Home Owners, Auto Insurance, and Related Stuff

[C-Man 27802]

13 hours ago, ROFL BOX said:

Meanwhile, the Farm Bureau adjuster won't call back on our request to refresh the quote from a year ago.

I've said it once, I'll say it a thousand times. You get what you pay for in personal insurance. This kind of shit doesn't happen if you're insured by Chubb, AIG, PURE or Cincinnati.

[mapplewhite132 309]

Settled a third party injury claim from a car wreck 2.5 months ago and still haven't received payment from the insurance company. is this typical?

[T’Boo Ted Marshall 2779]

No.
You get paid typically the day you sign the release.

[CooterBrown 18289]

Watch for that LM rate hike within a year or two after you sign up.

It’s been 5 years with no hike so far.

[T’Boo Ted Marshall 2779]

Good for you.

[Anastasis 23724]

It’s been 5 years with no hike so far.

I don’t believe you gif.

[C-Man 27802]

Quote

 

Personal lines underwriting losses rose in 2017 for the fourth year in a row, Fitch Ratings found in a new report. There’s a twist, however.

In the three years prior to 2017, personal automobile insurance contributed largely to underwriting losses. It is showing some improvement now, but homeowners insurance is now a major loss ingredient for the sector.

“The homeowners line is traditionally a more volatile product segment, which experienced a higher combined ratio than personal auto for the first time since 2012,” said Managing Director James Auden.

According to Fitch, industry statutory personal lines combined ratios rose to 103.8 in 2017, even as written premiums continued to grow. Higher catastrophe losses are largely to blame for the losses, while growing auto insurance losses were the cause in the previous three years.

Other findings from the Fitch report:
•While personal automobile insurance still generated big underwriting losses in 2017, there were improvements, thanks to price increases in recent renewals. Fitch tracked a combined ratio of 102.6 for 2017, down almost four points for the year.
•The combined ratio for homeowners insurance rose to 107 for 2017, due to higher catastrophe losses. From 2013 to 2016, the average combined ratios were around 92.
•Personal auto grew the fastest among personal lines segments over the last two years, generating more than 7 percent in net written premium growth. Fitch sees that continuing in 2018 because of price increases.
•Homeowners insurance, on the other hand, dipped over the previous three years and was only 2 percent in 2017. Fitch sees a quicker expansion in 2018.

For 2018, Fitch expects auto insurance to get close to a 100 combined ratio and homeowners to improve, assuming there are no large catastrophe losses as in 2017.

Fitch said its sector outlook for the U.S. personal lines sector remains negative, though the rating outlook for most personal lines writers is stable.

Source: Fitch Ratings

 

https://www.mynewmarkets.com/articles/183279/report-rising-homeowners-losses-hurt-p-c-insurers-in-2017

[T’Boo Ted Marshall 2779]

Good times with ratios like that.

[3adays 454]

I was in a car wreck recently and never hired an attorney. Anyone ever file a pain and suffering claim and/or diminished value claim on their own? Is there some template to use? My insurance company handled the auto repair portion and will surrogate back against the at fault driver for that, but the rest is on me. 

[ROFL BOX 6655]

On 7/23/2018 at 6:50 PM, 3adays said:

I was in a car wreck recently and never hired an attorney. Anyone ever file a pain and suffering claim and/or diminished value claim on their own? Is there some template to use? My insurance company handled the auto repair portion and will surrogate back against the at fault driver for that, but the rest is on me. 

What, you can't birth that baby yourself?

[C-Man 27802]

Be careful out there on the roads today, my Surly friends. Statistically speaking, 8/2 is the most lethal day of the year when it comes to auto fatalities.

It’s not Super Bowl Sunday or even New Year’s Eve that makes for the most lethal day on U.S. highways. It’s Aug. 2.

Today, Thursday Aug. 2, is when, on average, car wrecks are likely to kill more Americans than any other day of the year, according to the Insurance Institute for Highway Safety, which based its calculations on fatalities from 2012 to 2016. A total of 505 people were killed on that day during the period.

Full article here: https://www.insurancejournal.com/news/national/2018/08/02/496662.htm

[troph 25241]

Weird. Summer driving season I guess but still odd.

[C-Man 27802]

54 minutes ago, troph said:

Weird. Summer driving season I guess but still odd.

Article mentions the amount of people moving around in autos. Many more people are driving in unfamiliar settings while on vacation, things like that. Also, when the weather is really, really shitty due to rain, ice or snow there are less people on the roads.

