Home owner insurance differences

[SmartMoney]

I left out one other fact of my story. I had Nationwide for over 20 years, multi-policies. After my divorce, i went with Liberty. I had been with Liberty with an auto & renter policy holder from 2007 to homeowner and auto from 2013, until my claim in 2017. I also paid top dollar for Nationwide and Liberty has felt more reasonable. But i don't think I would swich due to premium increase, anyway.

[NC211]

I have a fundamental problem with USAA. I was with them my entire life until this house two years ago. They had my house, cars, banking. They have just two car loans now. Here’s why.

This house needed to be inspected for the policy. That inspection set the replacement value of the home which is where the policy is set against. USAA has both a residential and a commercial real estate lending, investing, development department. Heck my last house was built by a joint venture between USAA and DR Horton just 10 miles away less than 4 years apart at the time this happened. They know real estate.

They concluded that my replacement value was well in excess of the actual retail value of the home if it were in turn key condition. Heck, their replacement value exceeded not one but two separate appraisals over an 18 month period. Their replacement value exceeded what I paid for the house by over $200,000. Their replacement value on a per square foot basis would’ve put my home at the top of the food chain for this neighborhood, which I can assure it is not.

I argued with them. I questioned the inspector. I even called a friend of mine in their real estate department to point out the flaw. All I got was canned answers and no movement. I even presented to them what I paid for my last house which was one of theirs to prove my point. Nobody cared.

For just the cost to insure this house with USAA, I have all my cars, the house+20%, and a general $1,000,000 umbrella policy from State Farm.

That’s business. I get it. But what ticked me off is that they’re also doing this to our nation’s finest and loved, our veterans. I’m fortunate in my finances, but a E4 with two kids may not be as comfortable and doesn’t realize he is over paying by a lot. That, I can’t stand behind.

Yes, USAA has a stellar reputation for being there when needed. But I strongly doubt State Farm is that much worse for being the big dog they are.

[nkull]

As much as I love USAA and would love to stay with them, my auto policy is moving at the end of this month when I close on my house... USAAs home owner rate was going to be over 2x what I will be paying, and the new company is offering me the same auto coverage for half the price as well...

With both home and auto polices the difference between USAA and where I am going is $312.50/mo vs. $140/mo ...

If it was not so drastic I would stay with USAA all day long because I've always been treated right by them, but this is too much.

My bottom line, get a quote from USAA. If they offer you a rate that's competitive I'd say go with them, they are awesome. If it looks like my results, that's a different story.

[NC211]

Yep, sounds about the same tactic as they did to me. I’m willing to bet that if ask them what number they are basing your home policy on, it’ll likely be very close to what you are paying for it in what I assume is an arms length fair market transaction. I don’t get it. How can they build the house for $105 PSF, sell it for $150 PSF, and then turn around and say it’ll cost $155 to rebuild it if something were to happen to it. It’s completely unethical and infuriated me. So much so that when I see a commercial real estate deal come across my desk for lending consideration that involves them, I take a pass on it, even though I know they are smart and safe investors in that arena (and cheap as bums too)..

[KayAnn246]

I guess it depends on the state because I've had my house in NC and MI with USAA home insurance since 2005. I've never had to get an inspection from them for a policy or upon renewal. While rates with USAA continue to increase, I'm staying put with them.

I was in the process of switching to State Farm or All State for lower rates but one of my neighbor's house burned to the ground. He has the worst experience with the run around from State Farm. They have been giving him excuses such as one agent retired, another claims adjustor relocated etc for 8 months. He is stuck in an apartment for 8 months dealing with them because they are slow and incompetent in processing his claim so his house can be rebuilt.

[davdaven]

I am fascinated by all these bundled savings everyone is writing about. Every time I've gone through the quote process, first with auto/renter's and now auto/homeowner's, it's always been much cheaper for me to keep my insurance with separate companies. The only thing I've gotten cheaper by bundling is when I added a scooter to my auto policy. I started out AAA/State Farm, then Geico/State Farm, then Geico/Lemonade, and now Geico/Hippo (almost went with Geico/Amica but Hippo has better coverage). I wonder what magic thing I'm missing to get these "discounts"!