Switching Homeowners Insurance

[LifeIsGood]

My agent called last Friday and mentioned that I could save about $450/year by switching my homeowners, auto and umbrella to Acuity. I'm currently with Auto Owners. The savings is enticing but my house is 32 yrs old and I'm afraid an Acuity inspector will look at my house/property and require some expensive changes. I don't have any sizable trees but the driveway has some cracks that might be considered a hazard. It's on my to-do list but I don't have enough room in the budget to replace it this year.
Do anyone have personal experience with problems associated with changing carriers?

[h82goslw]

I usually shop around every couple of years for my insurance bundle (auto/home/umbrella). I’ve change companies 5 times over the years and never had anyone come to my house to do an inspection. Once made a claim on home owners and even then they didn’t send anyone to inspect.

[HomeStretch]

Home inspections by insurers seem to be more common now for houses of a certain value.

When I switched carriers to Travelers about 3 years ago, the agent never mentioned an inspection. Within 2 weeks after the policy started (and I had canceled the old insurer policy), I received a letter saying an appraisal/inspection was required to continue coverage. The inspector did a thorough walk thru asking a lot of questions about the age of roof, etc.

I recently shopped new policies and the agent said upfront that an appraisal/inspection would be required for home value of $1 million+.

[MBJ0909]

I've owned my house almost 8 years, started with the first insurance company, switched a couple years in. No inspection. Switched again a couple years ago and there was an inspection. It was exterior only and I was informed as I was purchasing the insurance that this carrier always does an inspection so I knew ahead of time it was going to happen. I was going to save $400-$500 a year so went ahead and switched. No issues were found on the inspectin. I shopped insurance again last year and this time the savings would only be around $100-200 and decided that amount of savings wasn't worth the hassle of switching and a potential inspection.

[CenTexan]

I just switched insurance. While doing papers at agent's office, she had a pop-up on screen (so she said) that I "had been randomly" selected to have an inspection of the house. Exterior only. The insurer has 2 months to do the inspection, so I don't yet know if if has been completed.

Shouldn't we be able to require the inspection before we decide to buy the insurer's policy? Seems stacked in favor of the insurer!

[LifeIsGood]

Shouldn't we be able to require the inspection before we decide to buy the insurer's policy? Seems stacked in favor of the insurer!

That's exactly what's been bothering me but other then keeping the old policy in effect until the new company does their inspection I don't know a way around this. Plus if you do make the switch, any saving realized will be eaten up by the cost of double coverage.

[Tubes]

When I switched to Amica, they did the inspection through Google street view while I was waiting on the phone.

My work friend switched too, but they required an on-site external inspection. Maybe his house didn't look good from the street?

[h82goslw]

Shouldn't we be able to require the inspection before we decide to buy the insurer's policy? Seems stacked in favor of the insurer!

That's exactly what's been bothering me but other then keeping the old policy in effect until the new company does their inspection I don't know a way around this. Plus if you do make the switch, any saving realized will be eaten up by the cost of double coverage.

Are you both saying that you don’t get a price quote until the house inspection is completed?

[CenTexan]

Shouldn't we be able to require the inspection before we decide to buy the insurer's policy? Seems stacked in favor of the insurer!

That's exactly what's been bothering me but other then keeping the old policy in effect until the new company does their inspection I don't know a way around this. Plus if you do make the switch, any saving realized will be eaten up by the cost of double coverage.

Are you both saying that you don’t get a price quote until the house inspection is completed?

No. Agent gives a quote first. But when you sign on (using the quote as your basis for price shopping), the company has the option to do an inspection (interior or exterior or both) after you are issued the "binder." That is buried in all the small print you sign. The cost of the insurance is contingent on the agent's accuracy of details regarding your house (brick, age, dog on property, etc). If you sign on and pay the quote to begin the insurance, they will start the insurance on the specified day, but if their inspection turns up misrepresented facts or undisclosed dangers (dead tree hanging over house, no railing on high deck, etc), they will increase your premium. Problem with that is the increase is often retroactive to when the policy began, thus costing you more "per day" than perhaps what your old policy was.

I had this happen twice. The first time, the agent said the distance to the fire station was x, but it really was xxx. So about 9 months into the 1 year policy, the insurance company informed me that the info/policy was incorrect and that I would need to pay xxx more to not have the policy end after 10 months (even though my initial payment was supposed to be for a full year). I complained to the agent who did nothing, accepted no responsibility, and said that I was the one who signed the forms saying all the information was correct.

The second time was similar, but I caught the agent using incorrect info for the quote/binder - saying the roof was 3 years old (it was 11) and several other things that brought down her quote to entice me to sign. When I pointed out the errors, she said it was standard practice and to "just sign the forms." I pointed out the language in the contract that said if the information was incorrect, NO CLAIMS could be made on the policy. She again said "just sign the forms" and we'll work it out later.

Lesson - be sure all your listed info is correct when given a quote. And don't trust any agent when they circumvent a detailed question. And consider an insurance agent in the same vein as a car salesperson - you alone are responsible.

[Lalamimi]

Had never had inspections. We switched from Allstate to Progressive last year, no mention of inspection. A month later, got a call, apparently their drone inspection revealed just how good a roof we had on the house, so our premium went up $45 (because replacement would be more). So I got a ding for having a 1 yr old 50 yr warrantied roof! lol

[pshonore]

Shouldn't we be able to require the inspection before we decide to buy the insurer's policy? Seems stacked in favor of the insurer!

