Boo Home insurance

[bclover]

My auto insurance renewal notice was sent to me yesterday and I decided to do a little shopping around on all three of my polices (auto, home and umbrella)

Anyhoo, I noticed a 350 buck surcharge on my home insurance. WTH??
two years ago a tree fell through my bedroom window and I put in a claim to have it fixed.

So, I pay for home insurance and then I get penalized for using it

stays on for 3 years so that's a 1000 hit.

Do all insurance companies do this, I have allstate

 

[Newventurer]

Oh no, great, I also have Allstate and a neighbors tree fell on my house this month. They said it was an act of God and therefore they do not subrogate to neighbors insurance, so I am sure I will be looking at the same issue next renewal, only good news is that it just renewed so I have a year before it hits. They have hit me with 20%+ increases the three years I have been with them.

 

[athena53]

Do all insurance companies do this, I have allstate

Most do. Statistically, people who have a history of recent claims are more likely to file one in the next year. That's why most people are very cautious about submitting small claims. In your case, since your roof likely cost well over $1,000, you came out ahead. Sometimes, rather than surcharge due to past claims, they just don't give you a "claim-free discount". Same effect, of course.

While people do complain about having to refrain from filing smaller claims because the surcharges make it not worth it, that does keep the cost of coverage down for everyone.

 

[ExFlyBoy5]

Speaking of Allstate, they announced in Georgia that they are raising auto rates an average of 25% but perhaps as high as 58.3% in some cases. Yep...you're in good hands, for sure if you are in Georgia.

http://www.ajc.com/news/news/state-...rance-commissioner-warns-of-massive-al/nq3yK/

FWIW...Amica has been great to me. I have had my home owners insurance actually DECREASE two years in a row!

 

[Newventurer]

Speaking of Allstate, they announced in Georgia that they are raising auto rates an average of 25% but perhaps as high as 58.3% in some cases. Yep...you're in good hands, for sure if you are in Georgia.

Georgia Insurance Commissioner warns of big Allstate rate hike | www.ajc.com

FWIW...Amica has been great to me. I have had my home owners insurance actually DECREASE two years in a row!

Would interesting to see what others are paying per sq ft for coverage. I know there are lots of variables - coverage, inclusions, risk area, multiple policy discounts, deductibles, etc. Mine is $.61 per sq ft per year with $1000 deductible.

 

[ExFlyBoy5]

Would interesting to see what others are paying per sq ft for coverage. I know there are lots of variables - coverage, inclusions, risk area, multiple policy discounts, deductibles, etc. Mine is $.61 per sq ft per year with $1000 deductible.

Yeah, there are SOOO many variables. My policy includes a 30% additional dwelling replacement coverage (basically up to $327K dwelling, $189K personal property and $75K loss of use) and a rider for jewelry. But, after the applied dividend, the cost is $808 a year and with a house @ 2400 SF, that comes out to $.3366 per square foot; deductible is $1500.

 

[Bamaman]

The mode of insurance companies is to quote policies at relatively low rates. Then they raise rates 15%-20% every year. On homeowners' insurance, they try to substantiate the rates saying the replacement value of rebuilding a house goes up that much every year--after they plug the numbers into an industry wide computer system. They were charging me by the $ thousand for coverage, and ended up having my home insured for 50% more than it was even worth.

The other problem is that they'll charge you 30% more for auto coverage or homeowners' coverage if you cancel either coverage--taking it to a cheaper company.

I have Allstate homeowners' and auto coverage for really good prices, and I'm not complaining about a 5.5% increase after reading about other states.

When I bought a new house 3 mos. ago, I went with Essurance, Allstate's on line company. Rates were incredibly low, however they were very, very conservative in administration. They sent out an inspector to look at the house, and they pulled Lexis/Nexis and driving records on me--looking for prior claims and tickets.

It's just so important to keep a clean driving record and no claims on homeowners' policies. Then if your insurance policies get too expensive, you can switch companies without any problems. I have changed companies every 3-4 years in the past--to keep down rates.

 

[walkinwood]

Asking what others pay will not give you any relevant information. Call the insurance companies in your area and ask for estimates. Check with a local insurance agent too.

 

[jazz4cash]

State Farm surcharged us for auto insurance after a claim and homeowners jumped 20 pct. We switched to Nationwide and the homeowners coverage was half of what we were paying. The auto was about the same but we saved 15 pct with their usage monitor. Year 2 the homeowners went up 4 pct.
The thing that kills me is that if you are in HCOL area 2/3rds of the value is in the lot and it's very unlikely you won't be able reuse your lot.


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[RobbieB]

You really want to avoid a claim on your homeowners insurance. Really.

Unless it was over 5% of the value of the home I would just fix it myself.

 

[Looking4Ward]

State Farm surcharged us for auto insurance after a claim and homeowners jumped 20 pct. We switched to Nationwide and the homeowners coverage was half of what we were paying. The auto was about the same but we saved 15 pct with their usage monitor. Year 2 the homeowners went up 4 pct.
The thing that kills me is that if you are in HCOL area 2/3rds of the value is in the lot and it's very unlikely you won't be able reuse your lot.


