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Re: Insurance Aha!
Old 01-30-2007, 09:49 AM   #21
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Re: Insurance Aha!

Quote:
Originally Posted by clifp
I am always tempted to pay of my mortgage just so I cancel the ridiculous insurance policies.
I have a concrete house 1000' above sea-level why do I need Hurricane insurance?
I hear ya. But when the hurricane blows the coconuts through our picture windows and the horizontal rain floods the house... of course the mudslides would probably render that irrelevant.

Our next home improvement is plywood window covers-- or hurricane shutters.

Quote:
Originally Posted by Moemg
Less than $1000 in Hawaii and over $6000 in Florida for homeowners insurance .How does that make sense ? Don't we have the same risks ?
Well, Hurricane Iniki waxed Kauai in 1992 and Iwa hit in 1982 and I'm at 465' elevation. How many hurricanes has Florida had touch down in the last 25 years, and what's the state's average elevation-- about 10 feet? AFI won't even write hurricane policies in Florida, although USAA is extremely reluctant to write policies in Hawaii.

OTOH we've had two earthquakes in a little over a month.

I don't know what you're getting for $6K, but the hurricane portion of our homeowner's insurance is about $600 (I'll look up the precise number when the rest of the house wakes up) [EDIT: it's $570] with a 2% deductible. So if our house was flattened and rebuilt for about $300K then we'd be paying $6000 minimum.
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Re: Insurance Aha!
Old 01-30-2007, 09:53 AM   #22
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Re: Insurance Aha!

I've noticed posters mention "Hurricane" insurance. I've looked at Homeowners Policies and have only seen the peril "windstorm". It doesn't differentiate between straightline wind, tornado or hurricane.

Would you be talking about "Flood" insurance ? I see that is always excluded and requires a separate policy.
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Re: Insurance Aha!
Old 01-30-2007, 10:46 AM   #23
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Re: Insurance Aha!

Quote:
Originally Posted by Empty Pockets
When I hear people complain about insurance of any type I always ask.

"Then why do you even have it ?"

There's not an insurance company in the world that can "make" you buy anything.
The state can, however.
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Re: Insurance Aha!
Old 01-30-2007, 10:54 AM   #24
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Re: Insurance Aha!

Quote:
Originally Posted by Empty Pockets
I've noticed posters mention "Hurricane" insurance. I've looked at Homeowners Policies and have only seen the peril "windstorm". It doesn't differentiate between straightline wind, tornado or hurricane.
AFI's policy makes it even more complicated. First they define a "hurricane" as whatever's put out by the Central Pacific Hurricane Center (a NOAA/NWS unit in Hawaii). Then the policy includes a rider that specifically excludes hurricane coverage. Then the policy includes a second rider that specifically includes hurricane coverage. There must be a legal or underwriting reason for all the extra verbiage because there sure doesn't seem to be a logical one.

Quote:
Originally Posted by Empty Pockets
Would you be talking about "Flood" insurance ? I see that is always excluded and requires a separate policy.
No flood insurance. We're insured against exploding water pipes and sewage backups but no storm surge or overflowing creek beds...

Quote:
Originally Posted by eridanus
The state can, however.
Kinda hard to get a mortgage without insurance, too. In fact the credit union is our primary insured and we just get the leftovers.
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Re: Insurance Aha!
Old 02-16-2007, 06:56 PM   #25
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Re: Insurance Aha!

The rest of the story:

Got a letter from our credit union, the mortgagor of our residence.

AFI managed to switch our homeowner's insurance from one type of policy to the other-- no problem. But apparently AFI sent NFCU the cancellation notice of our first policy while neglecting to mention that they'd replaced it with the second. NFCU's a bit concerned, and guess who's expected to do the work to calm them down.

Looks like we'll be earning every penny we're saving.
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Re: Insurance Aha!
Old 02-16-2007, 09:51 PM   #26
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Re: Insurance Aha!

I'm familiar with it...git out yer fax machine...

You'd kind of think the CU and the insurance company could work this out between them, wouldnt ya?
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Re: Insurance Aha!
Old 02-17-2007, 12:11 AM   #27
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Re: Insurance Aha!

Quote:
Originally Posted by nwsteve

We recently downsized and moved across the state.
In the process some jewelry that we had covered
with a rider never arrived.

You let a moving company move your expensive jewelry ?

No wonder it never arrived !

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Re: Insurance Aha!
Old 02-18-2007, 12:13 PM   #28
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Re: Insurance Aha!

Well, the revelations from this forum never end! Next week I'll look into dropping our personal property insurance.

OTOH, let me describe what happened when we lost 100% of our personal property in the Oakland Firestorm of 1991 (we were away for the day when it happened, so we had only our car and the clothes on our backs):

Although we went through the formality of listing what we lost (to the best of our recollection), the adjuster essentially said "Oh, your stuff was worth more that you think, so we're just going to give you the maximum coverage amount, $160,000" ($237,000 in today's dollars).

Now, most of that stuff had been acquired through garage sales. But, when you lose absolutely everything you own, you don't necessarily have time to reacquire things in that same way. Maybe now, being retired, I could do that, but back then we had to get back to normal very quickly while continuing to work/run business, deal with rebuilding, deal with insurance, find place to live, etc.

So, instead of getting stuff at garage sales, we essentially walked through stores saying "I'll take one of those, two of those, one of those, etc." (It wasn't as fun as it sounds.)

We still spent considerably less than the 237K that we got, and a good bit of the difference went into financing my business startup costs which let me retire early.

So, the point is, in the unlikely event that you do lose everything, personal property insurance is good to have. But I always feel that insurance should only be used to protect you against a loss that you can't afford to replace, and not as a way to save money.
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