[troph 25241]

I would think the big drunk weekends over an ordinary summer day.

[GottaB 607]

Article mentions the amount of people moving around in autos. Many more people are driving in unfamiliar settings while on vacation, things like that. Also, when the weather is really, really shitty due to rain, ice or snow there are less people on the roads.

Another risky day: Election Day. 18% increase in motor vehicle deaths

[BearSchlong 8248]

@C-Man recently closed on a house and went through USAA for homeowners and they also sold me a TWIA windstorm policy after Weston's computers were down for a week.  I need flood insurance - During Harvey we had water just up to the slab, similarly with Imelda.  I intend to shop USAA for everything later this year, but should I call them for flood or should I buy that separately from a different company?

My newish wife got me USAA and she's been a loyal customer for 30 plus years but I'm prepping her for the fact that we're going to shop them.

I wish I'd PM'd you prior to closing.

[C-Man 27802]

9 minutes ago, BearSchlong said:

@C-Man recently closed on a house and went through USAA for homeowners and they also sold me a TWIA windstorm policy after Weston's computers were down for a week.  I need flood insurance - During Harvey we had water just up to the slab, similarly with Imelda.  I intend to shop USAA for everything later this year, but should I call them for flood or should I buy that separately from a different company?

My newish wife got me USAA and she's been a loyal customer for 30 plus years but I'm prepping her for the fact that we're going to shop them.

I wish I'd PM'd you prior to closing.

Sent you a PM. Happy to help. We can get the flood placed for you and then look at the rest of your account when you're ready.

[Nueces River Rat 5798]

7 hours ago, BearSchlong said:

@C-Man recently closed on a house and went through USAA for homeowners and they also sold me a TWIA windstorm policy after Weston's computers were down for a week.  I need flood insurance - During Harvey we had water just up to the slab, similarly with Imelda.  I intend to shop USAA for everything later this year, but should I call them for flood or should I buy that separately from a different company?

My newish wife got me USAA and she's been a loyal customer for 30 plus years but I'm prepping her for the fact that we're going to shop them.

I wish I'd PM'd you prior to closing.

Are you in a FEMA designated  flood zone?  If so and you have a NFIP elevation cert, you need to look at this route first as the premiums on the private market flood may or may not be higher than the National Flood Insurance Program. 

Depending where you are in the coastal area there  are several companies out there who will write windstorm with the HO-3 and it can be more affordable than having it split into two policies.  Most insurance companies are bureaucratic headaches, but TWIA is a migraine.  Ask the fine folks in the Rockport, Port A areas how all that went down during Harvey.   

And because of the recent hurricane activity here and all along the US Gulf and Atlantic coasts the past few seasons , the endless wildfires in California and other locales like the DFW area being a repeated bullseye for severe weather loses,  get ready for it to show up in premiums in the near future.   

[MonkeyDoughnut 10809]

7 hours ago, BearSchlong said:

@C-Man recently closed on a house and went through USAA for homeowners and they also sold me a TWIA windstorm policy after Weston's computers were down for a week.  I need flood insurance - During Harvey we had water just up to the slab, similarly with Imelda.  I intend to shop USAA for everything later this year, but should I call them for flood or should I buy that separately from a different company?

My newish wife got me USAA and she's been a loyal customer for 30 plus years but I'm prepping her for the fact that we're going to shop them.

I wish I'd PM'd you prior to closing.

Others got you on the floor info...regarding shoppong USAA, if she's been with them 30 years I can almost guarantee you are being taken to the cleaners and will save at least 40%+ shopping them around.  Great company if you need a claim as they cover most things you'll never need... just know you are still paying for them and will never need them.  I felt like such a sucker staying with them over 25 years... Left them 5 years ago and haven't regretted a thing. (Ps. Theyll give you crap when you indicate your leaving telling you how sorry you'll be and no one ever leaves them)

[billfromlaketravis 11846]

I went through an agent in Houston, Goosehead Insurance. They saved me quite a bit of money on my home owners insurance given the age of my roof. 
 

Flood insurance rates are set by FEMA so there’s not much wiggle room. I went with Geico, they were about $50 cheaper than other quotes. 
 

[Nueces River Rat 5798]

2 hours ago, billfromlaketravis said:

I went through an agent in Houston, Goosehead Insurance. They saved me quite a bit of money on my home owners insurance given the age of my roof. 
 

