Question about shopping for home insurance

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workingovertime
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Question about shopping for home insurance

Post by workingovertime »

Our offer was accepted and we're shopping for a home insurance.

My first instinct was to get a quote from our auto insurance provider, Progressive, to see what price we could get bundled. I went through the whole questionnaire online but it doesn't ask questions pertaining to few discounts we know we're eligible. Home inspection showed that we have roof clips which apparently is a good discount and inspector also did a wind mitigation which apparently helps also (we're in Florida if that matters). If I just call them, would they be able to apply that right away for a fresh quote? Or do I need to send them the home inspection and it takes time to process? I know this sounds crazy, but I never really trust a lot of phone representative as some just do not know what they're doing or care... but is this my only method to get an accurate quote in short of going to an agent? We're trying to get a good quote to begin with so that our closing cost and initially calculated mortgage payment is low as possible.

Seller also advertised this house as having low home insurance cost and inspection did seem to confirm that, so we know that there are discounts we need to let the insurance company know.

Thanks for the advice in advance!
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lthenderson
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Re: Question about shopping for home insurance

Post by lthenderson »

In my experience, the most accurate quote is going to be the one generated by an agent after they do a thorough evaluation of your particular situation. I treat phone quotes and especially computer quotes as a rough estimate only.
talzara
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Re: Question about shopping for home insurance

Post by talzara »

workingovertime wrote: Thu Sep 03, 2020 6:42 am My first instinct was to get a quote from our auto insurance provider, Progressive, to see what price we could get bundled. I went through the whole questionnaire online but it doesn't ask questions pertaining to few discounts we know we're eligible. Home inspection showed that we have roof clips which apparently is a good discount and inspector also did a wind mitigation which apparently helps also (we're in Florida if that matters). If I just call them, would they be able to apply that right away for a fresh quote? Or do I need to send them the home inspection and it takes time to process?
The Progressive website quotes from multiple companies, so it will not be as detailed as a single-company quote. Call and give them the quote number, and tell them that you're only interested in the Progressive quote. Then ask about discounts for roof clips and wind mitigations. They'll tell you if they want an inspection report.

Most homeowners insurers in Florida are single-state companies. They usually have enough reinsurance to survive one or two major hurricanes, but Florida got hit by four major hurricanes in 2004-2005. This could happen again.

There are two large national insurers that operate in Florida: USAA and Progressive. You're already getting a quote from Progressive, but you should also try USAA if you qualify.

Most other recognizable names are single-state subsidiaries that are not backed by the financial resources of the parent. For example, State Farm Florida is not in a pool with State Farm Fire, and it will go bankrupt if it exceeds its reinsurance limits.
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workingovertime
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Is this a good homeowner's insurance quote?

Post by workingovertime »

[Thread merged into here, see below. --admin LadyGeek]

Premium is $1,407 and I told them to bump the deductible to max 5% of home insurance policy. We're buying this home and seller apparently pays $900 currently. I expected some serious rounding down on their claim but expected lower than this estimate
What can we reasonably drop from below? We're not wealthy enough to say we can just self-insure completely but we're definitely okay with large unexpected expenses, hence higher deductible.

Edit: house cost is $245,000 in FL

Coverages:
Dwelling --------------------------------------- $195,000
Other Structures -------------------------------- $9,750
Personal Property ------------------------------ $48,750
Loss of Use -------------------------------------- $19,500
Personal Liability - Each Occurrence ------ $300,000
Medical Payments to Others - Each Person -- $5,000

Additional Coverages Included:
Ordinance or Law ----------------------------- $19,500
Water Damage Exclusion -----------------------
Limited Water Damage Cov ------------------- $10,000
Limited Fungi, Mold, Wet/Dry Rot -----------$10,000
Water backup Coverage ------------------------ $5,000

Deductible
Huriccane ------------------------------------------ $9,750
All Other Perils ------------------------------------ $2,500

Discounts
Fire Protection
Burglar Protection
Progressive Package Policy Discount Progressive Auto
Roof Wall Connection
E-Policy (paperless)
Last edited by workingovertime on Fri Sep 04, 2020 5:21 pm, edited 2 times in total.
Alan S.
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Re: Is this a good homeowner's insurance quote?

