hazard insurance/home owners insurance - which company? (California, credit, loan)

[Coldjensens]

We have had good luck with State Farm, but there was an article in Old House Journal that says for older houses, Chubb has the best policy. They were the only one that would pay for restoration rather than modern construction methods.

[golfgal]

Originally Posted by darkblue

Here are the quotes received from two companies
Policy from G(have auto insurance with them)
Coverage A – Dwelling Coverage limit $322000
Coverage B – Other structures $32000
Coverage C – Personal property $225400
Coverage D – Loss of use $64400
Coverage E – Liability $300000
Coverage F – Medical Payments $2000
Deductible - $100
Hurricane Deductible - $6440
Total Annual premium $915


Policy from F(lender refered) Premium premium
Dwelling 188000 871.27 822.33
Sep structures 18800
Personal prop 141000
Loss of use 94000
Pers Liability 300000
Guest medical 1000
Sewer & Drain 250 50 50
Contents repl covered
Extended Repl covered (for 235000)

[SIZE=5]Deductibles[/SIZE]
[SIZE=5]All Perils $500 $1000[/SIZE]
[SIZE=5]Wind and Hail 1.0% 1.0%[/SIZE]
[SIZE=5]Premium $921.27 $872.33[/SIZE]
[SIZE=5]Policy fee $25 $25[/SIZE]
[SIZE=5]Total $946.27 $897.33[/SIZE]


[SIZE=5]Which one is good comparitively?[/SIZE]
[SIZE=5]In the first one, it did not have wind & hail.What does it mean. Do ineed to specifically ask them?[/SIZE]
[SIZE=5]What is Dwelling coverage. First one didnt say about Extended Repl but covers more than the sale price ( $320000)[/SIZE]
[SIZE=5]Deductible one the first one is very less. [/SIZE]

Is this for the same house???? The first one is for a house with a replacement cost of $322,000 and the other is for $188,000--you really can't compare the two policies with such vastly different coverage levels.

I would double check that the first policy has replacement cost on your personal property and extended coverage on your dwelling coverage.

Is the deductible on the first policy really $100 or is it $1000? Are you in a hurricane prone zone? The second has sewer/sump-pump coverage the first does not.

The wind and hail is typically covered on most policies, some companies have a separate deductible for those because they are pretty common claims and they tend to keep the premiums down BUT can you afford 1% of say $18,000 if you need a new roof and siding because of hail?

I would increase your liability coverage to $500,000 and your medical pay coverage to $5000.

Ask the second company to give you an EXACT quote to the first company so you can compare premiums. I am really curious how they came up with such different dwelling costs.

[golfgal]

Originally Posted by Coldjensens

We have had good luck with State Farm, but there was an article in Old House Journal that says for older houses, Chubb has the best policy. They were the only one that would pay for restoration rather than modern construction methods.

Most policies from major companies will replace what you have. If you have an older home with lath and plaster walls, they have to replace with lath and plaster walls. If you have 10" baseboards, they replace with 10" baseboards. There are going to be materials that you obviously can't replace because they are no longer available but they have to replace as close as possible BUT, keep in mind you have to have enough insurance on your house to COVER those costs too. You might have paid $100,000 for your home but to rebuild it to what you have would cost $400,000 you better have it insured for the $400,000 or they will get part way done with your first level and say, sorry money is gone, we are done.

[darkblue]

Originally Posted by golfgal

Is this for the same house???? The first one is for a house with a replacement cost of $322,000 and the other is for $188,000--you really can't compare the two policies with such vastly different coverage levels.

I would double check that the first policy has replacement cost on your personal property and extended coverage on your dwelling coverage.

Is the deductible on the first policy really $100 or is it $1000? Are you in a hurricane prone zone? The second has sewer/sump-pump coverage the first does not.

The wind and hail is typically covered on most policies, some companies have a separate deductible for those because they are pretty common claims and they tend to keep the premiums down BUT can you afford 1% of say $18,000 if you need a new roof and siding because of hail?

I would increase your liability coverage to $500,000 and your medical pay coverage to $5000.

