State Farm - Homeowners discount :)

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dm200
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State Farm - Homeowners discount :)

Post by dm200 » Thu Aug 30, 2018 2:09 pm

Just received my annual State Farm Homeowners Insurance bill. For an insured (replacement) value of $258,000 and 1% deductible - the annual bill is only $437 - after listed discounts of $205 because we also have State Farm auto insurance (2 cars) and a claim record discount of $142.

Very Happy :)

Housedoc
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Re: State Farm - Homeowners discount :)

Post by Housedoc » Thu Aug 30, 2018 3:03 pm

Move to a hurricane, tornado, hail, fire area and then check your rates. You do have it good in the nation's capital area.

John Doe 123
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Re: State Farm - Homeowners discount :)

Post by John Doe 123 » Thu Aug 30, 2018 3:10 pm

How is this actionable? This post should be removed.

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Re: State Farm - Homeowners discount :)

Post by afan » Thu Aug 30, 2018 3:18 pm

Actionable:

"If you are shopping for property and casualty insurance, you should look at the nation's largest insurer"

Glad I could help.
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HueyLD
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Re: State Farm - Homeowners discount :)

Post by HueyLD » Thu Aug 30, 2018 3:28 pm

It is so true that homeowner insurance rates can vary widely depending on where one lives.

And it is a good idea to check out insurance companies other than the one you current have. Even with all the discounts, one can get lower cost insurance with another highly rated compony.

carolinaman
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Re: State Farm - Homeowners discount :)

Post by carolinaman » Fri Aug 31, 2018 7:24 am

Very good. My StFarm homeowners was $572 last December. Very similar valuation and have auto insurance and umbrella with them. No homeowners claims in more than 20 years. What state in you in? I am in NC.

student
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Re: State Farm - Homeowners discount :)

Post by student » Fri Aug 31, 2018 7:31 am

I also think this is actionable. If you want to save money, bundle the insurances. If you do not get a discount, ask for one. This actually made me check my insurance paperwork to make sure that I have such a discount.

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Re: State Farm - Homeowners discount :)

Post by neilpilot » Fri Aug 31, 2018 8:25 am

student wrote:
Fri Aug 31, 2018 7:31 am
I also think this is actionable. If you want to save money, bundle the insurances. If you do not get a discount, ask for one. This actually made me check my insurance paperwork to make sure that I have such a discount.
I used to think that a bundled discount would beat separate underwriters. However, when I shopped my 3 policies in 2015 I saved by writing my home with one underwriter, and my auto+umbrella with another. A check earlier this year confirmed that a 3-policy bundle with either carrier would still cost more than the setup I decided on in 2015.

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Re: State Farm - Homeowners discount :)

Post by student » Fri Aug 31, 2018 8:29 am

neilpilot wrote:
Fri Aug 31, 2018 8:25 am
student wrote:
Fri Aug 31, 2018 7:31 am
I also think this is actionable. If you want to save money, bundle the insurances. If you do not get a discount, ask for one. This actually made me check my insurance paperwork to make sure that I have such a discount.
I used to think that a bundled discount would beat separate underwriters. However, when I shopped my 3 policies in 2015 I saved by writing my home with one underwriter, and my auto+umbrella with another. A check earlier this year confirmed that a 3-policy bundle with either carrier would still cost more than the setup I decided on in 2015.
Interesting.

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Re: State Farm - Homeowners discount :)