Post by Alan S. »

Your coverage limit on the dwelling is out of sync with the other limits, which typically are %s of the dwelling limit (10, 50 and 20% respectively). They suggest that the dwelling limit would be 97,500, not 195,000 unless this carrier offers non standard %s for the other coverages of half the above %s listed above, or perhaps is not offering replacement cost coverage on the dwelling.

That said, 97,500 seems excessively low unless this is a very small home. Can you explain?
randybobandy
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Re: Is this a good homeowner's insurance quote?

Post by randybobandy »

How many quotes did you get?

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Grammar and spelling matter. | Quoting the OP isn't a necessity.
runner3081
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Re: Is this a good homeowner's insurance quote?

Post by runner3081 »

This seems insanely expensive, but doesn't this almost always come down to the geographic region you are located in?
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workingovertime
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Re: Is this a good homeowner's insurance quote?

Post by workingovertime »

runner3081 wrote: Fri Sep 04, 2020 5:07 pm This seems insanely expensive, but doesn't this almost always come down to the geographic region you are located in?
Florida. I updated the original post as maybe this was a pertinent info I forgot to mention
Last edited by workingovertime on Fri Sep 04, 2020 6:38 pm, edited 1 time in total.
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workingovertime
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Re: Is this a good homeowner's insurance quote?

Post by workingovertime »

randybobandy wrote: Fri Sep 04, 2020 4:39 pm How many quotes did you get?

--Randy Bo Bandy
This is our 2nd one. The other one seemed more expensive. I've contacted couple other agents but I'm thinking it might be after Labor Day to hear back.
sport
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Re: Is this a good homeowner's insurance quote?

Post by sport »

Did you get a quote from the company that you insure your vehicles with? There is often a discount for multiple policies. You might want to also shop the package of all your policies.
runner3081
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Re: Is this a good homeowner's insurance quote?

Post by runner3081 »

workingovertime wrote: Fri Sep 04, 2020 5:22 pm
runner3081 wrote: Fri Sep 04, 2020 5:07 pm This seems insanely expensive, but doesn't this almost always come down to the geographic region you are located in?
Florida. I uploaded the original post as maybe this was a pertinent info I forgot to mention
Got it. We are in Arizona, less than half of that.
Lalamimi
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Re: Is this a good homeowner's insurance quote?

Post by Lalamimi »

We are in Houston, $1700 for a $400K house but our named storm deductible is a lot, like this one. Use a broker to find more options. And yes, you need same insurer for your cars to get a deal. ok, I see its Progressive. Try Allstate they are the lowest for us.

Water backup Coverage ------------------------ $5,000 - why. is the house old? how much does this add?
Assume you will get Flood Insurance.
Premium seems reasonable for Florida, IMO.
Put in a Ring alarm etc. tell them you have alarm system
How old is the roof?
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workingovertime
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Re: Is this a good homeowner's insurance quote?

Post by workingovertime »

Lalamimi wrote: Fri Sep 04, 2020 6:05 pm We are in Houston, $1700 for a $400K house but our named storm deductible is a lot, like this one. Use a broker to find more options. And yes, you need same insurer for your cars to get a deal. ok, I see its Progressive. Try Allstate they are the lowest for us.

Water backup Coverage ------------------------ $5,000 - why. is the house old? how much does this add?
Assume you will get Flood Insurance.
Premium seems reasonable for Florida, IMO.
Put in a Ring alarm etc. tell them you have alarm system
How old is the roof?
Thanks for the input. Progressive is the one we have auto insurance but I've contacted an Allstate agent to compare so I'll see if they give a better estimate.

Not so sure if I want to keep the water backup coverage but will find out how much this adds for sure.
No alarm system but plan on it in first month of move-in. Roof is replaced new 2016 and we even have roof clips!
home_body
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Re: Is this a good homeowner's insurance quote?

Post by home_body »

Seem to be a bit expensive. I'm paying about 1200 for 380k at 1% deductible. Try looking into bundling other products (car/umbrella) and other discounts which may bring the premiums down.
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Re: Question about shopping for home insurance

Post by LadyGeek »

workingovertime - In order to give appropriate advice, it's best to keep all the information in one spot. I merged your update back into the original question. This isn't a big deal, don't worry about it.
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talzara
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Re: Is this a good homeowner's insurance quote?