Flood insurance rates are set by FEMA so there’s not much wiggle room. I went with Geico, they were about $50 cheaper than other quotes. 
 

You can get flood coverage in the private markets though what are surplus and excess lines.....  in fact if you live in a low risk zone for flooding L (like Zone X) , coverage is relatively inexpensive.   Zone X is the lowest category meaning it might have a chance for a historic flood every 500 years on average, but that doesn't mean localized areas within that zone might get flooded.

But yea if you are in high risk zone for flooding or smack next to a body of water, FEMA is the route to go in most instances.  But the max you can get is $250k in Dwelling, so then you have to go the excess market if you are required to get more by your lender or think $250K is not enough to cover the absolute worse case scenario where the structure totally washes away.  Fortunately in most flood events which occur inland, the structure is salvageable and the max limits will suffice.  

[msbesq 388]

2 hours ago, billfromlaketravis said:

I went through an agent in Houston, Goosehead Insurance. They saved me quite a bit of money on my home owners insurance given the age of my roof. 
 

Flood insurance rates are set by FEMA so there’s not much wiggle room. I went with Geico, they were about $50 cheaper than other quotes. 
 

I also have Goosehead as my agency. One of their idiotic employees, Paul Davis, stormed the Capitol tonight. I told my agent that if he is not terminated by tomorrow, then I’m moving all of my business to another agency. I have 6 policies through them. Im really pissed off.

[Nueces River Rat 5798]

3 hours ago, MonkeyDoughnut said:

Others got you on the floor info...regarding shoppong USAA, if she's been with them 30 years I can almost guarantee you are being taken to the cleaners and will save at least 40%+ shopping them around.  Great company if you need a claim as they cover most things you'll never need... just know you are still paying for them and will never need them.  I felt like such a sucker staying with them over 25 years... Left them 5 years ago and haven't regretted a thing. (Ps. Theyll give you crap when you indicate your leaving telling you how sorry you'll be and no one ever leaves them)

USAA has done a wonderful job wedding themselves to the military....   They are no different as some of the captives as they are called such as State Farm. Allstate and Farmers to name the big three out there who bombard the airwaves with ads like USAA.   You have some agencies  with those companies who have  generations of families in their books because Grand Dad when with SF down on Main Street, so did Dad ... So I'll go with them.   I'm in the Independent world and I've come across folks who after quoting them with companies I write for that are just a solid as the noted companies and find they would save some good money, opt to stay with one of the captives because of the loyalty to the agent and the name.   And  I understand that loyalty which I hope to enjoy one day as I build my agency.  I actually like to build relationships with those captives in the event they have a circumstance like a teen driver coming on to one of their  clients policy and their premiums go up substantially (the captives named above tend to favor more mature drivers with good records).  That can become a trigger point for the parents to start shopping elsewhere and a good captive will try to nip that in bud if they have their home on their books because someone like me is ready and willing to take both the autos and home if possible and can at times beat their multi policy discounts. So I'll have the captives refer the auto to me and I promise not to cross sell the client if they have their homes with the captive.   I've also had some hard to place homes/commercial referred to me by captives because they can't write older homes, wind  or what they put together with TWIA and their HO-3 is out of this world expensive, I find their client coverage.   In return I will send my life referrals to them as some of their district managers require a certain number of life applications.   

[BearSchlong 8248]

Captives. . .ouch.

Thanks very much for all the replies.

[ROFL BOX 6655]

On 1/6/2021 at 8:16 PM, MonkeyDoughnut said:

Great company if you need a claim as they cover most things you'll never need... just know you are still paying for them and will never need them.

That's a "used to be" for USAA.  I may have heard that someone from AllState came on board & has been affecting the culture with USAA WRT roof claims... don't quote me on that, however I have seen a shitload of pushback on their adjustments.  A higher volume of complaints about USAA - complaints coming from other restoration contractors can be found in the various FB groups.

[Nueces River Rat 5798]

7 hours ago, ROFL BOX said:

That's a "used to be" for USAA.  I may have heard that someone from AllState came on board & has been affecting the culture with USAA WRT roof claims... don't quote me on that, however I have seen a shitload of pushback on their adjustments.  A higher volume of complaints about USAA - complaints coming from other restoration contractors can be found in the various FB groups.

And there you have it.   Allstate's agents have to be some of the most unhappy in the industry and many stick with them because of the brand name recognition and if they are "happy" making a certain income year after year.  Or the agents who have an older book of business are content to just go with the flow.    So it doesn't surprise me USAA's decline has been influenced by a former Allstate decision maker.   

