Home Insurance Premium - How to decrease.

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ram
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Home Insurance Premium - How to decrease.

Postby ram » Sun Apr 16, 2017 1:04 pm

I have my home - auto- umbrella insurance with Amica. Over the last 8 years my home insurance rate has gone up from $650 to $1100/yr. (platinum coverage).
They have estimated the dwelling and other structure cost to be 570K which I think is too much. I presume they are considering the replacement cost and I actually do not know personally what it would be.

However if my house burns down to $0, I would not opt for rebuilding it. I would actually buy a similar house in my town which I am sure I can get for < $400K. Assuming that the land cost of my burned down house is $30K the net cost to me would be actually about 370K. Certainly I would like to insure for an amount in this range. The amount required for clean up the destroyed house will also need to be included. But even considering that I think the amount would be considerably less that 570K.

Who makes the final call regarding the insured amount. The customer or the insurance company? Any other thoughts.

I like Amica service overall and am not looking to change the insurance company.
Ram

CppCoder
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Re: Home Insurance Premium - How to decrease.

Postby CppCoder » Sun Apr 16, 2017 1:08 pm

Do you own your home outright or have a mortgage? Good luck getting the bank to agree with your plan for your burned down house. In fact, every mortgage I've had stipulates that if I choose not to carry adequate homeowner's insurance, the bank will buy it on my behalf and then charge me for it. My understanding is that they rarely shop around to find you a good price.

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Sun Apr 16, 2017 1:13 pm

I own it outright.
Ram

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dodecahedron
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Re: Home Insurance Premium - How to decrease.

Postby dodecahedron » Sun Apr 16, 2017 1:41 pm

ram wrote:I have my home - auto- umbrella insurance with Amica. Over the last 8 years my home insurance rate has gone up from $650 to $1100/yr. (platinum coverage).
They have estimated the dwelling and other structure cost to be 570K which I think is too much. I presume they are considering the replacement cost and I actually do not know personally what it would be.

However if my house burns down to $0, I would not opt for rebuilding it. I would actually buy a similar house in my town which I am sure I can get for < $400K. Assuming that the land cost of my burned down house is $30K the net cost to me would be actually about 370K. Certainly I would like to insure for an amount in this range. The amount required for clean up the destroyed house will also need to be included. But even considering that I think the amount would be considerably less that 570K.

Who makes the final call regarding the insured amount. The customer or the insurance company? Any other thoughts.


If you opt for less than the insurance company thinks the replacement cost would be, you are in trouble if your home is PARTIALLY destroyed, because they will only cover a percentage of the cost based on the replacement coverage percentage. E.g., if you have a $600K replacement cost (in their eyes) house insured for $400K and you have $100K worth of partial damage, they will cover 2/3 of your $100K restoration cost.

Most homeowner damage claims do not involve total losses.

sport
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Re: Home Insurance Premium - How to decrease.

Postby sport » Sun Apr 16, 2017 1:46 pm

State Farm reduced the premium on my HO insurance by about 15% this year. Perhaps you should shop around for better rates.

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Sun Apr 16, 2017 2:11 pm

dodecahedron wrote:
ram wrote:I have my home - auto- umbrella insurance with Amica. Over the last 8 years my home insurance rate has gone up from $650 to $1100/yr. (platinum coverage).
They have estimated the dwelling and other structure cost to be 570K which I think is too much. I presume they are considering the replacement cost and I actually do not know personally what it would be.

However if my house burns down to $0, I would not opt for rebuilding it. I would actually buy a similar house in my town which I am sure I can get for < $400K. Assuming that the land cost of my burned down house is $30K the net cost to me would be actually about 370K. Certainly I would like to insure for an amount in this range. The amount required for clean up the destroyed house will also need to be included. But even considering that I think the amount would be considerably less that 570K.

Who makes the final call regarding the insured amount. The customer or the insurance company? Any other thoughts.


