Homeowners insurance question(s) (1 Viewer)

[Bayhawks]

In the process of buying a new (larger) house, to account for my wife being pregnant with our second set of twins.

Our current insurance provider quoted us a rate that is higher than our current rate (which I expected, because the new house is bigger & newer, AND we had an insurance claim 2 years ago after a hail storm).

I've been shopping around, to try to see if I can find a better rate. My questions are:

Is there a company that "typically" offers the best rate?

What company seems to be the best blend of price, coverage, customer service, etc?

If I get a lower rate quoted, how likely is it that my current provider would match the lower quoted rate?

Thanks in advance for any advice, tips, or information.

 

[Buckna]

Can't offer too much info, but after 1 year in my house, my much cheaper policy with a less well-known company got a huge increase for renewal. Granted I had a breakin in my first 3 months and had to file a claim, but from what other people I know have told me it's not uncommon to see some outfits quote you something much lower for the first year and then raise it on you since many people find it a pain to shop around and switch.

I got quotes last year from the big boys like State Farm, etc. but they weren't much different from what my new increase is now. Nearly all of the big outifts wanted to do a package with my auto for an additional discount but none of the quotes I got that way were worth it. Keeping my auto seperate was way cheaper.

 

[Jaysus]

In the process of buying a new (larger) house, to account for my wife being pregnant with our second set of twins.

ooof

 

[oso diablo]

My questions are:

1. Is there a company that "typically" offers the best rate?

2. What company seems to be the best blend of price, coverage, customer service, etc?

3. If I get a lower rate quoted, how likely is it that my current provider would match the lower quoted rate?

Thanks in advance for any advice, tips, or information.

1. No. Insurance pricing varies quite a bit from risk to risk.

2. Depends greatly on where you live. The big boys are big for a reason, though.

3. Almost zero, unless they start messing with your coverage levels (liability limits, value of home, deductibles)

 

[Bayhawks]

My questions are:

1. Is there a company that "typically" offers the best rate?

2. What company seems to be the best blend of price, coverage, customer service, etc?

3. If I get a lower rate quoted, how likely is it that my current provider would match the lower quoted rate?

Thanks in advance for any advice, tips, or information.

1. No. Insurance pricing varies quite a bit from risk to risk.

2. Depends greatly on where you live. The big boys are big for a reason, though.

3. Almost zero, unless they start messing with your coverage levels (liability limits, value of home, deductibles)

Thanks for the replies.

I just got a quote from a Nationwide agent that was substantially lower than my current provider gave me. ($300/year lower) It also has a lower auto insurance rate, as well.

Is Nationwide a "good" insurance company? I've never used them before, but I've obviously seen their commercials and heard their jingles.

 

[hooter311]

Call an independent agency and they will be able to quote a dozen companies or so.

Usually the discount is enough that having your home and auto insurance through one company makes the most sense.

 

[hooter311]

Also, nobody is going to "match" a rate. Do yourself a favor and make sure you are getting the best deal. The prices all include an agent commission, even if you are buying online, doesn't make sense to not use an independent agent.

 

[Johnny Rock]

Also, nobody is going to "match" a rate. Do yourself a favor and make sure you are getting the best deal. The prices all include an agent commission, even if you are buying online, doesn't make sense to not use an independent agent.

...unless comparing independent agent quotes to another company apples to apples results in a better deal. A good agent will work the discounts hard. Having all your property with one company should result in savings over multiple companies. Last time I switched I told them all straight out that I didn't want a lowball rate that gets jacked in year two. Find a good agent with a good company (or companies) and stick with them. Probably better off.

 

[needanap]

We have Nationwide and had a plumbing leak and they were awesome. Discovered the leak on Christmas Eve. Plumber came out on Christmas to stop leak and then the next day to reroute the pipe rather than tear up the bathroom floor. Plumber had to cut a 2x2 hole in the house and rerouted the pipes in the garage.

Adjuster came out two days letter. Nationwide does not typically pay for the repiping, but since the repiping was so much cheaper than tearing up the foundation and floor they paid for it. They also paid for fixing the 2x2 hole in the wall, painting from corner to corner, and an additional 10% to take care of the contractors profit margin.

First time ever had to use the home insurance and Nationwide was awesome.

 

[Osaurus]

Call an independent agency and they will be able to quote a dozen companies or so. Usually the discount is enough that having your home and auto insurance through one company makes the most sense.

I live in Florida so naturally I'm screwed as far as insurance rates. I went through AAA and got several quotes. I got a pretty good rate and it was nice to have someone else do all the leg work. Also got my auto insurance through them and easily save about $300 year.

 

[Phil Elliott]

Call an independent agency and they will be able to quote a dozen companies or so. Usually the discount is enough that having your home and auto insurance through one company makes the most sense.

I live in Florida so naturally I'm screwed as far as insurance rates. I went through AAA and got several quotes. I got a pretty good rate and it was nice to have someone else do all the leg work. Also got my auto insurance through them and easily save about $300 year.

