit about your company and its foundation.

Mike Kahn and his wife Jill started their company, Lynnae Insurance Group, back in 2002, while both were still in college. At the time, Mike was working for a mortgage company and was frequently referring a lot of business to American National. Knowing they needed more assistance, Jill applied for a job and became an agent with them. A couple weeks later, however, they decided that they wanted to work together. While engaged to be married, they started their own business at the young age of 21. The "rest is history," as Mike describes it.

Lynnae Insurance Group went on to become the fastest growing insurance agency in history of American National Property and Casualty.

What is your company's mission?

Mike and Jill wanted to set out to change the perception of insurance companies. They didn't want to run their business with old techniques, or be viewed as an old person's agency. Both having degrees in marketing, they created a new-age feeling and were not afraid to implement different practices than were using before. Mike refers to their use of current technology, along with having good rates, and products, allowed them to create a more modern and helpful business model, which is something they still try to emulate today.

What are some of the services your company provides?

  • Home Insurance
  • Life Insurance
  • Auto Insurance
  • Business Insurance

Is there a generalized formula that is used to determine home value and thus home insurance?

The typical rule of thumb when determining home value, and thus home insurance, is $100 per square foot. So if you had a 1,500 sq. ft. home, then typical replacement costs would be $150,000. It should be mentioned that insurance considers replacement value, not market value. A 1,500 sq. ft. home on a lake would have more market value than one in the country, but the replacement value could be the same. We want to know how much it's going to cost to rebuild that home after a tornado, or fire, or etc. The baseline is $100 per sq. ft., and goes up from there. If a home features more custom carpentry, or expensive materials, then the price per square foot increases.

The rule of thumb for homeowners insurance, after determining the replacement value, is typically 1%. If your home value is $200,000, then the insurance should be less than $2,000. However, this can vary due to claim, bad credit, roofs, and etc.

What are five aspects that affect the cost of home insurance?

  1. Age of the Home: Typically, a newer home equates to a lower price.
  2. Age of the Roof: In Oklahoma, the age and state of your roof has a big influence on your insurance plan.
  3. Credit Score: Credit score does affect your insurance as there is a correlation between credit score and number of claims filed. The lower the credit score typically means a higher likeliness to file claims.
  4. Number of Previous Claims: A person with two or three hail claims is, unfortunately, going to have a higher rate than someone who does not. The three biggest past claims that affect your insurance are water, fire, and theft.
  5. Type of Shingles: With the numerous hail storms in Oklahoma, many insurance companies are now offering big discounts for shingles that hold up better to hail storms.

Is there any additional information you wish to share on the topic of influences on home insurance policy?

Again, in Oklahoma, it's really important that your roof is sturdy and well maintained. Class 4 Impact Resistant shingles, though slightly more expensive and time consuming to install, withstand stronger weather conditions. Because of this, people with Class 4 shingles can receive a 30% insurance discount from us.

What's the best way for people to get in contact with you and your company?

  • Phone: 405-217-8851
  • Email: info@lynnaeinsurance.com
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