If you opt for less than the insurance company thinks the replacement cost would be, you are in trouble if your home is PARTIALLY destroyed, because they will only cover a percentage of the cost based on the replacement coverage percentage. E.g., if you have a $600K replacement cost (in their eyes) house insured for $400K and you have $100K worth of partial damage, they will cover 2/3 of your $100K restoration cost.

Most homeowner damage claims do not involve total losses.

Excellent point. I did not think of that. I have written them an Email. But I think based on this point I will just pay the quoted amount. I have been very happy with Amica and it is considered an excellent insurance company on this board.
Ram

August
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Re: Home Insurance Premium - How to decrease.

Postby August » Sun Apr 16, 2017 2:14 pm

I'd also make sure your policy allows buying a different house in another location as opposed to rebuilding and whether or not this may affect your actual cash value vs replacement cost coverage. It may depend on your state. Your insurance company may not have an issue with it at all or it may result in only being able to get actual cash value for your damages. In additional some states are pay out states which means they will pay you the policy limits if the house is deemed a total loss regardless of the actual value or amount spent and others will only pay up to the cost incurred or the amount you actually spend less your deductible. keep in mind if you do not have a mortgage company, you aren't required by law to have homeowner's insurance though I'd think it's a good idea in most situations.

Other things that may lower your premium...

1. Are you in a storm prone location? Can you take a wind/hail deductible on your policy? Often for coastal areas and the midwest this is an option.
Can you raise your deductible to $5k or $10k?
2. is your home considered "green" and does your insurance company offer a discount for that?
3. have you done any repairs recently (like a new roof) that may get you a discount?
4. Can you shop around and see if another company has better rates?

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dm200
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Re: Home Insurance Premium - How to decrease.

Postby dm200 » Sun Apr 16, 2017 2:25 pm

I think you probably want the home insured for "replacement cost". With most insureres, if the home is not insured to a high percentage of replacement costs, they will not pay 100% of the partial damage.

Square footage for a similar type home is often used. In some jusisdictions, the assessment mex between house and land gives a good idea. You do not want to insure the value of the land.

Ask the insurance company to evaluate the replacement cost - and document it.

Spirit Rider
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Re: Home Insurance Premium - How to decrease.

Postby Spirit Rider » Sun Apr 16, 2017 5:58 pm

August's suggestions are all good.

Especially, the point about deductible. Insurance is to cover unexpected costs you can not handle, not to get you the least out-pocket-cost if you have a loss. In fact, you want it high enough that you don't file claims for trivial things, that will come back to bite you. I have seen people with $1M+ homes with a $2500 deductible. Nobody should have less than a 1% deductible on a house.

I would add, check your policy for additional endorsements. Many of these are unneeded and not cost effective. Insurance companies love to nickel and dime you until it adds up to real money

macaroon
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Re: Home Insurance Premium - How to decrease.

Postby macaroon » Sun Apr 16, 2017 6:10 pm

I have USAA for my homeowners insurance and they started jacking up the insured value of my home a few years ago until it got to what I considered a ridiculously high amount. When I called them to complain, they said that the only way they would lower it was if I got a replacement cost appraisal. I did so and successfully had the insured value lowered by around $60,000. The appraisal only cost a couple of hundred dollars and I've saved much more than that on premiums since then. Why not call Amica and see if they would agree to something like that?

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Sun Apr 16, 2017 8:48 pm

The deductible is $5000 on a house which I think is worth 350 K (including the $30 K land). So the deductible is about 1.5% of what I think is the cost of the house and about 0.9% of what Amica thinks it should be insured for. I will look into what I can save by making the deductible 10K. I agree that increasing deductible is a good idea. My Emergency fund can easily cover 10 K deductible.
Ram

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Toons
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Re: Home Insurance Premium - How to decrease.

Postby Toons » Sun Apr 16, 2017 8:57 pm

I raised my deductible.
:happy
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J295
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Re: Home Insurance Premium - How to decrease.

