I got our homeowners insurance renewal bill for next year and the premium was up 30% despite no claims, no change in coverage, and no renovations. It turns out Progressive Home Advantage increased our limit from $200k (what the house was purchased for and what its currently worth) to $300k. $100k increase in a single year - would be great news if they were willing to buy it for that!
So I called them and they said they switched software that was being used to calculate replacement cost, the new software provides the correct estimate. I pointed out that a similar house down the street is on the market for $200k...why would they spend $300k to rebuild our house? They said if your house burns down they have to pay demolition costs... $100k of demolition costs? I checked our appraisal from 2 years ago and the replacement cost estimate was $100/sq foot, but our insurer thinks it should be $150/sq foot. Maybe there was some inflation, but not 50% inflation in this economy! Last time I checked, real estate construction services were not in such high demand...
They wouldn't let me reduce the coverage, so I filed a complaint with the state insurance regulator - let them explain their bogus estimates to them. If they don't get some satisfaction we'll switch insurers.
So I called them and they said they switched software that was being used to calculate replacement cost, the new software provides the correct estimate. I pointed out that a similar house down the street is on the market for $200k...why would they spend $300k to rebuild our house? They said if your house burns down they have to pay demolition costs... $100k of demolition costs? I checked our appraisal from 2 years ago and the replacement cost estimate was $100/sq foot, but our insurer thinks it should be $150/sq foot. Maybe there was some inflation, but not 50% inflation in this economy! Last time I checked, real estate construction services were not in such high demand...
They wouldn't let me reduce the coverage, so I filed a complaint with the state insurance regulator - let them explain their bogus estimates to them. If they don't get some satisfaction we'll switch insurers.