Home Owners Ins.

[73ss454]

We are living in Florida and each year about this time my HO's ins bill comes. There are always a list of items that won't be covered under the new policy and the $300 price increase. It's like a ritual and I'm tired of it. I keep trying to raise the deductibles and I'm at the limits now. We've shopped around and it seems the ins comp's are in this together.

My question is, any of you folks taking liability only and self insuring? My broker gave me this option and said many of her clients are going in this direction.

 

[W2R]

We are living in Florida and each year about this time my HO's ins bill comes. There are always a list of items that won't be covered under the new policy and the $300 price increase. It's like a ritual and I'm tired of it. I keep trying to raise the deductibles and I'm at the limits now. We've shopped around and it seems the ins comp's are in this together.

My question is, any of you folks taking liability only and self insuring? My broker gave me this option and said many of her clients are going in this direction.

We who live in states that could be hit by hurricanes have a pretty rough time with homeowners' insurance, I agree.

I raised my deductible, so I insure myself for smaller losses. That makes sense to me. However, I still carry homeowners' insurance (including wind and hail) and flood insurance, so in the event of a catastrophe I am covered..

 

[Packman]

Do you mind posting how much the premiums are on the value of your property in Florida? I have considered a move to FL in the next few years, but I've seen so many people that say it isn't as cheap as one would expect, with no income tax.

 

[73ss454]

I have the highest deductibles, 5% hurricane, a monitored alarm system and I have the value at $305 with the ins company. The premium for this year is just over 1800 for the year.

 

[pb4uski]

Or what the property damage premiums are as a % of your estimated cost to rebuild less your deductible. This would be comparing annual premium to the net amount at risk.

However the thing to keep in mind is that there are numerous outcomes between no loss and a full loss.

For my auto coverage, if the collision coverage becomes 10% of the car's value less the deductible, then I self-insure. Not sure if I would be so bold as to do it for a house though (or a car that was valued as much as my house).

 

[pb4uski]

I have the highest deductibles, 5% hurricane, a monitored alarm system and I have the value at $305 with the ins company. The premium for this year is just over 1800 for the year.

So your premium is about 0.6% of the value of the property? While it is a lot more than what we pay in my area, the risk of loss is obviously much greater.

Is the $1,800 premium both property and liability? If so, how much is the property portion? I assume that you would not want to drop your liability coverage.

 

[Texas Proud]

We who live in states that could be hit by hurricanes have a pretty rough time with homeowners' insurance, I agree.

I raised my deductible, so I insure myself for smaller losses. That makes sense to me. However, I still carry homeowners' insurance (including wind and hail) and flood insurance, so in the event of a catastrophe I am covered..

I have the highest deductibles, 5% hurricane, a monitored alarm system and I have the value at $305 with the ins company. The premium for this year is just over 1800 for the year.

My house is worth less and my premium is about the same or more than yours...


No, I am not willing to insure a house on my own... all it takes is one large storm to wipe out a whole lifetime of premiums...

PS... how much would you actually save I would bet that the liability costs some money...

 

[pb4uski]

Here is one way to frame the question.

Let's say you owned a exotic sports car worth $150k and your collision insurance for a year was $900. Would you self insure?

 

[73ss454]

So your premium is about 0.6% of the value of the property? While it is a lot more than what we pay in my area, the risk of loss is obviously much greater.

Is the $1,800 premium both property and liability? If so, how much is the property portion? I assume that you would not want to drop your liability coverage.

My broker said she would call me on Monday with some options but did say that the liability would be about $400 a year.

 

[Moemg]

I have considered self insuring . The real value in my property is the lot . I have two and a half lots on Sarasota bay . My SOs son is an insurance broker so he really shops around for us . Our last bill was $1400 . The only thing that saves us is that we are elevated with breakaway walls on the first floor .Of course we are with Citizen's any other insurance would be double that . Occasionally another insurance pulls us out of Citizen's for a year and then drops us with the excuse we did not realize you were on the water . What did they think it was a gigantic pool ?

 

[pb4uski]

I have considered self insuring . The real value in my property is the lot . I have two and a half lots on Sarasota bay . My SOs son is an insurance broker so he really shops around for us . Our last bill was $1400 . The only thing that saves us is that we are elevated with breakaway walls on the first floor .Of course we are with Citizen's any other insurance would be double that . Occasionally another insurance pulls us out of Citizen's for a year and then drops us with the excuse we did not realize you were on the water . What did they think it was a gigantic pool ?

Is the $1,400 both property and liability, or just property?

If a hurricane struck and you had a total loss, how much would it cost to rebuild?

I think you need to look at the cost of property coverage only compared to the cost of rebuilding (less the deductible) in making the decision.

 

[Buckeye]

I have the highest deductibles, 5% hurricane, a monitored alarm system and I have the value at $305 with the ins company. The premium for this year is just over 1800 for the year.

Have you recently confirmed the cost to rebuild is $305k? No land value included? Just checkin'.

 

[Moemg]

Is the $1,400 both property and liability, or just property?

If a hurricane struck and you had a total loss, how much would it cost to rebuild?

I think you need to look at the cost of property coverage only compared to the cost of rebuilding (less the deductible) in making the decision.

The $1400 is property & liability with a $25,000 deductible . If a hurricane struck and the house was destroyed I would try to sell the land and move on.

 

[Live And Learn]

I have the highest deductibles, 5% hurricane, a monitored alarm system and I have the value at $305 with the ins company. The premium for this year is just over 1800 for the year.