Postby J295 » Sun Apr 16, 2017 9:13 pm

Home Insurance Premium - How to decrease.
Postby ram » Sun Apr 16, 2017 1:04 pm


We raised deductibles on auto and home to save some premium $$$. Regardless of whether you choose to do this for your home, be mindful of whether your deductible is set as a flat dollar amount or a percentage of value.

For example, our home has a flat $2,500 deductible, while a couple of neighbors had a 2% of value deductible. So, when a hail storm went through and caused all of the neighborhood to have their roofs totaled (and in some cases, all windows totaled), there were material differences in deductible amounts.

Best of luck.

dwickenh
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Re: Home Insurance Premium - How to decrease.

Postby dwickenh » Sun Apr 16, 2017 10:29 pm

dodecahedron wrote:
ram wrote:I have my home - auto- umbrella insurance with Amica. Over the last 8 years my home insurance rate has gone up from $650 to $1100/yr. (platinum coverage).
They have estimated the dwelling and other structure cost to be 570K which I think is too much. I presume they are considering the replacement cost and I actually do not know personally what it would be.

However if my house burns down to $0, I would not opt for rebuilding it. I would actually buy a similar house in my town which I am sure I can get for < $400K. Assuming that the land cost of my burned down house is $30K the net cost to me would be actually about 370K. Certainly I would like to insure for an amount in this range. The amount required for clean up the destroyed house will also need to be included. But even considering that I think the amount would be considerably less that 570K.

Who makes the final call regarding the insured amount. The customer or the insurance company? Any other thoughts.


If you opt for less than the insurance company thinks the replacement cost would be, you are in trouble if your home is PARTIALLY destroyed, because they will only cover a percentage of the cost based on the replacement coverage percentage. E.g., if you have a $600K replacement cost (in their eyes) house insured for $400K and you have $100K worth of partial damage, they will cover 2/3 of your $100K restoration cost.

Most homeowner damage claims do not involve total losses.


This may be true in some states, but is not true as a blanket statement. Check with your agent and insurance company. Adjustment of replacement cost to a reasonable level is often obtained through the agent that originally sold the policy. If the agent is not willing to accommodate your request, find an agent that will work with you.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

August
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Re: Home Insurance Premium - How to decrease.

Postby August » Sun Apr 16, 2017 10:40 pm

True, while some homeowner's insurance sometimes has a co-insurance clause depending on the state, I have never seen it enforced. Co-insurance is typically only used on commercial policies. As always it depends on your particular policy. :)

Longtermgrowth
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Re: Home Insurance Premium - How to decrease.

Postby Longtermgrowth » Sun Apr 16, 2017 11:27 pm

Might be worth going through a quote with another insurance company to come up with replacement cost amount, then go over same information again with current insurer stating other quotes. Over the last number of years (5), I have gotten a number of quotes, and all of them come out to the same replacement cost number after giving all information about the home.

Interestingly enough, current insurance rates keep going up year after year stating rising costs of construction...

Cigarman
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Re: Home Insurance Premium - How to decrease.

Postby Cigarman » Mon Apr 17, 2017 6:03 am

I have Amica also and they routinely raise the replacement value of the home, so much so that it was over the top. A quick chat on the phone with them and we reduced the replacement value of the home (not including contents) and reduced my rate.

They are not unique in this area. In NC, like I am sure many other states, rates are regulated. If they can't get a base rate increase, they simply raise the value of your home and get an increase that way. They do the math and most of us won't challenge it so they come out way ahead.

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Re: Home Insurance Premium - How to decrease.

Postby pshonore » Mon Apr 17, 2017 8:07 am

dodecahedron wrote:
Most homeowner damage claims do not involve total losses.

Perhaps not most but certainly enough. Just watch the news and see how many houses are destroyed by wildfires and tornados. A 500k house that burns to the ground will likely cost the company close to $ 1 Mill by the time you include the contents, waste removal, and addtional living expense while you rebuild, etc. It doesn't take many of those to significantly impact the bottom line

kmurp
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Re: Home Insurance Premium - How to decrease.