Post by neilpilot » Fri Aug 31, 2018 8:57 am

student wrote:
Fri Aug 31, 2018 8:29 am
neilpilot wrote:
Fri Aug 31, 2018 8:25 am
student wrote:
Fri Aug 31, 2018 7:31 am
I also think this is actionable. If you want to save money, bundle the insurances. If you do not get a discount, ask for one. This actually made me check my insurance paperwork to make sure that I have such a discount.
I used to think that a bundled discount would beat separate underwriters. However, when I shopped my 3 policies in 2015 I saved by writing my home with one underwriter, and my auto+umbrella with another. A check earlier this year confirmed that a 3-policy bundle with either carrier would still cost more than the setup I decided on in 2015.
Interesting.
I had my 3 policies bundled thru Nationwide for over a decade, and after they quoted yet another premium increase in 2015 I decided to shop. It turned out GEICO auto rates blew the doors off all other quotes, and they would write decent low cost 2M umbrella, but the homeowners policy they proposed (GEICO markets other underwriters home coverage) was way too high. So went with Farmers for Home, but saved a few hundred by writing Auto+Umbrella thru GEICO. Still maintain that setup, and when I just checked with Farmers and GEICO on renewal Farmers auto was still much higher, and GEICO couldn't even quote decent home coverage.

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Re: State Farm - Homeowners discount :)

Post by open_circuit » Fri Aug 31, 2018 9:14 am

dm200 wrote:
Thu Aug 30, 2018 2:09 pm
Just received my annual State Farm Homeowners Insurance bill. For an insured (replacement) value of $258,000 and 1% deductible - the annual bill is only $437 - after listed discounts of $205 because we also have State Farm auto insurance (2 cars) and a claim record discount of $142.

Very Happy :)
Must be nice. Got my homeowners renewal packet in the mail this week (or so I thought). Instead of ~$1500-2000 / year, they are declining to write a policy because they think my 7 year old roof is too old. Not awesome to live somewhere with large hail claims...

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Re: State Farm - Homeowners discount :)

Post by wabbajack » Fri Aug 31, 2018 9:15 am

dm200 wrote:
Thu Aug 30, 2018 2:09 pm
Just received my annual State Farm Homeowners Insurance bill. For an insured (replacement) value of $258,000 and 1% deductible - the annual bill is only $437 - after listed discounts of $205 because we also have State Farm auto insurance (2 cars) and a claim record discount of $142.

Very Happy :)
I think insuring for replacement value of the house is unnecessary. If you paid $150k for your house, the default replacement value is something like $225k because that's what it would cost to rebuild. If I had a total loss, I'd rather collect the $150k and go buy another house and save money on insurance.

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Re: State Farm - Homeowners discount :)

Post by dm200 » Fri Aug 31, 2018 11:45 am

wabbajack wrote:
Fri Aug 31, 2018 9:15 am
dm200 wrote:
Thu Aug 30, 2018 2:09 pm
Just received my annual State Farm Homeowners Insurance bill. For an insured (replacement) value of $258,000 and 1% deductible - the annual bill is only $437 - after listed discounts of $205 because we also have State Farm auto insurance (2 cars) and a claim record discount of $142.

Very Happy :)
I think insuring for replacement value of the house is unnecessary. If you paid $150k for your house, the default replacement value is something like $225k because that's what it would cost to rebuild. If I had a total loss, I'd rather collect the $150k and go buy another house and save money on insurance.
There are several reasons to have full (or near full) replacement value. One is if you have a mortgage - the lender may require it. Another is that, even in a total loss, you would probably have the choice of rebuilding or a check for the replacement value.

Also, if you do not have replacement value insured (or near it), then a partial loss is not fully covered.

State farm has an annual index increasing the coverage, but sometimes that gets off - in one direction or another. Every few years, I have my agent do a replacement value calculation. There are three "quality" of replacement choices - and we pick the middle one.

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Re: State Farm - Homeowners discount :)

Post by talzara » Fri Aug 31, 2018 3:22 pm

open_circuit wrote:
Fri Aug 31, 2018 9:14 am
Must be nice. Got my homeowners renewal packet in the mail this week (or so I thought). Instead of ~$1500-2000 / year, they are declining to write a policy because they think my 7 year old roof is too old. Not awesome to live somewhere with large hail claims...
Did the letter say that your roof was 7 years old, or did it just say that it was too old? There are lots of errors in the databases.

7 years seems too picky. 30 years would make more sense.

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Re: State Farm - Homeowners discount :)

Post by talzara » Fri Aug 31, 2018 3:58 pm

dm200 wrote:
Fri Aug 31, 2018 11:45 am
Another is that, even in a total loss, you would probably have the choice of rebuilding or a check for the replacement value.
Probably not. Only a few high-value policies offer the option of walking away with a check for replacement cost.