Post by talzara »

Lalamimi wrote: Fri Sep 04, 2020 6:05 pm We are in Houston, $1700 for a $400K house but our named storm deductible is a lot, like this one. Use a broker to find more options. And yes, you need same insurer for your cars to get a deal. ok, I see its Progressive. Try Allstate they are the lowest for us.
It rarely saves money to bundle in Florida. Since the hurricane risk is so high, the multipolicy discount is usually smaller than the differences in hurricane models. The top 5 auto insurers in Florida have 75% of the auto insurance market, but they have only 15% of the homeowners insurance market.

Allstate has 12% of the auto insurance market and 13% of the homeowners insurance market in Texas.

Allstate has 9% of the auto insurance market and only 2% of the homeowners insurance market in Florida.

You can still buy homeowners insurance from your auto insurance agent, but not every agent has access to every insurer. You have to shop some companies separately. Some auto insurers will still give you a discount if you buy another company's homeowners policy through them, but others won't.
talzara
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Re: Is this a good homeowner's insurance quote?

Post by talzara »

workingovertime wrote: Fri Sep 04, 2020 6:42 pm Thanks for the input. Progressive is the one we have auto insurance but I've contacted an Allstate agent to compare so I'll see if they give a better estimate.
Allstate's homeowners policies in Florida are underwritten by Castle Key, which has only 2% of the homeowners insurance market. Castle Key is also a single-state insurer that is not in a pool with Allstate, so you'd be running the risk of having it go bankrupt after a hurricane. Castle Key only has an AM Best rating of B+.

State Farm Florida would be a safer choice. State Farm Florida is also a single-state insurer that's not in a pool with State Farm's other companies, but it has an AM Best rating of A-. It also turns down a lot fewer houses than Allstate.

Progressive is much safer, because Florida is in the same pool as the other 49 states. Progressive and American Strategic both have AM Best ratings of A+.
talzara
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Re: Is this a good homeowner's insurance quote?

Post by talzara »

Alan S. wrote: Fri Sep 04, 2020 4:39 pm Your coverage limit on the dwelling is out of sync with the other limits, which typically are %s of the dwelling limit (10, 50 and 20% respectively). They suggest that the dwelling limit would be 97,500, not 195,000 unless this carrier offers non standard %s for the other coverages of half the above %s listed above, or perhaps is not offering replacement cost coverage on the dwelling.
This is a new trend in homeowners insurance. In the last 5 years, the insurance companies have introduced new products with customizable limits for Coverage B and Coverage C.

The OP has 5% for Other Structures (Coverage B), but Progressive will go as low as 2%.

The OP has 25% for Personal Property (Coverage C), but Progressive will let you opt out of coverage.
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Re: Question about shopping for home insurance

Post by tj »

talzara wrote: Thu Sep 03, 2020 9:48 am
workingovertime wrote: Thu Sep 03, 2020 6:42 am My first instinct was to get a quote from our auto insurance provider, Progressive, to see what price we could get bundled. I went through the whole questionnaire online but it doesn't ask questions pertaining to few discounts we know we're eligible. Home inspection showed that we have roof clips which apparently is a good discount and inspector also did a wind mitigation which apparently helps also (we're in Florida if that matters). If I just call them, would they be able to apply that right away for a fresh quote? Or do I need to send them the home inspection and it takes time to process?
The Progressive website quotes from multiple companies, so it will not be as detailed as a single-company quote. Call and give them the quote number, and tell them that you're only interested in the Progressive quote. Then ask about discounts for roof clips and wind mitigations. They'll tell you if they want an inspection report.

Most homeowners insurers in Florida are single-state companies. They usually have enough reinsurance to survive one or two major hurricanes, but Florida got hit by four major hurricanes in 2004-2005. This could happen again.

There are two large national insurers that operate in Florida: USAA and Progressive. You're already getting a quote from Progressive, but you should also try USAA if you qualify.