Postby kmurp » Mon Apr 17, 2017 9:15 am

$1100 on a 500k home seems pretty reasonable. I pay that much for a 300k home after shopping around last year and switching everything from Geico to Liberty Mutual.

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jharkin
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Re: Home Insurance Premium - How to decrease.

Postby jharkin » Mon Apr 17, 2017 9:21 am

I am an Amica customer as well - have been for over 20 years.

$1100 coverage on a house with 570k replacement value sounds cheap to me. I just got my renewal for this year, $1136 and my new replacement value is $331k. I have a $2500 deductible, the platinum coverage like you have (130% payout, replacement cost for personal property, etc), plus riders for scheduled property and sump pump damage.

My premium went up $93 over last years, and they raised the replacement value 12k. FWIW I also had a moderate (15k) claim last year for storm damage. Doesn't seem to have effected the rates at all....

Also, FWIW Amica's 331k replacement cost estimate seems quite reasonable in relationship to my tax assessment (310k), and Zillow's current market estimate ($375k). Is your insurance value wildly different from your market value?




You can talk to them about changing deductibles, appeal the replacement value, drop the platinum package, etc. You can also change carriers of course. However, having made a few claims with them over the years I'm not sure Id want to trade a couple hundred $$ savings for having to deal with the claim service horror stories I hear from customers of other companies..

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Re: Home Insurance Premium - How to decrease.

Postby pshonore » Mon Apr 17, 2017 9:30 am

One factor folks frequently fail to mention with Homeowners is the Fire protection class where you live. (usually assigned by the Fire Rating Bureau). If you live a 1/4 mile from a manned fire station in an area with fire hydrants, you'll pay significantly less than someone who lives where there are volunteer fire departments who must carry water to a fire and find a pond or other water source to refill as necessary.

Danzangdc
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Re: Home Insurance Premium - How to decrease.

Postby Danzangdc » Mon Apr 17, 2017 11:49 am

I called my home insurer once and found out what my coverage was and asked them to lower it. They did, no problem. They did however tell me that my mortgage lender required insurance coverage to a certain multiple of the mortgage value. So, I had the amount reduced to exactly that number. Premium went down accordingly.

Since you own your own home OP, I don't see why you can't dictate your coverage. Also, if you call and say you are checking around town on insurance pricing and want to see if they can get your premium lower, they will pull some levers to keep you as a client.

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Re: Home Insurance Premium - How to decrease.

Postby djpeteski » Mon Apr 17, 2017 12:46 pm

sport wrote:State Farm reduced the premium on my HO insurance by about 15% this year. Perhaps you should shop around for better rates.


If you pay $1 for State Farm Insurance, you are paying too much. They simply do not pay claims.

I about cried the last time I was run into after a person ignored a stop sign. Despite a city employee as a witness, they only paid to repair my car once I retained a lawyer and threatened to take them to court.

Previous to that, when I was their customer, I had to sue them to pay a claim.

pshonore
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Re: Home Insurance Premium - How to decrease.

Postby pshonore » Mon Apr 17, 2017 1:02 pm

Danzangdc wrote:I called my home insurer once and found out what my coverage was and asked them to lower it. They did, no problem. They did however tell me that my mortgage lender required insurance coverage to a certain multiple of the mortgage value. So, I had the amount reduced to exactly that number. Premium went down accordingly.

Since you own your own home OP, I don't see why you can't dictate your coverage. Also, if you call and say you are checking around town on insurance pricing and want to see if they can get your premium lower, they will pull some levers to keep you as a client.
You may want to google "co-insurance clause". Insuring you home for less than 80% of its value (not the mortgage balance) can have consequences.

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dm200
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Re: Home Insurance Premium - How to decrease.

Postby dm200 » Mon Apr 17, 2017 3:18 pm

djpeteski wrote:
sport wrote:State Farm reduced the premium on my HO insurance by about 15% this year. Perhaps you should shop around for better rates.