The ISO HO-3 and HO-5 policies say:
We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss as noted in 2.a. and b. above.
State Farm's policy uses similar language.

If you walk away, you only get paid Actual Cash Value. To get replacement cost, you must actually rebuild the house.

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Re: State Farm - Homeowners discount :)

Post by dm200 » Fri Aug 31, 2018 4:04 pm

talzara wrote:
Fri Aug 31, 2018 3:58 pm
dm200 wrote:
Fri Aug 31, 2018 11:45 am
Another is that, even in a total loss, you would probably have the choice of rebuilding or a check for the replacement value.
Probably not. Only a few high-value policies offer the option of walking away with a check for replacement cost.

The ISO HO-3 and HO-5 policies say:
We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss as noted in 2.a. and b. above.
State Farm's policy uses similar language.

If you walk away, you only get paid Actual Cash Value.
To get replacement cost, you must actually rebuild the house.
I wonder how much the two amounts would vary? How might you know the Actual Cash Value? Our County real estate assessments (updated every year) show land $455,000 and house $202,000 total $657,000
Last edited by dm200 on Fri Aug 31, 2018 4:07 pm, edited 1 time in total.

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Re: State Farm - Homeowners discount :)

Post by GoldStar » Fri Aug 31, 2018 4:07 pm

Doesn't State Farm have a terrible reputation regarding paying claims? Bad ratings in this regard?
At least that's what I recall seeing last time I shopped around.
Its great to pay the cheapest rates but you want to know a claim will be paid should you ever have to make one.
Of course on the other end of the spectrum is Amica - known to pay claims out but dm200 would have to add a 0 to the numbers he's shown us.
I usually go with something in between (a few dollars more than State but not insanely priced like Amica).

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Re: State Farm - Homeowners discount :)

Post by dm200 » Fri Aug 31, 2018 4:09 pm

GoldStar wrote:
Fri Aug 31, 2018 4:07 pm
Doesn't State Farm have a terrible reputation regarding paying claims? Bad ratings in this regard?
At least that's what I recall seeing last time I shopped around.
Its great to pay the cheapest rates but you want to know a claim will be paid should you ever have to make one.
Of course on the other end of the spectrum is Amica - known to pay claims out but dm200 would have to add a 0 to the numbers he's shown us.
I usually go with something in between (a few dollars more than State but not insanely priced like Amica).
I don't think so. Never had a Homeowners claim and the several auto claims were paid promptly and fairly with State Farm.

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Re: State Farm - Homeowners discount :)

Post by GoldStar » Fri Aug 31, 2018 4:16 pm

dm200 wrote:
Fri Aug 31, 2018 4:09 pm
GoldStar wrote:
Fri Aug 31, 2018 4:07 pm
Doesn't State Farm have a terrible reputation regarding paying claims? Bad ratings in this regard?
At least that's what I recall seeing last time I shopped around.
Its great to pay the cheapest rates but you want to know a claim will be paid should you ever have to make one.
Of course on the other end of the spectrum is Amica - known to pay claims out but dm200 would have to add a 0 to the numbers he's shown us.
I usually go with something in between (a few dollars more than State but not insanely priced like Amica).
I don't think so. Never had a Homeowners claim and the several auto claims were paid promptly and fairly with State Farm.
After a google search I retract my question :)
State Farm looks solid (Amica still appears on the top - but you pay for it).

http://www.jdpower.com/business/press-r ... tion-study

You got a great rate there dm200.