[hornbri 1511]

Since this thread is back up I am going to thank @C-Man for his help. He was able to get us set up with moving over Car, Boat, and Homeowners insurance back at the end of October. Super smooth process. 

[C-Man 27802]

2 hours ago, Nueces River Rat said:

And there you have it.   Allstate's agents have to be some of the most unhappy in the industry and many stick with them because of the brand name recognition and if they are "happy" making a certain income year after year.  Or the agents who have an older book of business are content to just go with the flow.    So it doesn't surprise me USAA's decline has been influenced by a former Allstate decision maker.   

I couldn't do it. I can't even begin to imagine the amount of angry phone calls Allstate agents get on a daily basis. Maybe they all run through corporate but I'd never be able to see people around town who were clients who had a bad experience with a product I sold them.

[Nueces River Rat 5798]

2 hours ago, C-Man said:

I couldn't do it. I can't even begin to imagine the amount of angry phone calls Allstate agents get on a daily basis. Maybe they all run through corporate but I'd never be able to see people around town who were clients who had a bad experience with a product I sold them.

I agree.  Maybe that's why a  good number of Allstate mailers I get are from agents in  the Houston and San Antonio  areas instead of the Corpus area.   They know better than to send them to people close by they might know or accidently bump into..   

  I can't imagine the scorn they get whenever someone responds to a mailer for home insurance and that teaser rate isn't anywhere close to what they end up quoting you.  Especially down along the immediate coast where they can't write windstorm and the person making the inquiry doesn't read the small print that says quote doesn't include windstorm.   Even if it did, those teaser rates are ridiculous.    They assume you have a brand new roof, no losses of any significance, etc.     Yea you are not going to get that HO-3 policy for $600 on the $300,000 dollar home after all.    I would never send out crap like that even it was to build up my lead data base for future business.

[ROFL BOX 6655]

Well, now that the State of Texas made it a law where deductibles HAVE to be paid (01 Sept. 2019) & we're approx. 1-1/2 years into it, you'd think a homeowner would want the best possible return on that deductible investment...

...But I still see examples of bullshit happening almost weekly.  Had a real estate transaction dealio where I got called out after the TREC inspection said the roof needed repairs due to a tree rub.

I get there, determine there's hail & a tree rub is the least of their worries... the seller files with insurance, gets approved.  You would THINK the buyer is happy because they're getting a new 30 year roof with zero out of pocket but the fuckers decided to let the seller pick the contractor (someone the buyer has zero connection with AND I'm the one who said "fuck the tree rub - we'll trim it back no charge AND I'm the one who identified the hail").

Yeah, fucked again.  & That's why I tell realtors that the truck doesn't head your way for less than $ 150.00.

[HiggyBaby 2620]

How does USAA compare to the field?

I've found better coverage for less.  I'm a long time USAA member too.  
 

Bumping this thread because it’s time for me to renew. I’ve used USAA in the past but haven’t lately because A) their premiums have been a little higher than others and B) when I did a roofing claim with them it took forever for my contractor to get his money.

That said, my “insurance guy” has told me everyone is coming back much higher this time, on par for customers around DFW. Like 20% plus higher. So now the rates are on par with USAA’s. May switch back since it’s just easier and I use them for car insurance. Has anyone else seen similar lately?

[deadshank 24654]

I’ve never seen insurance premiums go down.  Have you?

[T’Boo Ted Marshall 2779]

I’ve never seen insurance premiums go down.  Have you?

Only if you move carriers.

[deadshank 24654]

3 minutes ago, T’Boo Ted Marshall said:

Only if you move carriers.

Touché 

[HiggyBaby 2620]

I’ve never seen insurance premiums go down.  Have you?

Nah but usually the annual increase isn’t too crazy.

[HiggyBaby 2620]

I’ve never seen insurance premiums go down.  Have you?

Nah but usually the annual increase isn’t too crazy.

[Nueces River Rat 5798]

On 4/6/2021 at 2:14 PM, HiggyBaby said:

 

 

 

 

Bumping this thread because it’s time for me to renew. I’ve used USAA in the past but haven’t lately because A) their premiums have been a little higher than others and B) when I did a roofing claim with them it took forever for my contractor to get his money.