I'd LOVE that ! Mine is double what you pay (and my house is at $250). I'm in Palm Harbor (Pinellas county). Where are you ?

OOPS - just read your deductable of 25k. Mine is 6k for a hurricane and 2k for all else. Maybe I will raise my deductable a bit if it makes that much of a difference.

 

[73ss454]

Have you recently confirmed the cost to rebuild is $305k? No land value included? Just checkin'.

I know it would cost less to rebuild but the Ins company won't come off the 305K.

 

[73ss454]

I'd LOVE that ! Mine is double what you pay (and my house is at $250). I'm in Palm Harbor (Pinellas county). Where are you ?

OOPS - just read your deductable of 25k. Mine is 6k for a hurricane and 2k for all else. Maybe I will raise my deductable a bit if it makes that much of a difference.

Brevard county.

 

[MichaelB]

We are living in Florida and each year about this time my HO's ins bill comes. There are always a list of items that won't be covered under the new policy and the $300 price increase. It's like a ritual and I'm tired of it. I keep trying to raise the deductibles and I'm at the limits now. We've shopped around and it seems the ins comp's are in this together.

My question is, any of you folks taking liability only and self insuring? My broker gave me this option and said many of her clients are going in this direction.

Self insure is not the same as don't insure. Your cost is less than 1%, which is not unreasonable for a high risk area. Your worst case is not losing the house, it is major destruction where the house it damaged beyond repair but still standing, and you need to spend another $20k out of pocket to tear it down and clean the lot to rebuild.

 

[73ss454]

The thing that gets me mad is the amount of increases the ins. comp's are allowed to charge each year. I've raised all my deductibles, signed up for monitering on my alarm system and shopped other ins comp's. Yet each year I keep getting raised $200 to $300. Not that I can't afford the $1800, I just don't feel they are entitled to these large increases each year.

 

[Live And Learn]

Agree that the increases are far outpacing normal inflation but we live in a high risk area. We could move back up north and shovel snow instead LOL

 

[FreeAtLast]

I live in S. Florida and had roof damage after hurricane Wilma. I tried to just have it fixed but the repair did not hold. I ended up putting in an insurance claim and the paid over 50k for new roof and other interior water damage.

I will continue to insure. I have storm shutters and have had them inspected which has kept the cost reasonable.

 

[jclarksnakes]

I have family in Brevard County. Talking to my brother recently he said that many insurance companies, including USAA are not writing new policies in his neighborhood. He also said that more and more people in his neighborhood were going naked on HO insurance.

 

[W2R]

I have the highest deductibles, 5% hurricane, a monitored alarm system and I have the value at $305 with the ins company. The premium for this year is just over 1800 for the year.

That's awful! Mine is $1603*, with the insured value at $126K, $6300 deductible for hurricanes (wind and hail), and $1000 deductible otherwise. The hurricane deductible is as low as allowed but the other one isn't. Taking into account that I live in New Orleans which would imply a certain level of risk, I am surprised at how much you must pay.

I also carry flood insurance for an additional $638 so the total is $2241. Flood insurance is a pretty good deal and something I don't want to go without in my location.

AFAIK insurance companies have not written new policies for wind and hail here since before Katrina (2005). I'm grandfathered in, but my dear friend F. is not and he has to get separate state sponsored insurance for wind and hail. Consequently he pays almost twice what I pay.


* This cost also reflects a 15% discount due to keeping my car insurance with them, and a 10% discount for being claim free, a 5% discount due to the age of my home, and some other discounts.

 

[Buckeye]

The thing that gets me mad is the amount of increases the ins. comp's are allowed to charge each year. I've raised all my deductibles, signed up for monitering on my alarm system and shopped other ins comp's. Yet each year I keep getting raised $200 to $300. Not that I can't afford the $1800, I just don't feel they are entitled to these large increases each year.

This issue is one of the issues that keeps us from buying in FL but since USAA still won't write in Florida because they can't charge the price dictated by the risk, I assume the rates are actually still too low relative to the risk.

The flip side of the rates being too high is that they are too low to appropriately cover the risk and things get really ugly when there is a large storm with lots of damage and the insurance companies don't have the proper reserves to cover all the claims.

 

[Texas Proud]

I know it would cost less to rebuild but the Ins company won't come off the 305K.

The thing is not only the cost to rebuild, but also to rebuild when a lot of other people want to rebuild (higher cost)...

Plus, you have to pay to actually remove the old house unless you were wiped clean...

One option you can do is reduce the amount from 305 to say 250 or so... check how much that would cost... you would be self insuring on only a percent of the property....

 

[JOHNNIE36]

I just purchased a new policy effective 12-1-11 through Tower Hill. Total premium is $1770. Dwelling insured for $255K and $300K liability. Not in a flood area. Hurricane deductible is $5090 (2%), $2500 on all other perils. No sinkhole coverage. Dwelling and personal property is covered for replacement cost. The policy premium was reduced through credits for going with a higher deductible, windstorm mitigation devices and sinkhole exclusion (total credit of $990). The insurance agency talked me into getting a wind mitigation survey which cost me $100 but got me a credit of $278 which is good every year for five years.

You really have to shop around for the best rate. This policy was $500 less than my previous insurer was going to charge for the renewal policy. Got to have a good credit rating. The new insurange agency checked it right there in the office before they would even discuss writing the policy. I was also told that insurance companies change every month whether or not they will write a policy in your area. You just have to keep shopping.

Editing to add that of the total premium, $593 is for hurricane and $1177 is for non-hurricane premium.