Ask the second company to give you an EXACT quote to the first company so you can compare premiums. I am really curious how they came up with such different dwelling costs.

This is for the same house. I told to both of them the sale price is $320,000.The first policy does not say about replacement cost but the dwelling coverage is $322000 Where as with second policy, the replacement covered for $235000. Why did not the first policy did not specifically say about wind & hail.
Also do I need ask about insurance for appliances like A/C fridge,oven,microwave ,diswasher.washer and dryer

[darkblue]

BTW , It's a new home

[golfgal]

Originally Posted by darkblue

This is for the same house. I told to both of them the sale price is $320,000.The first policy does not say about replacement cost but the dwelling coverage is $322000 Where as with second policy, the replacement covered for $235000. Why did not the first policy did not specifically say about wind & hail.
Also do I need ask about insurance for appliances like A/C fridge,oven,microwave ,diswasher.washer and dryer

Anything attached to the house is covered under your dwelling coverage, including appliances, furnace, a/c unit, etc. Your coverage B or your personal property would be your clothing, furniture, pictures, etc.

With the first house I am going to ASSUME they have extended replacement on the dwelling--ASK about that. What that means is if you insure your home for the $322000 you have an additional amount above and beyond to cover increased building costs, usually in the 20% range. So your house is leveled in a tornado this summer, you have it insured for the $322K but since all of your neighbor's need their houses rebuilt, the price of labor and construction materials skyrocket--in comes your extended replacement for the additional 20% or $64,400.

With the second house, you paid $322K but they are only insuring the house for $188,000 and with extended replacment that goes to $225,600 at 20%--this policy might have a higher percentage but it still limits you to the $322000 if I am reading it right (it comes out kind of goofy on the site).

Now, keep in mind you don't insure your land so if your LOT value is say $100,000 then you could safely insure your home for $222K IF that is what it cost to build. Some states require you to insure for at least the amount of your mortgage, keep that in mind--our state does not.

Since this is a new build you should have a pretty good idea what the actual HOUSE cost to build and that is the number you should use. If they do an appraisal for closing then that is a good number to use as well.

As for the wind hail, there are different ways to determine your deductible. Some companies just have the same deductible for all perils (losses). In your first quote they gave you a deductible for hurricanes and one for everything else. In the second quote they gave you a deductible for wind/hail and one for everything else. On my personal policy I just have a $1000 deductible for everything.

Most insurance policies written in the US now cover everything except the few named things they don't cover--mostly water damage from floods, sewer back up, etc. Somethings you can add back in, like sewer back-up, others you can't like flood. That has to be a separate policy.

Based on the quote alone I would go with policy #1 BUT I don't know which company they are from so that could factor into the decision too. DM me with the different company names AND where you live--are you hurricane prone??

[golfgal]

OK, nevermind, I see you are in VIrginia--why the high hurricane deductible??? Also, if your deductible for everything else really is $100, I would move that up to at least $500 and save some money.

[darkblue]

Appraisal is done for $322000 for 1680 sq ft living space. Closing will be at this month end. I have sent emails asking for clarification you mentioned to both companies( Geico - 1st one and Farmers - 2nd one) on friday. I have not received any mails back from them.Hopefully i hear on monday. From online i found that hurricane coverage is same as wind & hail coverage. I don't know why Geico charging $6440 for hurricane deductible. I will ask Geico to charge $1000 or $500 for eveyrthing regarding hurricane coverage.So quote price may go up and i will ask to increase the deductible from $100 to $500 or %1000.

[golfgal]

Is this for a house in Virginia or are you moving elsewhere? I am still a little stumped on the hurricane issue--not that they can't happen there but they are fairly rare.

Personally I wouldn't use either of those companies. Have you checked with State Farm?

[darkblue]

Originally Posted by golfgal

Is this for a house in Virginia or are you moving elsewhere? I am still a little stumped on the hurricane issue--not that they can't happen there but they are fairly rare.

Personally I wouldn't use either of those companies. Have you checked with State Farm?

Its for a new house in virginia beach. Will state farm run credit report ? I will try them tomorrow.