That said, my “insurance guy” has told me everyone is coming back much higher this time, on par for customers around DFW. Like 20% plus higher. So now the rates are on par with USAA’s. May switch back since it’s just easier and I use them for car insurance. Has anyone else seen similar lately?

 

 

 

 

Insurance rates are crazy right now with HO polices because replacement costs have gone up due to materials.   And wait until the last two or three tropical storm seasons, severe weather and the most recent winter mess gets baked into the cake.  At least we are not Florida.  Some companies  are dropping coverage for people who have five year old roofs forcing people into the insurer of last resort whom agents and consumers both hate. 

[C-Man 27802]

I’ve never seen insurance premiums go down.  Have you?

Higher rates are almost related to the costs of ancillary things going up as well — building materials, labor costs, etc. We had a call with Chubb on Thursday and lumber rates are up like 150% or something. Steel, I heard yesterday, is up something like 300% mainly because Amazon has apparently committed to buying 1/3 of the world’s current supply. (My numbers aren’t exact as the steel info was relayed over during a Masters watch event at Katy Trail Icehouse.)

We are in the midst of an unbelievable run of major cat events, especially in Texas. Our rates were already among the highest in the country. Tack on our little winter vortex from Feb and there’s not much relief in sight. Everybody, and I mean everybody, is taking rate. My advice is always don’t shop solely on price — make sure there’s value. And the high net worth carriers are worth their weight in gold in claims situations.

[C-Man 27802]

Insurance rates are crazy right now with HO polices because replacement costs have gone up due to materials.   And wait until the last two or three tropical storm seasons, severe weather and the most recent winter mess gets baked into the cake.  At least we are not Florida.  Some companies  are dropping coverage for people who have five year old roofs forcing people into the insurer of last resort whom agents and consumers both hate. 

California is worse than Florida.

Also, I have not personally seen your last sentence happen with any of our carriers.

[Nueces River Rat 5798]

On 4/10/2021 at 11:14 AM, C-Man said:

California is worse than Florida.

Also, I have not personally seen your last sentence happen with any of our carriers.

Ooops I meant to say 10 years and I don't know where the five years came to my mind.  Ten years in the whole scheme of things when we discuss age of home is "new" and it's causing all sorts of chaos in the market in Florida.    TWIA is a mess within itself,  but it looks like an A+ rated company compared to Florida's insurer of last resort.

 

Edited April 12, 2021 by Nueces River Rat

[Irish Wrist Watch 1503]

My theory on auto insurance is that the rates are tightly regulated by the State insurance board, run by ex Insurance Company bigshots with skin in the game. When you change carriers, they are allowed to give you a new customer discount, which they will try to make up over the following 2 or 3 years.

That is why you can have a perfectly clean driving record, no claims, a car which gets older every fucking year, i.e., the replacement cost goes down every fucking year, and yet premiums continue to rise. I compared Costco to all the other suspects, a couple of years ago, and they came out the winner. Now I'm driving 10 mi a week and paying more than is justified.

Just a mental exercise here, but with this COVID economy, I'm actually wondering about going without any insurance, driving extremely safely and waiting for my next inspection to renew. A couple of questions arise:

I have to believe that the only way a cop would know you were breaking the law, is if he put your license plate into the system, and as long as you're driving safely, they're not likely to go to that trouble, unless somehow the lookup system has been automated to such an extent that tags are read and processed at random via camera as the  cop goes thru his daily routine. Say for example, every time he gets behind someone, the patrol car's camera picks up the tag and processes it. Surely their systems aren't yet that advanced? 

I know the state will send you a letter, but can't you just write back and say that you're not driving right now? I've heard that some states ask for their plates back. Texas wouldn't do that, would they?

[Reagan1k 3043]

Are you talking about going without liability coverage - not just dropping comprehensive?

I wouldn't ever own a vehicle (ranch / farm truck included) without liability coverage.  Even if you aren't at fault you need the insurance company to be on the hook and provide you legal cover.  You can and will be sued even if you aren't at fault in an accident.  Errrrbody's lawyer will cast a wide net and just the cost to defend yourself against a frivolous countersuit far outweighs the cost of liability coverage.

Someone rear ends you and you read end the car in front of you and you'll have legal bills out the ass.  Kid runs out in front of you- you're bankrupt.

Please don't do that. 

What happens if someone else needs to drive your car in an emergency, or you have a medical event while driving.  This idea is terrible.

[Irish Wrist Watch 1503]

Just venting a little, perhaps... but 10 fucking miles a week. Speed limit. Light traffic (most of the time). Still, I'm curious about the technology available to the average patrol car. I'll google it....