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Re: State Farm - Homeowners discount :)

Post by dm200 » Fri Aug 31, 2018 4:18 pm

GoldStar wrote:
Fri Aug 31, 2018 4:16 pm
dm200 wrote:
Fri Aug 31, 2018 4:09 pm
GoldStar wrote:
Fri Aug 31, 2018 4:07 pm
Doesn't State Farm have a terrible reputation regarding paying claims? Bad ratings in this regard?
At least that's what I recall seeing last time I shopped around.
Its great to pay the cheapest rates but you want to know a claim will be paid should you ever have to make one.
Of course on the other end of the spectrum is Amica - known to pay claims out but dm200 would have to add a 0 to the numbers he's shown us.
I usually go with something in between (a few dollars more than State but not insanely priced like Amica).
I don't think so. Never had a Homeowners claim and the several auto claims were paid promptly and fairly with State Farm.
After a google search I retract my question :)
State Farm looks solid (Amica still appears on the top - but you pay for it).

http://www.jdpower.com/business/press-r ... tion-study

You got a great rate there dm200.
OK - that is what I thought. Yes - very happy :)

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Re: State Farm - Homeowners discount :)

Post by open_circuit » Fri Aug 31, 2018 4:22 pm

talzara wrote:
Fri Aug 31, 2018 3:22 pm
open_circuit wrote:
Fri Aug 31, 2018 9:14 am
Must be nice. Got my homeowners renewal packet in the mail this week (or so I thought). Instead of ~$1500-2000 / year, they are declining to write a policy because they think my 7 year old roof is too old. Not awesome to live somewhere with large hail claims...
Did the letter say that your roof was 7 years old, or did it just say that it was too old? There are lots of errors in the databases.

7 years seems too picky. 30 years would make more sense.
It said my roof was more than 10 years old. It isn't that old, since I have proof the previous owners replaced it in 2012. I assume the insurer just doesn't want to write policies here any longer.

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Re: State Farm - Homeowners discount :)

Post by talzara » Fri Aug 31, 2018 4:39 pm

dm200 wrote:
Fri Aug 31, 2018 4:04 pm
I wonder how much the two amounts would vary? How might you know the Actual Cash Value? Our County real estate assessments (updated every year) show land $455,000 and house $202,000 total $657,000
Actual Cash Value is replacement cost minus depreciation.

They will depreciate the house based on its age and its expected life. Major components like roofs and kitchens might be newer than the rest of the house, so they would be depreciated separately.

talzara
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Re: State Farm - Homeowners discount :)

Post by talzara » Fri Aug 31, 2018 4:49 pm

open_circuit wrote:
Fri Aug 31, 2018 4:22 pm
It said my roof was more than 10 years old. It isn't that old, since I have proof the previous owners replaced it in 2012. I assume the insurer just doesn't want to write policies here any longer.
In most states, an insurance company does not have to find an excuse to non-renew your policy. They can't drop you in the middle of the policy term, but they can drop you at renewal without giving a reason.

Since they gave you a reason, it gives you a basis to challenge their decision. Although they're saying 10 years, it doesn't necessarily mean you'll be dropped in 2022. They may just be doing this as a one-time screen.

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Re: State Farm - Homeowners discount :)

Post by dm200 » Fri Aug 31, 2018 5:13 pm

talzara wrote:
Fri Aug 31, 2018 4:39 pm
dm200 wrote:
Fri Aug 31, 2018 4:04 pm
I wonder how much the two amounts would vary? How might you know the Actual Cash Value? Our County real estate assessments (updated every year) show land $455,000 and house $202,000 total $657,000
Actual Cash Value is replacement cost minus depreciation.

They will depreciate the house based on its age and its expected life. Major components like roofs and kitchens might be newer than the rest of the house, so they would be depreciated separately.
Since the house is 79 years old and there have been no remodelings or additions - seems like this definition might be close to zero. That makes no sense - since I believe its market value (beyond the value of the land) would approach the $200,000 range.

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Re: State Farm - Homeowners discount :)

Post by carolinaman » Sat Sep 01, 2018 8:34 am

dm200 wrote:
Fri Aug 31, 2018 4:09 pm
GoldStar wrote:
Fri Aug 31, 2018 4:07 pm
Doesn't State Farm have a terrible reputation regarding paying claims? Bad ratings in this regard?
At least that's what I recall seeing last time I shopped around.
Its great to pay the cheapest rates but you want to know a claim will be paid should you ever have to make one.
Of course on the other end of the spectrum is Amica - known to pay claims out but dm200 would have to add a 0 to the numbers he's shown us.
I usually go with something in between (a few dollars more than State but not insanely priced like Amica).
I don't think so. Never had a Homeowners claim and the several auto claims were paid promptly and fairly with State Farm.
Long time State Farm customer. I have had auto and at least 2 homeowners claims. They were paid fairly and promptly without any hassle.