If you pay $1 for State Farm Insurance, you are paying too much. They simply do not pay claims.
I about cried the last time I was run into after a person ignored a stop sign. Despite a city employee as a witness, they only paid to repair my car once I retained a lawyer and threatened to take them to court.
Previous to that, when I was their customer, I had to sue them to pay a claim.


No homeowner claims experience with State Farm (homeowner 38 years), but no significant problems with auto (45 years). The only sight issue I had many, many years ago was a dispute about whether damage was collision or comphrhensive (had different deductibles at the time). I escalated the issue and it was changed to my satisfaction. All other claims and subsequent repairs with State Farm have been very satisfactory.

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jharkin
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Re: Home Insurance Premium - How to decrease.

Postby jharkin » Mon Apr 17, 2017 3:43 pm

pshonore wrote:One factor folks frequently fail to mention with Homeowners is the Fire protection class where you live. (usually assigned by the Fire Rating Bureau). If you live a 1/4 mile from a manned fire station in an area with fire hydrants, you'll pay significantly less than someone who lives where there are volunteer fire departments who must carry water to a fire and find a pond or other water source to refill as necessary.


Excellent point! My house is 6/10s of a mile from the central fire house and the nearest hydrant is 10ft across the street from my front lawn. Probably helps keep my rate down :)

sport
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Re: Home Insurance Premium - How to decrease.

Postby sport » Mon Apr 17, 2017 3:47 pm

djpeteski wrote:
sport wrote:State Farm reduced the premium on my HO insurance by about 15% this year. Perhaps you should shop around for better rates.


If you pay $1 for State Farm Insurance, you are paying too much. They simply do not pay claims.

I about cried the last time I was run into after a person ignored a stop sign. Despite a city employee as a witness, they only paid to repair my car once I retained a lawyer and threatened to take them to court.

Previous to that, when I was their customer, I had to sue them to pay a claim.

There was an earlier thread about State Farm. Most of the posters expressed satisfaction.

angelescrest
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Re: Home Insurance Premium - How to decrease.

Postby angelescrest » Mon Apr 17, 2017 5:19 pm

Funny, I am with Amica and you beat me to posting the same thing. My homeowners is like $1400 or so, a very quick jump from $800 that it used to be. My home value is only 250 at most. I contacted them about it, and they said it was indeed a huge jump. After saying they would try to figure what was going on, they have never gotten back to me and can't explain it.

So I am very much looking to jump ship, as it's such a major increase. I love their service, but these rates are unreasonable. Who else is good for homeowner's?

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Mon Apr 17, 2017 9:31 pm

pshonore wrote:One factor folks frequently fail to mention with Homeowners is the Fire protection class where you live. (usually assigned by the Fire Rating Bureau). If you live a 1/4 mile from a manned fire station in an area with fire hydrants, you'll pay significantly less than someone who lives where there are volunteer fire departments who must carry water to a fire and find a pond or other water source to refill as necessary.

The neighborhood fire hydrant is on my property. The fire dept is .75 to 1 mile away. ( not volunteer). So presumably that is not an issue.
Ram

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Mon Apr 17, 2017 9:37 pm

jharkin wrote:I am an Amica customer as well - have been for over 20 years.

$1100 coverage on a house with 570k replacement value sounds cheap to me. I just got my renewal for this year, $1136 and my new replacement value is $331k. I have a $2500 deductible, the platinum coverage like you have (130% payout, replacement cost for personal property, etc), plus riders for scheduled property and sump pump damage.

My premium went up $93 over last years, and they raised the replacement value 12k. FWIW I also had a moderate (15k) claim last year for storm damage. Doesn't seem to have effected the rates at all....

Also, FWIW Amica's 331k replacement cost estimate seems quite reasonable in relationship to my tax assessment (310k), and Zillow's current market estimate ($375k). Is your insurance value wildly different from your market value?