That was easy... "Mobile ALPR (Automated License Plate Readers) cameras. These are often attached to police patrol cars, allowing law enforcement officers to capture data from license plates as they drive around the city throughout their shifts. In most cases, these cameras are turned on at the beginning of a shift and not turned off again until the end of the shift."

So now the question is: would lack of insurance be an alert item? In this era?  Hell, 2/3 or more of the illegals in the State don't have insurance. For all I know it's 100%.The beeper would be going off constantly.

Edited April 16, 2021 by Irish Wrist Watch

[C-Man 27802]

My theory on auto insurance is that the rates are tightly regulated by the State insurance board, run by ex Insurance Company bigshots with skin in the game. When you change carriers, they are allowed to give you a new customer discount, which they will try to make up over the following 2 or 3 years.
That is why you can have a perfectly clean driving record, no claims, a car which gets older every fucking year, i.e., the replacement cost goes down every fucking year, and yet premiums continue to rise. I compared Costco to all the other suspects, a couple of years ago, and they came out the winner. Now I'm driving 10 mi a week and paying more than is justified.
Just a mental exercise here, but with this COVID economy, I'm actually wondering about going without any insurance, driving extremely safely and waiting for my next inspection to renew. A couple of questions arise:
I have to believe that the only way a cop would know you were breaking the law, is if he put your license plate into the system, and as long as you're driving safely, they're not likely to go to that trouble, unless somehow the lookup system has been automated to such an extent that tags are read and processed at random via camera as the  cop goes thru his daily routine. Say for example, every time he gets behind someone, the patrol car's camera picks up the tag and processes it. Surely their systems aren't yet that advanced? 
I know the state will send you a letter, but can't you just write back and say that you're not driving right now? I've heard that some states ask for their plates back. Texas wouldn't do that, would they?

Dear lord, this is the stupidest idea ever. Sorry. You never know what can happen on the road. Drop comp and collision if you think you can drive only a little and be safe but shit, it’s a liability claim that will wreck your life. Your loss is relatively capped on the property side — you can only “lose” your car’s value. Kill somebody inadvertently and be found liable and your financial life is ruined in the blink of an eye.

[UTGrad98 2343]

I have some more time on my hands and am trying to lower my home/auto insurance. My question is what parts of my coverage is bullshit and can be lowered/removed etc.

From reading some definitions, I dont care for loss of use. Id like to drop that. I dont need my limit of personal property to be $216,000. More like the shit in our home is worth like 20 grand at most. For separate structures all we have is our fence but isnt an entire new fence like 8 grand? Id like to lower that amount covered as well. The only one I get a little nervous about is Dwelling. I owe 238k on our home. I have read about people lowering the limit to what you owe on the house. Someone please explain all of this to me. I have never really looked at my home insurance policy before and it is just the one they gave me when I got the house 7 years ago. We live in Flower Mound Tx if that makes a difference. I have also heard you can lower your premium by increasing the deductibles. Here are mine.

 

I mean seriously, with these deductibles, what the fuck am I actually paying for? A black swan event like a total loss? How many times in your life are you going to file a claim if the deductible is 6k a year?

Im paying $2100 a year for this with Farmers. Have never filed a claim, and want it lowered in the smartest possible way considering what I have just told everyone. Thanks

[UTPhil2006 3930]

@C-Man to the white courtesy phone 

[Sandman 3435]

38 minutes ago, UTGrad98 said:

Im paying $2100 a year for this

I'm in Oklahoma and I'd like to stab you with a rusty spoon. I'm paying over $3200 a year for what I'm sure is much less house. The weather up here fucks us royally. 

[UTGrad98 2343]

I've been thinking about it and the only things I would ever file a claim for is a bad hailstorm, a direct hit of an f4 or f5 tornado, an attic fire, and a direct nuclear strike on my home. Other than that, when am I ever filing a claim? When I get home I'm going to look at the odds of those things happening in flower mound texas and go from there. 

[C-Man 27802]

31 minutes ago, UTGrad98 said:

I have some more time on my hands and am trying to lower my home/auto insurance. My question is what parts of my coverage is bullshit and can be lowered/removed etc.