Independent agent will represent many different companies and work for the best quote for you.

 

[Wooderson]

Getting quotes for home insurance right now.

What is the general feeling on deductible amount?

 

[Conkie]

Getting quotes for home insurance right now.

What is the general feeling on deductible amount?

$1000 should get you the right balance of affordability and risk. If you can't afford a $1000 repair, you shouldn't own. You also want to be leary of reporting smaller losses as one too many can result in a spike in rates or cancellation. In other words, only use it for the big stuff.

 

[Wooderson]

Getting quotes for home insurance right now.

What is the general feeling on deductible amount?

$1000 should get you the right balance of affordability and risk. If you can't afford a $1000 repair, you shouldn't own. You also want to be leary of reporting smaller losses as one too many can result in a spike in rates or cancellation. In other words, only use it for the big stuff.

Thanks

I think I'm going 1500 or 2000 after lookin into it.

1. I can fix some things myself

2. Like you said file a claim rates could go up. I have never filed a claim.

3. We can afford some out of pocket expense if something comes up.

 

[Wooderson]

Now looking at going 2500 or even 5000

 

[Otis]

Now looking at going 2500 or even 5000

This is what I'm thinking too. Shopping for homeowners insurance right now on a much bigger house, and holy crap is it expensive. I don't expect to use insurance except for a disaster scenario, so I'm thinking a 5k deductible is a decent idea if it drives cost down significantly.

Anyone have any other tips for a guy shopping for insurance and whose jaw is dropping at the prices? Thx.

 

[facook]

Now looking at going 2500 or even 5000

This is what I'm thinking too. Shopping for homeowners insurance right now on a much bigger house, and holy crap is it expensive. I don't expect to use insurance except for a disaster scenario, so I'm thinking a 5k deductible is a decent idea if it drives cost down significantly.

Anyone have any other tips for a guy shopping for insurance and whose jaw is dropping at the prices? Thx.

I'm an agent for one of the "big boys" in the industry. Make sure you check with your mortgage company (if you have a mortgage) to make sure your deductible meets their maximum allowed. They often will have a $1000 max (SOMETIMES $2000). Independent brokers can be great and find you the best deal if you work with a good one. They can also steer you toward the company that pays them the highest commission if you don't find a good one. Whether you work with a broker or a captive agent, you're better off to find a company and agent you have chemistry with and stick with them long-term. Rates go up and down, but having an agent on your side will always pay off if he/she is any good.

Also highly recommend bundling policies if possible. High majority of the time you'll save money on both home/auto by doing so.

 

[TLEF316]

There are several carriers that specialize in high end homes and individuals with high net worth. I work for one of them (on the commercial side though).

Its more expensive, but based on what I know of the policy (in comparison to a generic policy from one of the mainstream companies) its worth the money. I hear the stories about the kinds of claims we pay. Ridiculous stuff that would never be covered on a regular policy from the cheaper companies.

 

[Otis]

Now looking at going 2500 or even 5000

This is what I'm thinking too. Shopping for homeowners insurance right now on a much bigger house, and holy crap is it expensive. I don't expect to use insurance except for a disaster scenario, so I'm thinking a 5k deductible is a decent idea if it drives cost down significantly.

Anyone have any other tips for a guy shopping for insurance and whose jaw is dropping at the prices? Thx.

I'm an agent for one of the "big boys" in the industry. Make sure you check with your mortgage company (if you have a mortgage) to make sure your deductible meets their maximum allowed. They often will have a $1000 max (SOMETIMES $2000). Independent brokers can be great and find you the best deal if you work with a good one. They can also steer you toward the company that pays them the highest commission if you don't find a good one. Whether you work with a broker or a captive agent, you're better off to find a company and agent you have chemistry with and stick with them long-term. Rates go up and down, but having an agent on your side will always pay off if he/she is any good.

Also highly recommend bundling policies if possible. High majority of the time you'll save money on both home/auto by doing so.

Thanks helpful.

A local agent gave me a few quotes and is recommending the one that is twice the price of the lowest one. I don't need fancy insurance. I need something so that if it blows away in a twister I won't be financially ruined.

 

[Henry Ford]

Now looking at going 2500 or even 5000

This is what I'm thinking too. Shopping for homeowners insurance right now on a much bigger house, and holy crap is it expensive. I don't expect to use insurance except for a disaster scenario, so I'm thinking a 5k deductible is a decent idea if it drives cost down significantly.

Anyone have any other tips for a guy shopping for insurance and whose jaw is dropping at the prices? Thx.

I'm an agent for one of the "big boys" in the industry. Make sure you check with your mortgage company (if you have a mortgage) to make sure your deductible meets their maximum allowed. They often will have a $1000 max (SOMETIMES $2000). Independent brokers can be great and find you the best deal if you work with a good one. They can also steer you toward the company that pays them the highest commission if you don't find a good one. Whether you work with a broker or a captive agent, you're better off to find a company and agent you have chemistry with and stick with them long-term. Rates go up and down, but having an agent on your side will always pay off if he/she is any good.