I am unaware of State Farm having a terrible reputation paying claims.

FWIW, I got quotes from 4 companies last year for my auto, home and umbrella coverage. State Farm was the cheapest, Geico a close second and Amica was by far the most expensive.

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Re: State Farm - Homeowners discount :)

Post by afan » Sat Sep 01, 2018 11:19 am

Out of stubbornness, I continue to shop our house and auto coverage every few years. It takes stubbornness because no other company has come close to State Farm.

SF purports to give us a range of discounts for long time customers, no claims, safe driving, etc. Their rates BEFORE the discounts are better than I have been quoted from any other company. After the discounts, as I said, no one else comes close.

But this is for our package. Other people find better deals with other insurers. Some find better deals without bundling their coverage. The only way to find out is to shop.

It is great to shop with an independent broker, but since some of the biggest companies, like SF, bypass the brokers, you need to shop those that sell through captive agents as well.

Rates change, companies change where they want to sell more or have fewer policies. Discounts change. You have to shop to stay on top of it.
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Re: State Farm - Homeowners discount :)

Post by willthrill81 » Sat Sep 01, 2018 12:28 pm

Like most aspects of real estate, it's all about location. We have family members in the southeast that experience tornadoes, hurricanes, and severe thunderstorms on a regular basis, and they pay double what we do for homeowners insurance despite their homes being worth half as much as ours (we're in inland northwest, and natural disasters beyond fire are rare here, and fire isn't a real problem in most developed areas).
dm200 wrote:
Fri Aug 31, 2018 5:13 pm
talzara wrote:
Fri Aug 31, 2018 4:39 pm
dm200 wrote:
Fri Aug 31, 2018 4:04 pm
I wonder how much the two amounts would vary? How might you know the Actual Cash Value? Our County real estate assessments (updated every year) show land $455,000 and house $202,000 total $657,000
Actual Cash Value is replacement cost minus depreciation.

They will depreciate the house based on its age and its expected life. Major components like roofs and kitchens might be newer than the rest of the house, so they would be depreciated separately.
Since the house is 79 years old and there have been no remodelings or additions - seems like this definition might be close to zero. That makes no sense - since I believe its market value (beyond the value of the land) would approach the $200,000 range.
Absolutely. It's nonsense that a house insured for replacement value is going to be depreciated. The insurer is obligated to rebuild the structure to its original condition (approximately).

Here's a relevant quote from Travelers on this topic.
Under most insurance policies, claim reimbursement begins with an initial payment for the Actual Cash Value (ACV) of your damage, or the value of the damaged or destroyed item(s) at the time of the loss.

If you have replacement cost coverage included on your policy, you may be able to receive additional money to cover the depreciation of these items. If this is the case, reimbursement may involve two or more payments – one for your initial payment based on the ACV of your items and then additional payment(s) once you repair and/or replace the damaged or destroyed items and provide us with documentation.
https://www.travelers.com/claims/unders ... ation.aspx

And here's another from ValuePenguin.
Sometimes called “RCV,” the replacement cost for homeowners insurance is the amount of money it would take to replace your damaged or destroyed home with the exact same or a similar home in today's market. Some home insurance policies and endorsements also cover the replacement cost of personal property. This is generally the most recommended option, since it gets homeowners closest to their living situation before a covered peril occurred.
https://www.valuepenguin.com/actual-cas ... ement-cost

That being said, I'm not sure that they'll cut you a check in lieu of actually replacing the home or contents.
Even if your policy pays replacement value, insurers usually apply "recoverable depreciation" when you file a claim. If your claim is valid, your insurer gives you an actual-value payment for the cost of replacement property, less depreciation. After you pay for replacements or repairs, you get the rest of your money. For years, policies have included clauses allowing this, but insurers didn't always invoke them. After several bad hurricanes early in the 21st century, it became common.
https://finance.zacks.com/homeowners-in ... -7597.html
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Re: State Farm - Homeowners discount :)

Post by talzara » Sat Sep 01, 2018 4:58 pm

dm200 wrote:
Fri Aug 31, 2018 5:13 pm
talzara wrote:
Fri Aug 31, 2018 4:39 pm
Actual Cash Value is replacement cost minus depreciation.