From reading some definitions, I dont care for loss of use. Id like to drop that. I dont need my limit of personal property to be $216,000. More like the shit in our home is worth like 20 grand at most. For separate structures all we have is our fence but isnt an entire new fence like 8 grand? Id like to lower that amount covered as well. The only one I get a little nervous about is Dwelling. I owe 238k on our home. I have read about people lowering the limit to what you owe on the house. Someone please explain all of this to me. I have never really looked at my home insurance policy before and it is just the one they gave me when I got the house 7 years ago. We live in Flower Mound Tx if that makes a difference. I have also heard you can lower your premium by increasing the deductibles. Here are mine.

 

I mean seriously, with these deductibles, what the fuck am I actually paying for? A black swan event like a total loss? How many times in your life are you going to file a claim if the deductible is 6k a year?

Im paying $2100 a year for this with Farmers. Have never filed a claim, and want it lowered in the smartest possible way considering what I have just told everyone. Thanks

A lot of the above is built into the policy -- as it is with all carriers. The changes you're talking about -- if you can drop or lower them at all -- will save you pennies. Your Other Structures limit is already at 5% -- I doubt they'd go any lower than that. This covers all structures on a property that are not attached to the main dwelling -- fences, hardscape, gates, swimming pools, detached garages, swimming pools, gazebos, etc. To answer your question, insurance IS not supposed to be used as a maintenance policy, at least not anymore. As long as you have a mortgage you're required to have insurance. I don't know specifics on your situation but there's no way the amount of your "stuff" is only $20K unless you're a college kid renting an apartment.

You mention a "Black Swan" event and that's exactly what you're guarding against (among other things) when it comes to homeowners insurance. For many, a home is the largest investment they have. If you have no insurance -- again, if there's mortgage you're required to have insurance -- you've basically lost the entirety of it if you have a loss due to fire, hurricane or tornado. (You'd still own the lot but you're going to come out of pocket to scrape and clear the destroyed home.) You shouldn't be filing small claims anyway. These follow you around like a scarlet letter. Best to make them count when they happen. It needs to be a five-figure loss minimum before you even think of filing a claim in this market. The top two causes of loss for Texas homeowner policies are wind/hail and then water damage. A 1% (or higher) deductible is not unusual. Maybe Farmers would let you drop to 1% but you'd pay a little more. The starting point for a new comp shingle roof these days is probably $10K, probably more in all honesty. Let's say it's $15K -- with your 1.5% deductible, you're covering half that. If you can get a 1% deductible, it's even less than that. (Be aware that Farmers has a depreciating roof payment schedule, I think, but not sure if it kicks in on Year 1 of a roof or later.) Your deductible for a fire or water loss is $3930, which isn't bad. Loss greater than $10K, file a claim. Under that and it's best to bite the bullet and handle yourself.

The Personal Property limits covers everything you own that isn't a permanent fixture to the home. Basically, if you could pick your house up and shake it, everything that shakes loose is personal property -- furniture, electronics, clothing, toys, etc. You *might* be able to lower this with Farmers to 50%, maybe 40%. Again, we're not talking seismic savings. DO NOT TOUCH THE LIABILITY LIMIT -- if you do anything, increase it to $500K. This is coverage for accidents that happen on your premises -- FedEx driver slips on ice on your front porch and gets hurt, he can sue you. Vagrant tries to hop your fence and rips his nutsack off, he can sue you. Have a party at your house and somebody gets drunk and falls down the stairs and paralyzes themself, he/she can sue you. Farmers might let you monkey with the Dwelling value -- they don't necessarily care as they're only going to a certain amount -- usually Coverage A plus an additional ~20% depending on the endorsement (just noticed you have 10%).

Loss of Use comes into play IF you are forced to vacate your home following a covered loss -- hotels, rental homes, emergency boarding for an animal, meals, etc can add up really quickly, especially if you have a serious claim such as major water loss, tornado, hurricane, fire, etc.

When it comes down to it $2100 annually is not a bad deal in this climate. And none of what you've posted above falls under what I would term "bullshit" that should be removed. You *could* conceivably lower your Personal Property limit to a point but I recommend picking a room in your house and do a mental calculation of everything in that room and see what you come up with. In 99.9% of cases, people have way more shit than they think they do.

My apologies if this is all over the place. I didn't really edit myself much on this.

The bottom line is this is about as bare bones as you can get a policy these days and it's not a terrible price. (I don't know where this house is located either.)

[UTGrad98 2343]

That is excellent information. Thank you for taking the time to write it. I have a meeting with my farmers rep tomorrow to discuss and I just didn't have a thorough understanding.