Homeowners Insurance

[WanderALot]

Hello,

Well, it's time for my homeowner's insurance renewal. We currently have a policy that pays "Extended Replacement Cost of 20%" with a $1000 deductible. My insurance company offers an extended replacement of 40%. I'm thinking about going with the new policy with a $2500 deductible. Cost wise, I get more coverage for $125 cheaper/year but with a higher deductible. Would anyone here pay $125/year to get the lower $1000 deductible?

Incidentally, my agent suggested that I consider a rider that would cover special assessments levied against my homeowner's association. She said that if my association gets sued and looses and has an assessment that has to be paid by the homeowners, the regular policy will only cover $1k and my umbrella will not cover any judgements. I checked my umbrella policy and it looks like she's right, there's an exclusion for this sort of thing. The rider she is suggesting covers upto $50k. My association has liability insurance for this so I thought this would be covered under their policy? Also, my HOA has 190 homes in it. So it would seem that this judgement would have to be pretty huge to exceed the liability limits of the HOA. Anyone here pay for this coverage?

Thanks.

[73ss454]

I just got my yearly bill and another wopping increase. I called another agent and went with a 2500 ded. and a 5% hurricane ded. We now live in Fla so I'm sure we need the hurricane ins. I bought the house 4 years ago and the HO ins. has risen 300%. I'm down to 1539 for the year and that's not too bad in Fla. Also went with 500K liability.

[SecondCor521]

On the HOA thing, I would think a good route would be to work to ensure that your HOA has adequate coverage. The cost of that policy would be spread out over those 190 homes and be paid through your regular HOA dues.

2Cor521

[Goonie]

I just paid our HO ins the other day. It DROPPED $28 since last year!
I was a little surprised at that, because we had a claim for a lot of hail damage from a big storm that came through right after we paid last years premiums. Our agent had assured us that the claim wouldn't adversely affect our costs, and I guess he was right.

Our umbrella policy is lower too, but I can't remember by how much.

My auto ins dropped drastically last fall when I replaced my old Mitsubishi Galant with an '06 HHR.

The only premium that went up was health ins. It went up $16/month January 1st (my portion....employer picked up 80% and I paid 20%). It will go up another $28/month starting next month, because of my ER last week. I go from paying 20% of the premiums to paying 25%. I guess I can handle that! :

[Nords]

Quote:

Originally Posted by WanderALot Would anyone here pay $125/year to get the lower $1000 deductible?

No. I'd take the max deduction possible.

Quote:

Originally Posted by WanderALot Anyone here pay for this coverage?

No.

I've read that most HOAs are dramatically underinsured for the expenses of asteroid strikes and locust attacks. I'm surprised that she hasn't tried to sell help you protect yourself with those riders, too. If she's not gonna keep your best interests in mind, then maybe it's time for a new insurance agent!

[WanderALot]

Quote:

Originally Posted by Nords I've read that most HOAs are dramatically underinsured for the expenses of asteroid strikes and locust attacks. I'm surprised that she hasn't tried to sell help you protect yourself with those riders, too. If she's not gonna keep your best interests in mind, then maybe it's time for a new insurance agent!

Yeah, I had considered that she was trying up her commission. I'm just worried about missing something obvious in my insurance coverage. Especially in lawsuit mad CA!

[farmerEd]

I always go with highest deductible possible on any insurance I get...you don't want to put in a lot of claims anyway for the small stuff because they end up getting you screwed with higher premiums and possible cancellation...insurance is for those things that you couldn't afford to replace if the worst happens...not to cover every little item that pops up.

I've owned homes since I was 21 and never put in for a single claim, but can't complain much about my HO ins...under $1000 premium for full replacement cost (house and several outbuildings) plus a $2M umbrella policy...guess there is a benefit from not living in a hurricane zone

[Coach]

WanderALot, I love high deductibles. But a word of warning -- I switched up from a $1000 deductible. And then got a note from my mortgage company that they won't allow anything higher than $1000. So I called and switched back. She said, "We might have to inspect your home before we can lower it." Eventually they decided they didn't need to inspect, but I was sweating bullets there for a little while.

Coach

[WanderALot]

Thanks for the replies everyone. I'm switching to the 2500 deductible without the safety over-insurance of the HOA assessment rider.