You can talk to them about changing deductibles, appeal the replacement value, drop the platinum package, etc. You can also change carriers of course. However, having made a few claims with them over the years I'm not sure Id want to trade a couple hundred $$ savings for having to deal with the claim service horror stories I hear from customers of other companies..

I agree that the quote is reasonable. But no harm in trying to reduce it. I have never had any claims for the home. But my auto claims have been handled promptly and satisfactorily by email by Amica. I am not looking to change Amica. They pay claims promptly without any hassle and that is worth a higher premium to me.

The city estimates my home to be about 330 K. I estimate it at about 350 K. Amica estimates it to be 570 K.
Ram

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Mon Apr 17, 2017 9:44 pm

J295 wrote:
Home Insurance Premium - How to decrease.
Postby ram » Sun Apr 16, 2017 1:04 pm


We raised deductibles on auto and home to save some premium $$$. Regardless of whether you choose to do this for your home, be mindful of whether your deductible is set as a flat dollar amount or a percentage of value.

For example, our home has a flat $2,500 deductible, while a couple of neighbors had a 2% of value deductible. So, when a hail storm went through and caused all of the neighborhood to have their roofs totaled (and in some cases, all windows totaled), there were material differences in deductible amounts.

Best of luck.

Current deductible is $5000. ( set dollar amount). I have asked for quotes for 10 K and 20 K deductible.
Ram

AnimalSpirits
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Re: Home Insurance Premium - How to decrease.

Postby AnimalSpirits » Mon Apr 17, 2017 9:58 pm

Hard to know if you're getting a good deal without more than one quote. How do you know if are other options for your plan to buy a different house for a lower price, where it would make sense to use Actual Cash Value or even an Agreed Amount valuation? Maybe the call-center ding-dongs will know what that is.

Or you could go to an an experienced independent agent to review your situation and at the least be better informed.

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jharkin
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Re: Home Insurance Premium - How to decrease.

Postby jharkin » Tue Apr 18, 2017 6:56 am

ram wrote:The city estimates my home to be about 330 K. I estimate it at about 350 K. Amica estimates it to be 570 K.


That seems to be the disconnect. I dont see such a variation. Question is why?

Where I live, tax valuations seems to be fairly close to actual market values( A little less, but not a huge gap). But I know in some locales there can be a huge spread and tax assessments dont update until a sale. Are you confident that the 350 number is a solid market value? Do you have data to back it up?


I'd figure that out and then appeal the value with Amica. I agree something seems off there if the cost to rebuild is so much higher than the resale value....

sport
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Re: Home Insurance Premium - How to decrease.

Postby sport » Tue Apr 18, 2017 9:30 am

jharkin wrote:
ram wrote:The city estimates my home to be about 330 K. I estimate it at about 350 K. Amica estimates it to be 570 K.


That seems to be the disconnect. I dont see such a variation. Question is why?

Where I live, tax valuations seems to be fairly close to actual market values( A little less, but not a huge gap). But I know in some locales there can be a huge spread and tax assessments dont update until a sale. Are you confident that the 350 number is a solid market value? Do you have data to back it up?


I'd figure that out and then appeal the value with Amica. I agree something seems off there if the cost to rebuild is so much higher than the resale value....

Insurance values are supposed to be the cost to rebuild, not the market price. It is possible that rebuilding could cost much more than the market price.

ralph124cf
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Re: Home Insurance Premium - How to decrease.

Postby ralph124cf » Tue Apr 18, 2017 3:10 pm

One additional thing that causes increased rebuilding costs is updated building codes. If you have a partial loss, anything redone must be to the new code. Perhaps you would have to replace Romex with conduit, or replace certain plastic pipe with a different plastic, or copper.

Ralph

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jharkin
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Re: Home Insurance Premium - How to decrease.

Postby jharkin » Tue Apr 18, 2017 5:28 pm

ralph124cf wrote:One additional thing that causes increased rebuilding costs is updated building codes. If you have a partial loss, anything redone must be to the new code. Perhaps you would have to replace Romex with conduit, or replace certain plastic pipe with a different plastic, or copper.

