At What Point.

[WFM]

I received my homeowners renewal today. I've had the same policy since 1998. Not one claim in all these years. It increased almost one thousand dollars.
At what point do you say enough is enough and just take your chances.
Of course i have automotive and business insurance also.
Thoses have increased also.
Insurance Poor is actually a thing.

 

[chim]

First thought is that line from Dirty Harry about being lucky

Years ago I had a ratty Jeep Wrangler that wasn't worth a lot, so I elected for coverage on the other guy only. Reasoning was that if I wrecked the jeep bad enough to need outside assistance with the repairs I'd likely be dead from the accident anyway.

 

[85Hokie]

I have an agent that I have been with since 1987 ...........He HAS always somehow done things for me in the computer that made me pay less. All his employees work the same way.

My advice for you is this - call around to others......... see what those offers look like,

THEN see your person - IN PERSON - I am sure you deal with a particular person rather than just anybody that picks up the phone??? AND explain the situation - you will be surprised what they can "adjust" with you leaving that company. AND if they cannot help - then maybe it is time to move on from that company.

Another thing to add - increase your deducible - stupid to pay for a $100 or a $250 deduct.

 

[chim]

I have an agent that I have been with since 1987 ...........He HAS always somehow done things for me in the computer that made me pay less. All his employees work the same way.

My advice for you is this - call around to others......... see what those offers look like,

THEN see your person - IN PERSON - I am sure you deal with a particular person rather than just anybody that picks up the phone??? AND explain the situation - you will be surprised what they can "adjust" with you leaving that company. AND if they cannot help - then maybe it is time to move on from that company.

Another thing to add - increase your deducible - stupid to pay for a $100 or a $250 deduct.

Good point. I raised the homeowner's deductible to $3K. Depends on what you're comfortable with.

 

[InTheWoods]

...At what point do you say enough is enough and just take your chances...

I'd say if your net worth totals something like 20-50x the value of the asset, it's probably not worth insuring it. In that case, having to incur the cost of replacing the asset is a pretty small blip...

So, if you had a 500k home, and 10-25M on-hand you probably don't need insurance...

Most 'average' Americans probably don't get to that point with their home. Cars? More likely.

 

[ctfjr]

Sore subject with me

As @InTheWoods stated most people can't afford the risk - even on their cars. I was always under the impression if you had a good personal relationship with an insurance agent you would get good advise and 'reasonable' pricing - which was fine with me. When it came to my business policy I was not a risk taker. I believed that the insurance company was there for that. For many many years I felt that he would always sell me the products I needed. Until. . .

I was in an accident, clearly the other drivers fault (I was stopped at a stop sign). She had $100k in liability that her insurance company threw in right away. My uninsured / underinsured limit was $100k. That's what my insurance company threw in.

What I didn't know, not being in the insurance business, was I did not have:
Underinsured Motorist Conversion Coverage
This is extra insurance that covers costs that are higher than what the at-fault driver's insurance pays. Payments from any other source do not decrease this optional coverage.

The limit is whatever you have for liability on your own policy - in my case $1MM. The additional cost is a piss hole in the snow.

I had a sit down with him after. I certainly didn't blame him. Afterall, it was really up to me to read and understand what insurance I had. I just told him I was disappointed that he didn't include this in the package. His reply - ready for this? "The only clients he had that bought this were attorneys". I looked at him and just said, "Doesn't that tell you anything?"

After that I put my insurance out for bid with a detailed 'shopping cart' of coverage I wanted. Thinking you have a friend in you insurance agent is like thinking you have a friend at the car dealership.

 

[RCW]

Unfortunately we’re contending with a couple issues with property and automotive policies.

I’m far from an expert. Just what I’ve been seeing in my research. My homeowners policy has gone up 40% last few years.

Cost of building repairs and construction went up BIG during COVID. While materials have come down, labor also went up and stayed there.

For auto policies, I guess a similar situation.

Add to that equation that many insurance companies cover many areas.

Some carriers have incurred huge losses due to catastrophic weather events.

Their boards and stockholders are in the business to make money.

You get to help pay for someone else’s tragedy.

One of the reasons it’s so expensive to insure a house in Florida anymore, if you can at all. Several carriers just walked away from that area altogether.

 

[L35]

Self insured is definitely a thing, with homeowners at least. if you own your home free and clear it’s an option for sure. If you don’t partake in risky behavior you may get by. most never submit an insurance claim. If you own your home for 25 years you can save maybe 40k. If that one unfortunate event hits make sure you have that money squirreled away in a safe place because you are going to need it. One room and contents fire will run that and more with code compliance, fire response fee, water damage, electrical and plumbing damage, dumpster etc. if your house is rural expect total loss, into the hundreds of thousands if you can’t rebuild yourself. It’s more than fire loss, there’s the Amazon guy who slipped on your walkway and sues you civilly. busted water pipe on the 2nd floor wrecks everything below. You lose a neutral on your power service and all your household appliances get fried. burglary. I’ve seen it all. I chose to pay even though I don’t have to. I haven’t hit lotto so I know I don’t have that kind of luck to gamble. chose wisely!

 

[RCW]

@L35 brings up a good point.

Part of your policy is property damage. Part is liability.

Would want to consider the implications carefully about self insurance.

12 year old neighbor Jimmy breaks his leg on your property and his parents sue you for it.

