by Guest » Mon Sep 02, 2013 07:10 am
Our insurance company dropped us and our lender telling us that they’ll get us ne insurance policy with way more coverage ($160,000). Our home is worth about $75,000 on this day. We got hold of it 9 years ago for $125,000; still paying the premiums; never been late and no equity build up…
Posted: Mon Sep 02, 2013 03:15 pm Post Subject:
First, don't type the actual question in the subject line.
Can your carrier drop you for a bad roof? They can non-renew your policy, yes.
Do you have a Replacement Cost policy? If so, it's not the value of the home... it's the cost to build it brand new that you need to insure. You can certainly argue with your carrier to lower the dwelling amount. I've never heard of a carrier not allowing you to lower that portion of the policy. Of course, there is a co-insurance clause that you need to review.
Posted: Tue Sep 03, 2013 02:30 pm Post Subject:
I've never heard of a carrier not allowing you to lower that portion of the policy.
I have.
I've been fighting with Safeco over the dwelling valuation of my personal residence for five years that's now grown to about $100,000 more than replacement cost with all the inflation increases in that time. Can't get them to lower it. Problem is, I can't find a replacement policy from any other carrier with a lower dwelling value for less premium than what I pay Safeco.
While this seems like an OK scenario, it is not, because it makes earthquake coverage unrealistic. Not only does it inflate the cost of that policy, but it raises the deductible to an unreasonable amount.
Posted: Tue Sep 03, 2013 03:13 pm Post Subject:
I've never seen a carrier not allow it's insured to choose the amount of dwelling coverage but I have no doubt that they do give people a hard time about it. It's really just a scam. The carrier collects a higher premium on an amount that they would only pay if the house burned to the ground with nothing left (almost never happens).
USAA does the same rape job on personal property. It's based on a percentage of the value of my home. I am single guy and live alone. It appears that I'm going to have the same amount of personal property as a family of 4 or 5 (I have a 5 bedroom home). How does that work? I've called and they refuse to lower the amount. I guess insurance companies know more about how much personal property a person has then the person themselves. Also, the policy has something called co-insurance to prevent a person from under insuring. So clearly it's just a way for the insurance companies to over-charge. I have no idea why it's still legal.
Posted: Tue Sep 03, 2013 09:35 pm Post Subject:
I guess insurance companies know more about how much personal property a person has then the person themselves.
And in the face of a total insured loss, try to collect 100% of the personal property limit of liability! LOL.Add your comment