Author Topic: Homeowner's insurance up $100, can I make some cuts?  (Read 3922 times)

Bettis

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Homeowner's insurance up $100, can I make some cuts?
« on: July 08, 2015, 11:24:33 AM »
I just got a policy renewal packet in the mail for my Homeowner's Policy.

First off, I do have a mortgage so I'm sure there are things the bank will not let me get rid of.  Also, I don't want to be stupid and drop something I may need.  I am thinking that I'm covering loss to objects in my house that I could easily self insure.

The insurance was $721 last year and is $819 this year.  I have not filed any claims and I do see discounts/credits given for that kind of stuff so it likely isn't a missing discount.

I don't know how specific I should get but I'll start here:

Personal Property Replacement Cost Loss Settlement $92
Mariner Plus Endorsement $125
Specified Additional Amount of Insurance for Coverage A - Dwelling - Massachusetts: Additional Amount of Insurance 50% $37
Catastrophe Premium $356
Sum of my discounts/credits ($367)

Total of $819

Some of the Mariner Plus stuff is liability(Coverage E) and medical payments to others(Coverage F) that I would not want to skimp on.  Some of it(Looks like Coverage C) refers to stolen property, watercraft (don't own any), trailers (don't own any)

The packet doesn't really explain what each Coverage letter is.  It seems to mention updates to the wording of the policy but at 15 pages, I think it's more of a summary.

Also, I don't have car insurance with this company.  It may be because they don't offer it, I'm not totally sure.  It's Narragansett Bay Insurance Company (Auto is through Commerce)  We use the same agent for both policies but I don't see any discount for combining home and auto.

Any tips?

frugaliknowit

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #1 on: July 08, 2015, 11:29:15 AM »
Shop it.  It should take very little time to do so. 

Bettis

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #2 on: July 08, 2015, 11:54:05 AM »
I've thought of doing this but have never tried it(with any type of insurance) so I am pretty clueless.  The renewal doesn't go into affect until mid August.  I want to be sure that when I compare, I'm not paying a lower price but missing out on something key that would screw me later.  My car insurance also renews soon(September 1st) but I can understand that a little easier than the homeowner's stuff.

Any good how to shop for insurance without screwing yourself FAQs out there? :)

Sibley

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #3 on: July 08, 2015, 12:18:56 PM »
Talk to multiple insurance companies. Tell them you're looking for homeowner's insurance, after the first one you'll know what information you need to provide. Get descriptions of all coverage lines.

Once you have however many quotes, sit down and compare all of them at once. Since you'll have the coverage details you'll know where there's differences.

Retire-Canada

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #4 on: July 08, 2015, 12:20:28 PM »

Any good how to shop for insurance without screwing yourself FAQs out there? :)

How would you screw yourself?

I had the same issue as you did and just called a couple other brokers. Gave them my details and got quotes back. My initial insurance was no more expensive than the new quotes so I kept it.

I have a mortgage otherwise I'd only insure my contents and have liability insurance. I live in an old house and don't really care if it burns up or falls down.

Bob W

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #5 on: July 08, 2015, 12:53:41 PM »
When you shop be sure to go with the highest deductible allowed by your mortgage company.   Also be sure you are not over insuring your property  --- Generally you do no insure for the lot, foundation, driveway, sewer hook ups etc..   

For example -- our house is appraised at 220.   I subtracted 30 for the lot,  25 for the driveway/garage floor and foundation and 10 for the septic and well.   I added 20 for demolition.   The total insured price is 175.   So that is 45 below the total value. 

Our home is 2200 above and 900 sq ' in the walkout.   I figure about 80 per sq foot above and 40 below for rebuilding on an existing foundation and poured concrete basement.   

The odds of a total loss are pretty slim.   

I ended up going with a County Mutual that was 1/3rd the cost of the big nationals as we are in a zone 9/10 fire zone.

You can also ask insurers is if they give a discount for security systems that report directly to fire house.   It may be worth it to you to spend $25 a month on a security system if you save $15 a month on insurance.  Yep,  I know the total cost is more but you will be more secure. 

Bettis

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #6 on: July 08, 2015, 01:36:47 PM »
Thanks Bob, this helps a lot.  More specifics below because I missed a page reading through my packet

Property Coverage w/Policy Limits
Coverage A - Dwelling - $298K (House is Zillow estimated for $292K which must include the 1/3 acre land)
Coverage B - Other Structures - $29.8K (3 sheds in varying conditions)  I do have a septic system, would that be included here?
Coverage C - Personal Property - $208.6K (WTF am I paying for here)
Coverage D - Loss of Use - $89.4K

Liability Coverage w/Policy Limits
Coverage E - Personal Liability - $500K (likely not touching this, I'm no millionaire)
Coverage F - Medical Payments - $5K (seems low actually)

The deductible is $500

Tjat

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #7 on: July 08, 2015, 08:09:46 PM »
Keep in mind coverage a has little relevance to your zillow value. It is the cost to replace your house. Septic would also be covered here.

Coverage b is standard af 10% cov a. Cov c is normally 50% of cov a. This is basically the value of your stuff so make sure you are comfortable with having higher than normal limits. Lowering likely won't save you much though.  Important thing with cov c is to have personal property replacement cost.  Other limits look fine.

The big opportunity is that your talking about self insurance but you have a tiny 500 deductible.  Increasing to 1000, 1500, or 2500 will net you large savings. Rate is pretty low so shopping may not help to much but worth a try. Main thing is raise that deductible
« Last Edit: July 08, 2015, 08:14:06 PM by Tjat »

ltt

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Re: Homeowner's insurance up $100, can I make some cuts?
« Reply #8 on: July 08, 2015, 08:31:19 PM »
Raise deductible.

Switch insurance companies if need be.

Put your car and homeowners with same insurance company.

If you are working with an agent who deals with several insurance companies, tell your agent the price is too high and you want a policy which doesn't cost you so much.