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Message
Homeowner's Insurance Quote Question...
Posted on 5/13/16 at 9:23 am
Posted on 5/13/16 at 9:23 am
Found out my rate is going up. Shopped around and realized it's still a fantastic rate with a 30% increase included. My motivating pain is that I'm escrowed and this will adjust my payment if I don't come out of pocket.
My agent called me back and shaved about 10% of the 30% off with a new quote. The only issue is the replacement value.
The original level was X, but the most recent home in my neighborhood-which is a little cul-de-sac neighborhood of extremely similar floor plans-appraised for X(1.125).
A rising tide lifts all boats as the saying goes. So the original, 30% increase quote covered my replacement cost at the newer home value that's assumed based on the last cookie being cut in our neighborhood. The 10% got shaved by reducing the replacement cost back down to X. Which I know now is not what the going rate would be.
Now I have contents coverage of up to $80,000...and while our home and our automobiles would not amount to this, could we "make up" the potential difference of 1/8th of the home's value in the event of a disaster that resulted in a total loss of the home? Also, the cost of my land was included in the original appraised value and in the event of a rebuild it would be (though the demo costs would be a net negative as well).
My gut tells me this is somewhat risky and perhaps ill-advised. My wallet's busy screaming at me to save money.
Do I go with my gut or my wallet?
My agent called me back and shaved about 10% of the 30% off with a new quote. The only issue is the replacement value.
The original level was X, but the most recent home in my neighborhood-which is a little cul-de-sac neighborhood of extremely similar floor plans-appraised for X(1.125).
A rising tide lifts all boats as the saying goes. So the original, 30% increase quote covered my replacement cost at the newer home value that's assumed based on the last cookie being cut in our neighborhood. The 10% got shaved by reducing the replacement cost back down to X. Which I know now is not what the going rate would be.
Now I have contents coverage of up to $80,000...and while our home and our automobiles would not amount to this, could we "make up" the potential difference of 1/8th of the home's value in the event of a disaster that resulted in a total loss of the home? Also, the cost of my land was included in the original appraised value and in the event of a rebuild it would be (though the demo costs would be a net negative as well).
My gut tells me this is somewhat risky and perhaps ill-advised. My wallet's busy screaming at me to save money.
Do I go with my gut or my wallet?
This post was edited on 5/13/16 at 9:26 am
2
Posted on 5/13/16 at 9:39 am to GFunk
Your increased replacement cost value on your insurance policy has NOTHING to do with any homes that have been recently appraised in your neighborhood. ZERO. Your policy has an inflation guard that it goes up a bit each year. Your policy is still cheap as frick, you are just spoiled by your first couple years premium. I'd leave it be for most part right now, leave yourself options in the future.
ASI also offers increased replacement cost endorsement you can add if you lower your Cov. A back down, gives you an automatic 25% additional coverage if needed. Cost may wash out though. Automobiles have nothing to do with contents brah.
ASI also offers increased replacement cost endorsement you can add if you lower your Cov. A back down, gives you an automatic 25% additional coverage if needed. Cost may wash out though. Automobiles have nothing to do with contents brah.
Posted on 5/13/16 at 10:46 am to Chad504boy
quote:
Chad504boy
quote:
Your policy has an inflation guard that it goes up a bit each year.
Understood. It seems to be congruent with the fact that my original replacement was $148 but the subsequent policy was $160 which was in line with recent appraisals in the neighborhood of almost exact comps. I figured they were doing at least some type of comp search for recent sales or compiling local data as a means of accounting for that but if not whatev.
By backing the replacement value back down to the original amount, would that inflation guard still provide protection in light of potential need for replacement?
This post was edited on 5/13/16 at 10:47 am
Posted on 5/13/16 at 11:00 am to GFunk
what that endorsement (increased replacement cost) does is really provide protection for disasters mostly when rebuilding costs goes up substantially than the norm. Post storms, everything is pricier. ASI is one of the higher end replacement cost calculators compared to some other companies but they aren't basing it off comps etc.
The inflation guard is just each year, your cov a goes up 2-3% or so.
The inflation guard is just each year, your cov a goes up 2-3% or so.
Posted on 5/13/16 at 11:37 am to GFunk
If you are comfortable considering anything out of pocket like you mentioned in the OP, I assume you have at least a 10,000 deductible on all perils other than wind already?
Only saves a few hundo...but it's something
Only saves a few hundo...but it's something
This post was edited on 5/13/16 at 11:38 am
Posted on 5/13/16 at 11:58 am to Mr.Perfect
i can promise you he's likely got 1,000 aop and wind deductibles.
Posted on 5/13/16 at 12:35 pm to Mr.Perfect
quote:
If you are comfortable considering anything out of pocket like you mentioned in the OP, I assume you have at least a 10,000 deductible on all perils other than wind already?
That would be insane.