Most other recognizable names are single-state subsidiaries that are not backed by the financial resources of the parent. For example, State Farm Florida is not in a pool with State Farm Fire, and it will go bankrupt if it exceeds its reinsurance limits.

I thought Progressive only offered auto insurance and acted as an agent for home policies?
Lalamimi
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Re: Question about shopping for home insurance

Post by Lalamimi »

Just re-read your post. Why not find out who the owner/seller is insured through?
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Re: Is this a good homeowner's insurance quote?

Post by willthrill81 »

workingovertime wrote: Fri Sep 04, 2020 4:02 pm Premium is $1,407 and I told them to bump the deductible to max 5% of home insurance policy.
Many lenders don't allow the deductible on homeowner's insurance to be more than $1,000. You'd better check. If/when your lender discovers this, they may insist that you reduce the deductible or else put forced-placement insurance on the property, which is very expensive, at your expense.
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Re: Question about shopping for home insurance

Post by afan »

Interesting. I have never had a deductible anywhere near that low and no lender has ever complained. Maybe some do not care as much?
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Re: Question about shopping for home insurance

Post by willthrill81 »

afan wrote: Sat Sep 05, 2020 6:07 pm Interesting. I have never had a deductible anywhere near that low and no lender has ever complained. Maybe some do not care as much?
I've known several lenders who insisted on that, but I don't know why some have such a policy while others don't.
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Re: Question about shopping for home insurance

Post by abuss368 »

I have relied less on internet or phone quotes. We have an agent to stopped over and provided a very good quote. Plus we better understood everything.
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talzara
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Re: Question about shopping for home insurance

Post by talzara »

tj wrote: Sat Sep 05, 2020 3:10 pm I thought Progressive only offered auto insurance and acted as an agent for home policies?
Progressive purchased a controlling interest in ASI in 2014. It's now the 12th largest homeowners insurer in the United States.

ASI was a Florida-only homeowners insurer that expanded nationally. It still has 25% exposure to Florida, which is higher than Florida's 10% share of the national homeowners insurance market. However, it's safer than a single-state insurer that has 100% of its risk in Florida.

Progressive will still sell you a homeowners policy written by another company. It's not following the State Farm bundling model yet.
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Re: Is this a good homeowner's insurance quote?

Post by talzara »

willthrill81 wrote: Sat Sep 05, 2020 5:59 pm Many lenders don't allow the deductible on homeowner's insurance to be more than $1,000. You'd better check. If/when your lender discovers this, they may insist that you reduce the deductible or else put forced-placement insurance on the property, which is very expensive, at your expense.
afan wrote: Sat Sep 05, 2020 6:07 pm Interesting. I have never had a deductible anywhere near that low and no lender has ever complained. Maybe some do not care as much?
Fannie Mae used to have a $1,000 maximum deductible. It's increased the maximum deductible to 5%, but many banks have not yet updated their insurance requirements.

The OP lives in Florida, so this is unlikely to be a problem. Percentage deductibles are common in Florida, so the banks are more likely to accept them for mortgages.

If your bank is requiring a $1,000 deductible, you may be able to get them to change the policy. The Fannie Mae servicing guide has the current insurance requirements:
B-2-02: Property Insurance Requirements for Mortgage Loans Secured by a One- to Four-Unit Property (10/14/2015)

Maximum Allowable Deductible Requirements

The maximum allowable deductible is 5% of the face amount of the policy.

https://servicing-guide.fanniemae.com/T ... 4-2015.htm
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workingovertime
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Re: Question about shopping for home insurance

Post by workingovertime »

A quick update if anyone is shopping for home insurance.

So glad I shopped around because that premium of $1400 is now just above $800. Almost exact same coverage AND lower deductible. Crazy what a difference it made. I went to a local agent and he was extremely helpful and was very careful in asking every questions for potential discounts - even reached out to the inspector to clarify something which saved a good chunk AND he is connecting with our mortgage broker directly for anything else needed until closing date. Few roof features in our wind mitigation report including roof clip helped a lot in lowering premium.

FYI - first quote was from Progressive which I also have auto discount with.
Lower quote is from a company called UPC. Apparently a lot of small HO insurance companies in FL since large ones moved out after several hurricane years ago.
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