Shopping for insurance

[begreen]

Yes, some like Safeco quoted higher than we are currently paying. So far Progressive has the best quote.

 

[jharkin]

The same companies always rank at the top in customer service and claims satisfaction surveys:

1. USAA (have to be a veteran)
2. Amica

i.e.
https://www.jdpower.com/business/press-releases/jd-power-2018-us-property-claims-satisfaction-study


I have never heard of a bad experience from either, and since i don't qualify for USAA, I am a 25 year satisfied Amica customer (for everything - life, auto, home & umbrella). I've been though claims with them multiple times, never had my rates go up from a claim, never had to wait or fight for compensation, never even had to handle a settlement check.

I'll agree with @Ashful on the big deductibles as well. Typically your best value is to carry the largest deductible you can afford out of pocket from your emergency funds paired to the biggest liability limit they offer. 10k deductable might be a stretch for lots of folks, I carry $5k myself. But don't forget it doesn't take a total loss to dip into the insurance - 3 years back a snowstorm dropped a tree on my garage, ended up being a $20k + double claim (homeowners and auto)... Which Amica paid no questions asked with zero impact to my renewal

 

[jharkin]

Hxxx fire, if I was running a 10k deductible there would not be any reason the to be paying them in the first place. I can understand a $1000 deductable perhaps that is what you meant? each area is different though. If you didn't know it already your rate quotes are tied to your credit scores ( more BS)

Not everywhere. The laws vary by state, and my state (Massachusetts) does not allow insurance companies to look at your credit score.

Our rates are also heavily regulated and it would not surprise me if I am paying less than most of you...Been through that discussion many times with lots of folks.......

if looking at home insurance take the sq ft of home x$175.00 ( my area) for a rough estimate of the amount to cover house. Now that $175 is going to vary some by area like California ( Closer to $1750.00 guesstamit) or East Coast ($750+ guesstamit) basically it is the cost per ft to build a new home of similar quality. Insurance is just a legitimized version of what Guido and Vinny sold on the corner.

Your numbers are all over the map... Rebuild costs are NOT the same thing as the market cost per sq ft to buy an existing home. I.e. where I live market costs can be anywhere from 200-400/sq ft or more (much more in Boston and NYC). The insurance company I think uses a number of around $200/sq to figure contractor rates and calculate the rebuild cost. I doubt in CA where houses sell for 1k/sq that contractors are getting 1k for renovations

Give you an example.
Market value of my house is probably about 450k
Insurance company puts the rebuild value around 325-350k
I pay an annual premium of about $1200 with a $5k deductible.


When the tree fell on my garage, the insurance payout paid for almost 15 years of premiums... and that's a pretty small loss. Seems like a good deal to me.


EDIT to add: I feel for you guys getting jacked on the rates... just don't have the same experience - which is shy I suggest calling Amica and/or USAA if eligible I think in the 10 years I've lived here my annual was risen from $950 to $1200 but the coverage amount has gone up about 75-100k in parallel to reflect increased rebuilding costs. Basically right in line with inflation...

 

[Ashful]

I’ve always had my policies listed at “full replacement value”. The rebuild cost on my house, following historically-accurate methods in the event of a total loss (eg. earthquake), would be substantially higher than the sale price of my house + property. The “full replacement value” clause does cost more than cash-value coverage, but it’s the only way to go if you are in this situation.

Lots of comments, and some complaints, about credit score affecting premiums. Why not? It has been very clearly demonstrated that the low credit score population is higher risk, demographically speaking. It’s simple math, you can’t expect a company to not use whatever few tools are available to them, to make broad judgements of risk.

 

[jharkin]

I’ve always had my policies listed at “full replacement value”. The rebuild cost on my house, following historically-accurate methods in the event of a total loss (eg. earthquake), would be substantially higher than the sale price of my house + property. The “full replacement value” clause does cost more than cash-value coverage, but it’s the only way to go if you are in this situation.

Excellent point, and our situation is similar to yours, give the age of our house a partial rebuild keeping it historically accurate could cost more than a full rebuild from a total loss using all modern methods.

They way Amica handled this for my policy is we have some special rider allowing up to 150% or such of the formula calculated replacement cost due to the age of the house. I don't recall the exact language as the policy is at home but I could look if anyone is interested.

Lots of comments, and some complaints, about credit score affecting premiums. Why not? It has been very clearly demonstrated that the low credit score population is higher risk, demographically speaking. It’s simple math, you can’t expect a company to not use whatever few tools are available to them, to make broad judgements of risk.

True - and such calculations would likely be to my personal benefit... I was just pointing out that my state doesn't allow it (at least not for auto, i have to double check on home), and yet our rates don't seem to be sky high as a result...

 

[Ashful]

Excellent point, and our situation is similar to yours, give the age of our house a partial rebuild keeping it historically accurate could cost more than a full rebuild from a total loss using all modern methods.

They way Amica handled this for my policy is we have some special rider allowing up to 150% or such of the formula calculated replacement cost due to the age of the house. I don't recall the exact language as the policy is at home but I could look if anyone is interested.

I may ask you for that at some point, I’m due to start re-shopping. It’s been 7 years on the current policy.

True - and such calculations would likely be to my personal benefit... I was just pointing out that my state doesn't allow it (at least not for auto, i have to double check on home), and yet our rates don't seem to be sky high as a result...

I suspect the weighting on this single factor is always relatively low. It’s just one of probably several dozen variables, that goes into their equation. Also, I suspect the weighting of this factor would be different for homeowners, auto, and life insurances. Just as my life insurance co. cares if I race cars or skydive, while my homeowners insurance co. has never asked those questions.

 

[Dobish]

i have gone though a local agent who shops around and sees what the best deal they can get is. I have been with Safeco for a number of years, and state farm as well. With all of the recent hail storms here, rates for home and auto jumped, even though I didn't submit a claim.

Every so often I will call around just for a sanity check, but my agent is looking out and always gets the best rates.

I have found that sometimes I have to ask about available discounts (education, state employee, good driving, military, etc.) because they often get missed. IF you can can, USAA has great rates.

 

[Montanalocal]

I have had the same insurance for over 30 years. I have been reluctant to change insurance companies because of the fact that I have large firewood stacks close to my house. I do remember that back when I signed up, they came and took pictures of my house. I am concerned that if I sign up with a new insurance company, they will either mandate I move my firewood, or that they will refuse to insure me. Anyone else have any experience with this?

 

[blades]

I have had the same insurance for over 30 years. I have been reluctant to change insurance companies because of the fact that I have large firewood stacks close to my house. I do remember that back when I signed up, they came and took pictures of my house. I am concerned that if I sign up with a new insurance company, they will either mandate I move my firewood, or that they will refuse to insure me. Anyone else have any experience with this?

never with ins. now with the local takeamint and long nosed neighbors that was another matter. solved that by moving to between nowhere and nothing.

 

[Highbeam]

The rebuild cost on my house, following historically-accurate methods in the event of a total loss (eg. earthquake), would be substantially higher than the sale price of my house + property.

Are you really able to get earthquake insurance on your old home? I couldn't get it for my 1963 place.

 

[Ashful]

Are you really able to get earthquake insurance on your old home? I couldn't get it for my 1963 place.

No, sorry, that was a bad example. Earthquakes are so uncommon here, I haven’t even checked my policy for that.

 

[blades]

Not common here either but we have been rattled a few time in the last 10 years enough that it made the news locally any way.

 

[Ashful]

The one that closed the Washington Monument for a few months in late summer 2011 rocked us well enough that everyone felt it. That’s the only one I can remember in four and a half decades of living here, though.