I am writing a home valued at $980,000 in Orange Beach, and the insurance is only $8400, but the 3% hurricane deductible is nearly $30,000......$1000 AOP.
Posted on 5/13/16 at 1:10 pm to Chad504boy
Homeowner's in NOLA is killing me. Who do I have to call to get me a cheaper policy?
Posted on 5/13/16 at 1:18 pm to Chad504boy
quote:
Chad504boy
quote:
i can promise you he's likely got 1,000 aop and wind deductibles.
Correct.
Posted on 5/13/16 at 1:56 pm to GFunk
Repairing a house cost a hell of a lot more than building form scratch. I am an adjuster, trust me.
Posted on 5/13/16 at 3:35 pm to BamaCoaster
quote:
That would be insane.
I am writing a home valued at $980,000 in Orange Beach, and the insurance is only $8400, but the 3% hurricane deductible is nearly $30,000......$1000 AOP.
10k AOP is insane?
If that million dollar property burned to the ground you think the insured will complain about the extra 9,000 deductible?
But I bet if you put the guaranteed savings of lower premium in front of him, he would take it.
But be honest, that would reduce your commission
Posted on 5/13/16 at 3:52 pm to Mr.Perfect
The best deductible & premium options with ASI are the 1% or 2% All Perils deductible.
$1,000 AOP is definitely too low and you avoid the $15,000+ wind deductible with the combined deductible.
$1,000 AOP is definitely too low and you avoid the $15,000+ wind deductible with the combined deductible.
This post was edited on 5/13/16 at 3:57 pm
Posted on 5/16/16 at 10:23 am to Solo
quote:
Homeowner's in NOLA is killing me. Who do I have to call to get me a cheaper policy?
year construction of house?
coverage amount insured for?
current carrier and premium paying?
Posted on 5/16/16 at 11:39 pm to Chad504boy
Replacement cost, is what the home would cost to replace if it was totally destroyed. This does not include land or detached structures.
The market value or appraisal value had nothing to do with the replacement cost.
This is an example: if an average home is 1500 square feet and say the replacement cost comes out to be $150,000. If you take that home and place it in the French quarter it may sell or appraise for 1 million. Take the same home and place it in a really bad neighborhood. It may have a market value or appraised value now of $100,000. In both cases the replacement cost would still be $150,000.
I work for one of the largest independent agencies in the state and would be happy to help anyone out on here. I don't want to seem like I am soliciting business on here but if it's something anyone is intrested I would be happy to shop your homeowners insurance over 20 different companies.
The market value or appraisal value had nothing to do with the replacement cost.
This is an example: if an average home is 1500 square feet and say the replacement cost comes out to be $150,000. If you take that home and place it in the French quarter it may sell or appraise for 1 million. Take the same home and place it in a really bad neighborhood. It may have a market value or appraised value now of $100,000. In both cases the replacement cost would still be $150,000.
I work for one of the largest independent agencies in the state and would be happy to help anyone out on here. I don't want to seem like I am soliciting business on here but if it's something anyone is intrested I would be happy to shop your homeowners insurance over 20 different companies.
This post was edited on 5/16/16 at 11:44 pm
Posted on 5/16/16 at 11:42 pm to SaintNation
If your in NOLA, please realize you have options. There are really good companies writing. We have about 5 that are really good in New Orleans epically if you have updates in the home. One company offers 1,000/1,000 deductibles and I am not referring to ASI.
Posted on 5/17/16 at 7:28 am to SaintNation
How long have you been in the business?
Posted on 5/17/16 at 8:49 am to igotit
$10,000 AOP would not matter in the event the whole house burns down. But what I'd their is only $12k damage, much more likely, than the insured can't even file a claim. It might save them $120 yr but costs them 11,000 in the event something happens. If you think someone is going to do something that negatively affects their customer for $12 commission you are an idiot.
Generally to go from 1k AOP to 2500 is maybe a couple hundred a year. To go from 2500 to 10k AOP is costing dollars to save pennies.
Generally to go from 1k AOP to 2500 is maybe a couple hundred a year. To go from 2500 to 10k AOP is costing dollars to save pennies.
Posted on 5/17/16 at 8:52 am to igotit
I write New Orleans but would not consider myself competitive in that market as we are located in Mississippi.p and don't have all the ,pmarkets NOLA companies do. However I hear all my marketing reps talk about decreasing premiums over there. If you are having problems with yours call an independent agent. If you have a choice between admitted company and surplus lines, choose admitted even if it is a bit more
Posted on 5/17/16 at 11:41 am to igotit
quote:
How long have you been in the business?
The agency that I work for has been in business for 40+ years. I have been an agent for 5.
Posted on 5/17/16 at 1:23 pm to SaintNation
quote:
One company offers 1,000/1,000 deductibles and I am not referring to ASI.
UPC Duh. and offering to shop their business is soliciting.
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