They will depreciate the house based on its age and its expected life. Major components like roofs and kitchens might be newer than the rest of the house, so they would be depreciated separately.
Since the house is 79 years old and there have been no remodelings or additions - seems like this definition might be close to zero. That makes no sense - since I believe its market value (beyond the value of the land) would approach the $200,000 range.
Your house's Actual Cash Value would be more than zero because its expected life is more than zero. However, it will be much less than market value since it is a very old house.

Many clauses in insurance policies make no sense for your individual context. They're in there for some other reason. The ACV loss settlement clause is there to deter arson.

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Re: State Farm - Homeowners discount :)

Post by talzara » Sat Sep 01, 2018 5:02 pm

willthrill81 wrote:
Sat Sep 01, 2018 12:28 pm
Absolutely. It's nonsense that a house insured for replacement value is going to be depreciated. The insurer is obligated to rebuild the structure to its original condition (approximately).
Nobody said it wasn't.

We were talking about what you get if you walk away from the house. The insurer will write you a check for Actual Cash Value, which is replacement cost minus depreciation.

You cannot recover depreciation if you don't rebuild. There are a few exceptions, mostly high-value policies.

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Re: State Farm - Homeowners discount :)

Post by willthrill81 » Sat Sep 01, 2018 5:33 pm

talzara wrote:
Sat Sep 01, 2018 5:02 pm
willthrill81 wrote:
Sat Sep 01, 2018 12:28 pm
Absolutely. It's nonsense that a house insured for replacement value is going to be depreciated. The insurer is obligated to rebuild the structure to its original condition (approximately).
Nobody said it wasn't.

We were talking about what you get if you walk away from the house. The insurer will write you a check for Actual Cash Value, which is replacement cost minus depreciation.

You cannot recover depreciation if you don't rebuild. There are a few exceptions, mostly high-value policies.
That makes little sense from the insurer's perspective because it's the same money outlay on their part either way, but I agree that it seems that is indeed the case.

Of course, you could immediately sell the newly reconstructed home if you wished.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: State Farm - Homeowners discount :)

Post by talzara » Sat Sep 01, 2018 6:38 pm

willthrill81 wrote:
Sat Sep 01, 2018 5:33 pm
That makes little sense from the insurer's perspective because it's the same money outlay on their part either way, but I agree that it seems that is indeed the case.

Of course, you could immediately sell the newly reconstructed home if you wished.
The ACV clause is in the policy to penalize arson.

Most arsonists won't build a house and then sell it. They need the money now. Their houses are usually old and run-down, so depreciation takes a very large bite out of the ACV settlement.

This is one reason that credit history is so effective at predicting fire claims. People don't usually commit arson unless they're financially desperate.

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Re: State Farm - Homeowners discount :)

Post by willthrill81 » Sat Sep 01, 2018 6:42 pm

talzara wrote:
Sat Sep 01, 2018 6:38 pm
willthrill81 wrote:
Sat Sep 01, 2018 5:33 pm
That makes little sense from the insurer's perspective because it's the same money outlay on their part either way, but I agree that it seems that is indeed the case.

Of course, you could immediately sell the newly reconstructed home if you wished.
The ACV clause is in the policy to penalize arson.

Most arsonists won't build a house and then sell it. They need the money now. Their houses are usually old and run-down, so depreciation takes a very large bite out of the ACV settlement.

This is one reason that credit history is so effective at predicting fire claims. People don't usually commit arson unless they're financially desperate.
That makes sense.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: State Farm - Homeowners discount :)

Post by Mursili » Sun Sep 02, 2018 12:35 pm

talzara wrote:
Sat Sep 01, 2018 6:38 pm
The ACV clause is in the policy to penalize arson.