Also highly recommend bundling policies if possible. High majority of the time you'll save money on both home/auto by doing so.

Thanks helpful.

A local agent gave me a few quotes and is recommending the one that is twice the price of the lowest one. I don't need fancy insurance. I need something so that if it blows away in a twister I won't be financially ruined.

Sometimes the cheapest insurance is the one most likely to file bankruptcy in the event of an actual huge disaster.

 

[King of the Jungle]

Bundling is key. Outside of home and auto many carriers will also offer discounts if you buy a small life policy or umbrella protection (often overlooked and something everyone should consider given the cost).

 

[James Daulton]

I've use Erie for both auto and home and recall finding them much cheaper when were first looking. They haven't really screwed us on increases either.

 

[Otis]

The cheap option he gave me so far is Adirondack. Never heard of it but it's nearly half the price of Travelers or Chubb.

 

[FBG26]

The cheap option he gave me so far is Adirondack. Never heard of it but it's nearly half the price of Travelers or Chubb.

Want a company that will be around when the next hurricane rolls through Long Island? Stick to one of the last two. Chubb costs $$ but I've heard good things.

 

[TLEF316]

The cheap option he gave me so far is Adirondack. Never heard of it but it's nearly half the price of Travelers or Chubb.

If you just want the cheapest option, I'm not sure why you asked.

As someone who deals with agents on a daily basis, let me tell you one thing....if a guy is recommending the more expensive policy, its probably because he knows what he's talking about. 95% of agents just recommend the cheaper policy because its the easier sell. Personal lines is all about volume. The commission on your policy isn't going to make or break this guy's year. He's recommending Chubb and Travelers because its the better policy and he knows they'll pay their claims. I've worked for both companies and seen how the claims people work. Its worth the money for someone like you. (someone who has stuff to lose).

IMO, you're past the point of your life where you should be settling for the cheap insurance policy. Get the higher deductible if you want to, but I wouldn't skimp on the contract. Hell, you're a lawyer. Read the contracts. The difference is pretty clear (on certain items) once you dig into it.

 

[TLEF316]

Oh yeah...one more thought...

When you're comparing policies, everyone is going to be pretty much the same when it comes to fire and wind. Water perils are where you're going to see the difference. Check to see what kind of coverage you have if you're sump pump fails. The expensive companies pay. The cheaper ones generally dont.

I'd also look at valuation. A cheaper company may under value your home. The companies that specialize in high end home owners insurance will get that valuation correct (or much closer to correct). In the event of a total loss, this obviously is a big deal. I see it on the commercial side all the time. Cheaper companies will just go with whatever valuation the insured wants. That's the limit on their policy, and in the event of a fire, that's all they're getting. I just lost a commercial deal yesterday because another company valued the building at 70% of what it would really cost to rebuild. (using an industry standard 3rd party valuation program. Not my opinion. Every company uses it) Saved the insured like $10K a year, but they'll be out MILLIONS if anything ever happens.

 

[Otis]

On his high end policy he's quoting 2.4MM to rebuild a home that is less than 5k square feet. I don't care if you live on the moon, that's absurd even in my expensive local market.

I called other companies independently and they are estimating a rebuild at 1.2 to 1.4.

It's that delta that is driving his prices out of whack.

I'm looking at doing this myself. Got preliminary quotes fen state Farm and Amica that are way less. Going that route.

I also have no problem going to a 5k deductible. I've never used my insurance and don't expect to except for massive or total loss.

 

[TLEF316]

On his high end policy he's quoting 2.4MM to rebuild a home that is less than 5k square feet. I don't care if you live on the moon, that's absurd even in my expensive local market.

I called other companies independently and they are estimating a rebuild at 1.2 to 1.4.

It's that delta that is driving his prices out of whack.

I'm looking at doing this myself. Got preliminary quotes fen state Farm and Amica that are way less. Going that route.

I also have no problem going to a 5k deductible. I've never used my insurance and don't expect to except for massive or total loss.

Again, I see it all the time on the commercial side. The cheaper companies undervalue property. Its not my opinion. Its a fact. Also, if you decide to cut out the middle man and go direct, you have nobody to go back to if something happens. If an agent tells you your home is worth 2 Million and it ends up costing 2.5 to replace, you can go after his E&O insurance for the difference. (he's a paid professional. He should have known better) If you go direct and something happens, you're #### out of luck.

If your biggest concern is not being out of pocket on a catastrophic loss, you really shouldn't be skimping on valuation. Chubb certainly does go overboard at times (my mom has them and had the same complaint) but there's a reason why most insurance agents with nice homes have them insured with Chubb.

If nothing else, please read the portions of the contracts dealing with water perils. There will be a difference.