Ralph


In that case my rebuild cost should be through the roof - building codes didn't exist when my house was built.

Small changes like replacing wiring are not going to make a 5 or 6 figure difference in partial rebuild cost.....

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ram
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Re: Home Insurance Premium - How to decrease.

Postby ram » Wed Apr 19, 2017 11:06 pm

I emailed Amica about the discrepancy. Their reply :

They can reduce the dwelling coverage limit to $405K (from 570 K) and still continue with the replacement cost policy. ( The platinum policy that I have can pay upto 130% of this amount for replacement)

Their loss settlement is to rebuild the home. The type of policy that I described (buying another home in case of 100% loss) would be a market value policy, which they do not offer.

1) Dropping the dwelling coverage limit to $405k, would save me about $240.

2) Increasing the deductible from 5 K to 10 K would save me another $100. ( I am planning on opting for this)

3)Increasing it to 15 K would save an additional $55.

Doing 1) and 2) will drop my premium from 1100 to 760, and that seems satisfactory to me.

Any thoughts/ suggestions.
Ram

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Earl Lemongrab
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Re: Home Insurance Premium - How to decrease.

Postby Earl Lemongrab » Thu Apr 20, 2017 10:10 am

ram wrote:2) Increasing the deductible from 5 K to 10 K would save me another $100. ( I am planning on opting for this)

It would take you 50 years to recoup if you have a claim where you absorb the entire deductible difference.
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ram
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Location: Midwest

Re: Home Insurance Premium - How to decrease.

Postby ram » Thu Apr 20, 2017 6:09 pm

Earl Lemongrab wrote:
ram wrote:2) Increasing the deductible from 5 K to 10 K would save me another $100. ( I am planning on opting for this)

It would take you 50 years to recoup if you have a claim where you absorb the entire deductible difference.

Good point. Will take that in consideration before making the final decision. Thanks.
Ram

AlwaysBeClimbing
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Joined: Fri Mar 31, 2017 10:39 am

Re: Home Insurance Premium - How to decrease.

Postby AlwaysBeClimbing » Thu Apr 20, 2017 9:35 pm

ram wrote:
Earl Lemongrab wrote:
ram wrote:2) Increasing the deductible from 5 K to 10 K would save me another $100. ( I am planning on opting for this)

It would take you 50 years to recoup if you have a claim where you absorb the entire deductible difference.

Good point. Will take that in consideration before making the final decision. Thanks.



Something else to consider is, if you have a loss that is say 6 or 7 k(or even a bit more), will you be more likely to eat the entire loss or file a claim, since your already into it for the first 5k? The insurance company may not raise your rates for the first claim, but if you have a second within a few years of the first, you can count on a rate increase at the least, if not outright cancellation of the policy(and just maybe that second potential claim is one that you really don't want to eat the entire cost of). So you need to ask yourself what are the odds of having a claim within the range of say 7(or whatever number you choose) to 10 k? If you can easily cover a 10K deductible from emergency fund...

Nova1967
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Re: Home Insurance Premium - How to decrease.

Postby Nova1967 » Fri Apr 21, 2017 7:37 am

I have a 25k deductible for Wind , even if I have to use it once in 20 years my savings will exceed my deductible.

pdanet
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Re: Home Insurance Premium - How to decrease.

Postby pdanet » Fri Apr 21, 2017 9:42 am

ram wrote:I have my home - auto- umbrella insurance with Amica. Over the last 8 years my home insurance rate has gone up from $650 to $1100/yr.


You can eliminate it - by not renewing the $1100/yr premium.

Couple of friends that I've know have done this as soon as they paid off their home - of-course, it really DEPENDS on the geographic location and if you are NOT prone to natural calamities etc.

They have gone without home insurance for 10 years or so and already have saved about 20k+ or so...

We live in a 100 year flood zone so recently we got rid of flood insurance and saved $250/yr on premiums.


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