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I used to have to fight that all the time. Had a home sitting on over an acre of waterfront property. The land was easily worth three times the value of the home which was even reflected in the tax appraisal. But the insurance companies would always insist on using the full value.

 

[REWahoo]

My first reaction on seeing the thread title: What the heck is a "Boo Home"?

 

[bingybear]

did you have a "no claims deduction"? you would loose that when filing a claim... at least for some number of years. But the charge could be a claim bonus for the insurer.

 

[ls99]

OP forgot the "hiss" part.

A few years ago had new roof put on the house. The next year had a golf ball sized hail puch some holes. After their adjuster looked it over, nearly the full roof replacement cost was approved. A few percent increase in homeowners policy cost. My guess is over twenty years or so Erie will recover the payout. No complaints at all.

 

[Fedup]

I don't know but never claimed anything on my home insurance yet. But I think they are for big event like fire.

 

[bclover]

You really want to avoid a claim on your homeowners insurance. Really.

Unless it was over 5% of the value of the home I would just fix it myself.

Which Boggles my mind Robbie. Don't all the insurance company spout nonsense about reassurance? How reassuring is it to know if my house gets damaged i still maybe out thousands of dollars

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[akck]

We used to have Allstate for home and auto. After years of stable payments, rates started to go up about every other year with no claims. We were able to keep premiums stable by upping the deductibles on both. Finally, rates had a large increase, so I shopped around and was able to reduce premiums by 40-50%, switching to Safeco 3 years ago. So far, Safeco rates have remained about the same.


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[Fedup]

I had Allstate too. It's the worst among my insurance. AAA is best because it's non profit, at least that's what they told me. My insurance actually went down 30%, unheard of in previous years.

 

[ERD50]

My first reaction on seeing the thread title: What the heck is a "Boo Home"?

Maybe OP lives in a Ghost Town?

-ERD50

 

[jazz4cash]

I often wonder if insurance companies have some sort of formula for increasing rates based on higher likelihood of a claim after x yrs of coverage with no claims.


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[athena53]

I often wonder if insurance companies have some sort of formula for increasing rates based on higher likelihood of a claim after x yrs of coverage with no claims.

Not that I know of, and I'm a retired property-casualty actuary. I can understand your reasoning- that it becomes less and less likely that you'll have X+1 years claim-free, x+2 years claim-free, etc. Rates (including all the variable rating factors that make your premium different from mine) have to be approved by a State Insurance Department before they can be used, and supported by data. Even when supported by statistics, I think regulators would have a hard time letting companies surcharge people because they have clean records. It could also drive profitable customers away from that insurer.

 

[Newventurer]

You really want to avoid a claim on your homeowners insurance. Really.

Unless it was over 5% of the value of the home I would just fix it myself.

I guess following this logic, one would set their deductible as high as 5% of their homes value, if that is even allowed. Would be interesting to know if this is possible. If your plan is to self insure up to that amount then you might as well get it reflected in your premium.

 

[Fedup]

After reading this, I need to remind the HOA to tie to a few trees that they plan near my house before it collapses onto my roof. The wind was blowing hard and the tree bend into our yard.

 

[imoldernu]

Re: house insurance... good!

In my dotage have become pretty much a "live and let live" guy. I don't rock the boat too much, as it seems to always end up in more problems and anxiety.

When we had a hailstorm about a month ago, I found a few holes in my window screens, but chalked it up to just nature at work, and when I got time, to bring them to the hardware store for repairs.

A week ago, a young man knocked at my door and asked I wanted him to check for hail damage. I said no, that I'd take care of it myself, but he asked if he could check my roof. I didn't think so, as it looked fine to me, but he was very nice, and so I let him use his ladder to check.

When he came down, he told me I might be in line for a new roof. I brushed it aside but he offered to check with my insurance company. This morning, a rep from the insurance company came out, and wrote up an estimate for a new roof, some dented flashing, paint for a small drip stain in our kitchen ceiling (which meant painting the entire kitchen ceiling and our living/dining room ceiling as well), the screens, and some other minor repairs. On the spot, thousands of dollars in a check, with more to come when the job was finished.

I think the word is flabbergasted... Work to begin in two weeks, on a roof that looked fine to me. Total cost will be the $500 deductible.

Since the house was built in 2001, it means that the roof was just 15 years old. I thought that the insurance would cover depreciated cost. Not so... an entire new roof, with some upgrades which weren't required when the house was built... (ice/water shield).

The estimate included details for all repairs, including moving furniture, paint shielding, base coats, clean up etc...

I had anticipated a quick inspection and the adjuster to tell me that there wasn't enough damage to qualify. Impossible to see any damage at all on the roof, from the ground, and even looking at the shingles, no obvious damage as in holes, dents, or cracks.

At the least, I had expected to pay for a prorated portion of the damage, based on the age. As it turns out, I'll have anew roof, which, when we sell, should add substantial value.

So... if they raise my rates by a few hundred dollars a year, there'll be no quarrel. Am I satisfied with my insurance company? We've had them since 1978, and have been forever satisfied.

 

[athena53]

I'm VERY wary of guys who come around knocking on doors or putting up signs ("Free Roof! *Must have insurance" ) after a storm. Although you went through proper channels with the insurance company I hope you researched the contractor.