Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
"pretty much the same"--what's different? That could make a big difference in your premiums and in your coverage.
True.
I just went over the policies - both policies cover actual replacement cost of the house/structures and living expenses with the same deductibles - the (irrelevant) base amount for the new policy is about 20% less ($320,000-ish rather than $400,000-ish); both of those are well above the tax-appraised value of the structures. Both cover liability similarly ($300,000 + $1000 (old) or $300,000 + $3000 (new)).
A major difference between old and new is the personal property coverage - $300,000-ish for old, $160,000-ish for new. BOTH of those seem very high for what's actually in my house - I would probably estimate a few thousand dollars per room on average (at most!) so even $100,000 seems somewhat high; this is an off-the-cuff estimate, of course, and doesn't necessarily reflect reality for all rooms...but I'd bet it's close...
The old policy has discounts applied of $700-ish (that is, the cost is actually $2500+ but they took off $700-ish), the new polciy lists no discounts but we do have car insurance through the same parent company so maybe there's an unmentioned discount for that).
So there ya have it - one policy is $1800-ish, the other $500-ish - with the end coverage result essentially the same for my particular situation.
That is to say - check your insurance - car and house - and get those free quotes from other companies - it may turn out to be well worth the "trouble".
Addendum - I'm still curious about the large difference in pricing - perhaps due to the estimated value of the house over the years? The property has varied in value from about $250,000-ish to $600,000-ish to $500,000-ish now - perhaps the old insurance company set their rates at the high and never lowered them? Don't know...
Last edited by sullyguy; 05-04-2013 at 07:13 AM..
Reason: added addendum
I just went over the policies - both policies cover actual replacement cost of the house/structures and living expenses with the same deductibles - the (irrelevant) base amount for the new policy is about 20% less ($320,000-ish rather than $400,000-ish); both of those are well above the tax-appraised value of the structures. Both cover liability similarly ($300,000 + $1000 (old) or $300,000 + $3000 (new)).
A major difference between old and new is the personal property coverage - $300,000-ish for old, $160,000-ish for new. BOTH of those seem very high for what's actually in my house - I would probably estimate a few thousand dollars per room on average (at most!) so even $100,000 seems somewhat high; this is an off-the-cuff estimate, of course, and doesn't necessarily reflect reality for all rooms...but I'd bet it's close...
The old policy has discounts applied of $700-ish (that is, the cost is actually $2500+ but they took off $700-ish), the new polciy lists no discounts but we do have car insurance through the same parent company so maybe there's an unmentioned discount for that).
So there ya have it - one policy is $1800-ish, the other $500-ish - with the end coverage result essentially the same for my particular situation.
That is to say - check your insurance - car and house - and get those free quotes from other companies - it may turn out to be well worth the "trouble".
Addendum - I'm still curious about the large difference in pricing - perhaps due to the estimated value of the house over the years? The property has varied in value from about $250,000-ish to $600,000-ish to $500,000-ish now - perhaps the old insurance company set their rates at the high and never lowered them? Don't know...
Well--you cut costs on the 2 most expensive features on a policy--did you get an apples to apples quote--including the auto discount from your previous company? Your tax assessed value has nothing to do with what you should insure your house for--it's all about how much it costs to replace. A lot of people found that they were grossly underinsured because they went by their mortgage or tax values. Just be careful there. Personal property is tricky--keep in mind that it covers your stuff and a "few thousand" a room is VERY low. You may have paid $500 for your couch but can you still get it for that price today if your house burned to the ground? Your biggest savings came from having your home and auto with the same company. Also, many companies will give a huge discount for new policies only to find in 2 years you are playing more than you were with the original policy. Also, every company looks at your credit history differently so that could be part of the difference.
It's still a good practice to shop around every 5 years or so, but switching too much can hurt you as well because a lot of companies give huge discounts for longevity too.
Well--you cut costs on the 2 most expensive features on a policy--did you get an apples to apples quote...it's all about how much it costs to replace.
As noted, replacement cost is covered by both.
Quote:
Personal property is tricky--keep in mind that it covers your stuff and a "few thousand" a room is VERY low. You may have paid $500 for your couch but can you still get it for that price today if your house burned to the ground?
I believe "a few thousand per room" is WAY more than the value in each room on average, frankly, and that DOES take into account a typical room - for example, in our "library" we have 4 tall bookshelves, three guitars and a synthesizer, a stereo and speakers, 4 sitting things (rattan chairs/love seats) and...that's about it. Add it all up (excludes books - but those are priceless...mostly my ancient college textbooks!) and you're pushing "a few thousand". And similarly for all the other rooms. So I think that estimate is pretty solid (though admittedly not thoroughly THOROUGHLY thought out other than in these posts).
Quote:
It's still a good practice to shop around every 5 years or so, but switching too much can hurt you as well because a lot of companies give huge discounts for longevity too.
For those who don't know. Never ever file a claim on your homeowners policy unless it's a HUGE lost. If you file a small claim, I guaranteed that you will pay dearly for it for a very long time so don't do it.
I believe "a few thousand per room" is WAY more than the value in each room on average, frankly, and that DOES take into account a typical room - for example, in our "library" we have 4 tall bookshelves, three guitars and a synthesizer, a stereo and speakers, 4 sitting things (rattan chairs/love seats) and...that's about it. Add it all up (excludes books - but those are priceless...mostly my ancient college textbooks!) and you're pushing "a few thousand". And similarly for all the other rooms. So I think that estimate is pretty solid (though admittedly not thoroughly THOROUGHLY thought out other than in these posts).
Replacement cost only goes up to the limits of your policy though. If you have $100,000 for personal property coverage and have $200,000 in "stuff", you still only get the $100,000.
4 tall book shelves--that's about $500 if they are cheep ones from Walmart, 3 guitars--$700??, rattan furniture for a couple chairs and a love seat is $1000 easy. It's your house, you know whats in it but most people are underinsured, not over insured.
4 tall book shelves--that's about $500 if they are cheep ones from Walmart, 3 guitars--$700??, rattan furniture for a couple chairs and a love seat is $1000 easy
I believe "a few thousand per room" is WAY more than the value in each room on average, frankly, and that DOES take into account a typical room - for example, in our "library" we have 4 tall bookshelves, three guitars and a synthesizer, a stereo and speakers, 4 sitting things (rattan chairs/love seats) and...that's about it. Add it all up (excludes books - but those are priceless...mostly my ancient college textbooks!) and you're pushing "a few thousand". And similarly for all the other rooms. So I think that estimate is pretty solid (though admittedly not thoroughly THOROUGHLY thought out other than in these posts).
I do flood insurance adjusting... and believe me... you believe wrong
For personal property coverage the key is do you have replacement cost or ACV coverage. You are right in that it is rare people get close to even 50% of dwelling coverage for personal property in a total loss, but if it's covered at ACV the payout usually upsets the insured.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