Most arsonists won't build a house and then sell it. They need the money now. Their houses are usually old and run-down, so depreciation takes a very large bite out of the ACV settlement.

This is one reason that credit history is so effective at predicting fire claims. People don't usually commit arson unless they're financially desperate.
Thanks for this. This is the first time I have heard about a clear example of why credit history has anything to do with insurance. Of course, I have not spent much time thinking about it, but it is good to know just the same.
When it comes to havoc, no one wreaks like me! - Dr. Heinz Doofenshmirtz

2015
Posts: 2906
Joined: Mon Feb 10, 2014 2:32 pm

Re: State Farm - Homeowners discount :)

Post by 2015 » Sun Sep 02, 2018 1:33 pm

afan wrote:
Sat Sep 01, 2018 11:19 am
Out of stubbornness, I continue to shop our house and auto coverage every few years. It takes stubbornness because no other company has come close to State Farm.

SF purports to give us a range of discounts for long time customers, no claims, safe driving, etc. Their rates BEFORE the discounts are better than I have been quoted from any other company. After the discounts, as I said, no one else comes close.

But this is for our package. Other people find better deals with other insurers. Some find better deals without bundling their coverage. The only way to find out is to shop.

It is great to shop with an independent broker, but since some of the biggest companies, like SF, bypass the brokers, you need to shop those that sell through captive agents as well.

Rates change, companies change where they want to sell more or have fewer policies. Discounts change. You have to shop to stay on top of it.
Agreed. I shopped for better rates to no avail for several years. Then last year when my umbrella insurer cancelled my policy due to a change in underwriting, it made me so mad I used my broker to shop again. Low and behold the broker found me HOA/umbrella policies with two different insurers that was actually much less than my old insurer. It pays to always shop insurance. That said, nobody, but nobody, has been able to ever beat Wawanesa which I use for auto insurance, even when bundling.

OnTrack
Posts: 535
Joined: Wed Jan 20, 2016 11:16 pm

Re: State Farm - Homeowners discount :)

Post by OnTrack » Sun Sep 02, 2018 8:27 pm

willthrill81 wrote:
Sat Sep 01, 2018 5:33 pm
talzara wrote:
Sat Sep 01, 2018 5:02 pm
willthrill81 wrote:
Sat Sep 01, 2018 12:28 pm
Absolutely. It's nonsense that a house insured for replacement value is going to be depreciated. The insurer is obligated to rebuild the structure to its original condition (approximately).
Nobody said it wasn't.

We were talking about what you get if you walk away from the house. The insurer will write you a check for Actual Cash Value, which is replacement cost minus depreciation.

You cannot recover depreciation if you don't rebuild. There are a few exceptions, mostly high-value policies.
That makes little sense from the insurer's perspective because it's the same money outlay on their part either way, but I agree that it seems that is indeed the case.

Of course, you could immediately sell the newly reconstructed home if you wished.
Not necessarily. In some of the fire regions in the western US this summer, the landscape was so devastated that a rebuilt home on the same plot of land might have a much lower resale value, if it could even be sold. Or what about the homes destroyed by the Kilauea lava (were those houses insurable?).

sco
Posts: 913
Joined: Thu Sep 24, 2015 2:28 pm

Re: State Farm - Homeowners discount :)

Post by sco » Mon Sep 03, 2018 10:59 am

neilpilot wrote:
Fri Aug 31, 2018 8:25 am
student wrote:
Fri Aug 31, 2018 7:31 am
I also think this is actionable. If you want to save money, bundle the insurances. If you do not get a discount, ask for one. This actually made me check my insurance paperwork to make sure that I have such a discount.
I used to think that a bundled discount would beat separate underwriters. However, when I shopped my 3 policies in 2015 I saved by writing my home with one underwriter, and my auto+umbrella with another. A check earlier this year confirmed that a 3-policy bundle with either carrier would still cost more than the setup I decided on in 2015.
I saved 1k year by not bundling, it pays to shop around

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