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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: BuckeyeFinance on November 02, 2018, 12:43:53 PM

Title: Help me get my home insurance rate down
Post by: BuckeyeFinance on November 02, 2018, 12:43:53 PM
I'm currently paying $1,690 for home insurance on a house I bought this year for just over 400k. Auditor's website shows ~200k land value and ~200k improvement value but all of the quotes I get have a rebuild value of around 350k and personal property coverage of 250k. This seems RIDICULOUSLY high. The house is ~2,700 square feet. The quotes I've gotten won't allow a deductible over 2.5k for whatever reason. Why does it seem like I'm paying more than everyone else?!

Title: Re: Help me get my home insurance rate down
Post by: Duke03 on November 02, 2018, 02:11:38 PM
I'm currently paying $1,690 for home insurance on a house I bought this year for just over 400k. Auditor's website shows ~200k land value and ~200k improvement value but all of the quotes I get have a rebuild value of around 350k and personal property coverage of 250k. This seems RIDICULOUSLY high. The house is ~2,700 square feet. The quotes I've gotten won't allow a deductible over 2.5k for whatever reason. Why does it seem like I'm paying more than everyone else?!


Because you are.  What state do you live in?  That has a lot to do with insurance.  I'm in TX with a house valued at about 400k.  I have a 1k deductible across the board and I pay $925 a year.
Title: Re: Help me get my home insurance rate down
Post by: Dicey on November 02, 2018, 03:10:06 PM
We have insurance from a company few have heard of. It's based on my husband's profession (he's considered a Civil Service Employee), and we found it by using a really smart Independent Insurance Agent. We have policies on five different homes at rates that blow away the "competition".
Title: Re: Help me get my home insurance rate down
Post by: Khaetra on November 02, 2018, 03:35:56 PM
I WISH I could pay only $1690 for insurance.  This year I payed just over $3K and I am sure when it renews in January that will shoot up.
Title: Re: Help me get my home insurance rate down
Post by: BuckeyeFinance on November 02, 2018, 08:03:08 PM
I'm currently paying $1,690 for home insurance on a house I bought this year for just over 400k. Auditor's website shows ~200k land value and ~200k improvement value but all of the quotes I get have a rebuild value of around 350k and personal property coverage of 250k. This seems RIDICULOUSLY high. The house is ~2,700 square feet. The quotes I've gotten won't allow a deductible over 2.5k for whatever reason. Why does it seem like I'm paying more than everyone else?!


Because you are.  What state do you live in?  That has a lot to do with insurance.  I'm in TX with a house valued at about 400k.  I have a 1k deductible across the board and I pay $925 a year.
Ohio. 925 sounds fantastic.
Title: Re: Help me get my home insurance rate down
Post by: BuckeyeFinance on November 02, 2018, 08:04:05 PM
I WISH I could pay only $1690 for insurance.  This year I payed just over $3K and I am sure when it renews in January that will shoot up.
What is your deductible, home price, and state?
Title: Re: Help me get my home insurance rate down
Post by: nwhiker on November 02, 2018, 11:08:16 PM
The coverage for the home is based on the cost to replace the home based on a price per square foot not market value. Unfortunately the pricing for insurance and the calculation for personal property is set at 70% - 80% of the home value. Because you obviously must stuff your home full of stuff. There should be a cost for each coverage, including liability. What is the price for each coverage?
Title: Re: Help me get my home insurance rate down
Post by: MrSal on November 03, 2018, 09:36:43 AM
I pay 240$ on home insurance. 200k rebuilding cost ... 1M liability ... identity theft fraud covered up to 25,000 and so forth. I have 5k deductible. They blew it out of the water compared to other insurers. I have home and auto witht them.

It';s just normal old Farmers Insurance.
Title: Re: Help me get my home insurance rate down
Post by: Sibley on November 04, 2018, 02:18:54 PM
I was able to customize the personal property value, can you adjust it? Also, dig into the details on the replacement value. I have an old house that has plaster. If you calculate replacement value assuming you'll put plaster in, it's significantly more expensive than drywall. Details like that make a difference.
Title: Re: Help me get my home insurance rate down
Post by: MissNancyPryor on November 04, 2018, 02:41:54 PM
Dave Ramsey has recommended Zander Insurance for years.  I don't use them as my broker but did engage their website to check why my rates went up 16% recently for no apparent reason.  Rates came back instantly and without hassles.  I just provided my e-mail and the standard details and found that I had several options that were much less than what I was paying.  I then went to my own local insurance broker and announced that he needed to find me a better company because I had gotten these quotes and knew I was getting boned.

I switched to a new company and went down 25%.  That was an additional savings over what I was paying before for identical coverage.   The new company was not among those pulled by Zander but with the knowledge I gained using their site I was clear that I could do better than what I had.  I liked Zander because they do not follow up with sales pitches and don't pass around your information to cold callers.  It was a good research tool.