Absent insurance, you need to be prepared to shoulder the defense out of your own pocket.

 

[Workerbee]

One thing to consider about shopping around for a better rate is its real easy for any agency to sell you a first year policy equivalent to what you have at a pretty good savings.
The reason being how they are compensated from the insurance carrier.
Several years ago an agent told me that First year policies bring about a 50% commision to the agency while renewals would bring 10%. Those percentages may be different now, but probably not. Its how they entice agencies to bring in business.
So for a one time savings to hitch your wagon to a company that is an unknown to me in how their service might be, just isnt worth it.

 

[DustyRusty]

It isn't just homeowners and auto you need to consider, it is also Medicare. My wife's mishap last September was over $500,000 to date and I have no idea of how much Medicare is covering, however, I am still on the hook for the 20% that they don't cover. I am sure glad I opted for the option that covers that 20% in full. The first 2 weeks in the trauma ER and intensive care was over $180,000 and that didn't include the 3 trauma surgeons that spent over 5 1/2 hours putting her back together. The next 2 weeks were spent in a highly specialized hospital and then moved to a rehabilitation facility that charges almost $600 a day. You never know when an accident, fire, flood, or some other catastrophic event is going to happen, and if you can't afford the loss, you had better have good insurance that is going to cover the loss, or you can be facing bankruptcy.

 

[Mark_BX25D]

I received my homeowners renewal today. I've had the same policy since 1998. Not one claim in all these years. It increased almost one thousand dollars.
At what point do you say enough is enough and just take your chances.

My MIL just got canceled by her homeowner's insurance. Like you, never a claim. So, she's shopping for a different company for her auto insurance. It was a bundled deal, and since they broke the bundle, she's not interested in continuing to do business with them.


We need some MAJOR reform.

 

[DustyRusty]

Insurance companies believe that if you never had a claim the odds of having a claim get stronger with time. That is the reason for canceling. They want to keep all the money that they have made off of you. Three years without a claim, and they will dump you. Put in a large claim, and they will dump you. You just can't win and need to shop for a new agent and insurance company periodically.

 

[GreensvilleJay]

I've got two vehicles and house renewed on same day ( my birthday). Gives me some bargaining leverage( 3 or nothing....) Also pay 100% of the premiums up front so 'they' can't say payment was late, you're not covered, sorry.......
Truck only costs me 73 cents a day.

 

[Bearcatrp]

All insurance went up, around a grand. Everyone I have talked to said same thing. We sat down with our agent about this crap and was told the hurricanes, major storms, and all other claims are outpacing what they are collecting. Some insurance companies are leaving Florida due to catastrophic claims. Other parts are for the not insure, illegal. Our insurance company, American Family, is now pushing the umbrella insurance. This covers the idiot who gets hurt on your property And tries to sue you. The insurance industry is similar to the MOB! Only difference is the insurance industry won’t kill you if you don’t pay.

 

[fatjay]

My homeowners went up. I don't have a complicated property or business. They said costs went up, and my home is valued at 3x what it was when I bought it.

So I sat down and thought about it, if my house burned down, how much would it cost me to clean it up and start over. Since I do my own work, I'm not subject to the covid labor rates, only covid material costs.

So after factoring in cost of cleanup, and rebuild, I insured it for that amount, not what I would have to pay someone else to do.

 

[DustyRusty]

You have to be very careful about "under-insuring" your home because if you have a claim, the insurance company might pay the full amount, only the percentage of the amount it is insured for vs its true value. If your home is worth say $100,000 and you only insure it for $75,000, in the event of a claim, they will only pay for 75% of the amount the claim is for. I would check with your agent to see if this is still true. I know it was true at one time. The insurance company thinks of undervaluing the property as "cheating them" out of premium money. Please let us know what your agent has to say.

 

[GrassLakeRon]

Switch Companies. I had a homeowners policy with a local agent. Was with them for 20 years. They raised my insurance rates 20% and I switched. Funny thing is it is underwritten by the same company. Car insurance is the same way. I switched over all my stuff. I got phone calls wanting me back and the promise of lower rates.....sucks to be them.

 

[mikester]

Switch Companies. I had a homeowners policy with a local agent. Was with them for 20 years. They raised my insurance rates 20% and I switched. Funny thing is it is underwritten by the same company. Car insurance is the same way. I switched over all my stuff. I got phone calls wanting me back and the promise of lower rates.....sucks to be them.

You interfered with their cottage mortgage and new luxury SUV payments...

 

[D2Cat]

All insurance went up, around a grand. Everyone I have talked to said same thing. We sat down with our agent about this crap and was told the hurricanes, major storms, and all other claims are outpacing what they are collecting. Some insurance companies are leaving Florida due to catastrophic claims. Other parts are for the not insure, illegal. Our insurance company, American Family, is now pushing the umbrella insurance. This covers the idiot who gets hurt on your property And tries to sue you. The insurance industry is similar to the MOB! Only difference is the insurance industry won’t kill you if you don’t pay.

An umbrella policy is often a good idea, it just depends on each individual's needs.

One reason insurance has gone up is the influx at the southern border. Saw a city council meeting where folks were complaining about the thousands who were in an Ohio city. Auto insurance goes up when there are large numbers of drivers without any insurance.

When there are fires like in Hawaii, or hurricanes like we've seen lately, the cost get spread out.