Insurance in the Bush (living, rich, homeowner)

[MissingAll4Seasons]

Glitch - yeah that old "bait and switch" game! I can't figure out who came up with it first - the insurance companies or the utility companies! I've been lucky with USAA property insurance so far, but we did get dinged on the auto insurance even though the other guy was found to be at fault and had to pay for the repairs -- the claim was all that mattered, not whether we were at fault or they had to pay out. INSANE!

Like flood insurance near a river, earthquake insurance in a seismic zone is separate and normally twice as expensive. Really not worth it in the long run, especially in a self-build with no mortgage. By the time you factor in the exorbitant premiums and the high deductible, we could easily afford to rebuild the house out of pocket in the event of either flood or earthquake. Heck, even fire under a normal policy. Comprehensive just doesn't make sense in our circumstance... maybe I should just try to find someone who will provide liability insurance at reasonable rates (unless "at your own risk" absolves the owner of liability in Alaska). Personal injury would be handy in the event of natural disaster or structural failure, but it's near impossible to get property insurance to cover that... they expect you to have health insurance. grrrrrrrr

[FloridaKash]

Might want to try Alaska USA Federal Credit Union. They have an insurance brokerage department that may be able to assist you. The Big companies like State Farm, Allstate, etc. probably won;t write this type of risk as they are unfamiliar with it.

[arctichomesteader]

I hate insurance companies. They always find ways to scam you or charge you more.

[rotorhead]

I've always had very good luck with USAA...up till now. In fact, they initially declined to insure our new house at all until I worked my way up through the ranks of "supervisors" and "managers" and griped to anyone and everyone that the new system was just plain wrong. Now they're sending some sort of "brush fire mitigation expert" in for a survey on the place.

I'll go out on a pretty sturdy limb and say that their "expert's" fee will easily be more than the annual premium on the house. I'm also guessing that he'll find something "wrong" with the place so that they can just go back to using their easy, conveinent computer system instead of actually having to resort to common sense and calling the fire department or using actual claims data.

Actually, when I think back on it it's not the first time USAA has hosed me on homeowners insurance. They declined ALL insurance in Alaska right after the Denali quake, and that one hit me one day before closing. After it was apparent that the quake damage was far from the major cities, they opened up the Alaska market again and started issuing new policies. It sure didn't help me at the time though, I had to scramble for coverage with another company.

I've been with USAA for 23 years now, and insured all my past houses and vehicles with them. It seems like this is a very shabby way to treat their shareholders and customers, red-flagging policies just because they happen to be located in Alaska.

[MissingAll4Seasons]

I've been pretty happy with USAA for the last 20-odd years as well; but recently they aren't so wonderful anymore. Their rates are near-comparable to market, when it used to be nearly half. Plus, we're thinking about buying a used UHaul truck, when I called about insuring it they said it was a work truck and wasn't covered. What?!?!?! I'm not going into business with this truck, it's for personal use only to haul stuff from town to the homestead once or twice a year. Whatever! They don't want to insure my pickup either since we don't/won't have a proper driveway and our main commuting road is "unpaved and unmaintained"... yeah, the Elliott isn't perfect, but it's not THAT bad!

[RMD3819]

Originally Posted by Glitch

State Farm and Allstate like to sign people up at a reasonable rate, then the following year increase the premiums by 25%+ even if you file no claim. Magoon is right about the dogs. If you own an Akita, German Shepard, Pitbull, Husky (Alaskan or Siberian), or a Mastiff, you better not tell your insurance carrier or they will increase your rates.

As far as earthquake insurance is concerned, expect to pay double the full coverage premiums and a very high deductable (15% or more of the value of the home). So if you are paying $750/year for full comprehensive home insurance, add on another $750/year for earthquake insurance and you have to cough up the first 15% of your home's value before you see a penny of that insurance money.

Please pardon the interruption....

Just to throw some perspective on these numbers, I live in South Florida and my home insurance is $3641 a year. The hurricane deductible is $7,300.00!

[MissingAll4Seasons]

So in two years, you pay the "deductible" in premiums and then have to pay it again if something should happen... that's such a scam.

[RMD3819]

Originally Posted by MissingAll4Seasons

So in two years, you pay the "deductible" in premiums and then have to pay it again if something should happen... that's such a scam.

Yup.

And I get a 44% discount because I have hurricane shutters.

In FL you can have a deductible of $500, 2%, 5%, or 10% of the dwelling coverage limit of your home. If I chose 10% my deductible would be $36,500.00!

Hurricane coverage only pays for wind damage. Water damage is not included-that is what flood insurance is for.

[Glitch]

Originally Posted by RMD3819

Please pardon the interruption....

Just to throw some perspective on these numbers, I live in South Florida and my home insurance is $3641 a year. The hurricane deductible is $7,300.00!

That is indeed a high premium, but a very low deductible. The typical home around here is about $250,000. Which means you would have to cough up $37,500 first before you see a penny from State Farm.

[Classic Satch]

My wife always tells me I have a perverted mind but the first thought that popped into my head after reading the title of this thread was "Trojans".