That's exactly what's been bothering me but other then keeping the old policy in effect until the new company does their inspection I don't know a way around this. Plus if you do make the switch, any saving realized will be eaten up by the cost of double coverage.

In addition if you cancel the original policy early, your return premium may be cancelled "short rate". That means you won't get back all the "unearned" premium. Policies cancelled by the insured are usually figured that way as opposed to pro-rata. The rationale is the company has certain expenses (underwriting, policy issuance, perhaps inspection as examples) that are usually earned over the life of the policy. If you cancel early, the company is out those expenses. For a $1000 policy that is cancelled short-rate after three months you may get back $650 instead of $750. YMMV.

[ResearchMed]

The second time was similar, but I caught the agent using incorrect info for the quote/binder - saying the roof was 3 years old (it was 11) and several other things that brought down her quote to entice me to sign. When I pointed out the errors, she said it was standard practice and to "just sign the forms." I pointed out the language in the contract that said if the information was incorrect, NO CLAIMS could be made on the policy. She again said "just sign the forms" and we'll work it out later.

[emphasis added]


Did you sign that form and take that policy!?

RM

[CenTexan]

What do you think I would do?

(I found a different agent!)

[ResearchMed]

What do you think I would do?

(I found a different agent!)

Good, obviously!

But unfortunately, some people WILL sign something like:
"...the contract that said if the information was incorrect, NO CLAIMS could be made on the policy. She again said "just sign the forms" and we'll work it out later..."

under that type of condition, for a variety of reasons (not realizing there could be other choices elsewhere, feeling intimidated, >> not understanding what that bolded sentence really means, or not even reading those terms and conditions, etc...).

RM

[LifeIsGood]

Interesting about the "short rate" cancellation cost. Something else I didn't know about.
Acuity has just started writing policies in GA. My suspicious mind wonders if they tend to quote a low rate and then make up for it as a result of inspection. I'm going to sit tight with Auto Owners for another year and see what happens.
Next year, would it make sense to apply with a new carrier a couple of months before my old policy expires and see what the new company finds with their inspection before cancelling? Can you terminate a new policy if you don't agree to correct any deficiencies noted?

[brian91480]

My job requires a lot of old fashioned networking. So I know a lot of people in the city that I live in. So naturally... I know several insurance agents that represent various companies.

I have switched companies a few times in the past 15 years. But in every case... I knew my agent. Not just his / her name... but really knew them. And the handful of times that I needed attention about something... I call their cell... and the service and outcomes have all been very positive and with minimal stress.

My parents do insurance the typical way: Compare prices and sign with a company... but no relationship with their agent. Last year, they had an auto accident.
Their agent did the bare minimum. Very unhelpful, didn't seem to care... my parents were extremely frustrated over the span of several weeks. Bad outcome.

The point is... price comparing is necessary and I do it also. But get to know your agent BEFORE you need service from them... you'll probably have a much better experience when you do need the assistance.

--- Brian

[h82goslw]

The point is... price comparing is necessary and I do it also. But get to know your agent BEFORE you need service from them... you'll probably have a much better experience when you do need the assistance.

--- Brian

I don’t mean to be glib, but how would one get to know an agent before purchasing a policy….at least to the level that you’ve achieved?

[NYCaviator]

We had an inspector come out for both of our houses when we switched insurance companies. One of the houses is over 50 years old. They were both exterior only, and done when we weren’t home. The agent just came back and said we needed to increase the dwelling coverage on one of them by a small amount, and that’s it.

I’ve never had Acuity, but I did get quotes from them, and was not impressed. The quotes we got from an independent agent were vastly more expensive than the quotes we got directly from the Acuity website, and they had all of these a la carte add ons that felt like they were nickel and diming you. Things like refrigerator contents coverage and lock replacement, etc. They are also not very dog friendly.

[brian91480]

The point is... price comparing is necessary and I do it also. But get to know your agent BEFORE you need service from them... you'll probably have a much better experience when you do need the assistance.

--- Brian

I don’t mean to be glib, but how would one get to know an agent before purchasing a policy….at least to the level that you’ve achieved?

That's a fair question... as my job provides easier opportunities for this than other people may have. Maybe it is tough for people to get to know an agent before they sign up for service. But there's little reason you can't establish a relationship with an agent AFTER you sign up for services.

I was having lunch with my insurance agent a few weeks ago. I asked him point blank... what percentage of your total clients do you know... versus how many are just names on a spreadsheet? (people he inherited from other agents who quit / retired / other means).

He told me that knows about 25%... and the other 75% are total strangers. He told me that every year or so, auto-emails get sent to all clients to let them know that a meeting is available with a representative if they want to talk about their insurance coverage. He said that 90% of people ignore this. So next time... call your rep... ask for a sit-down... start to establish the relationship. A meeting doesn't have to be about up-selling you... it can be about explaining your current coverage. And the conversations expand as you start to talk about other things.

You might gain a friend... or you might get spooked that you are with an unethical person and you need to switch out... and / or you will likely get better service from the person in the future. It's human nature to want to help others... but you always dig a little deeper for your "friends".

I can't say that these relationships have helped me many times over the years... but I have had a few specific incidents in which I felt there was a positive impact.

--- Brian

[cubs1999]

The point is... price comparing is necessary and I do it also. But get to know your agent BEFORE you need service from them... you'll probably have a much better experience when you do need the assistance.

--- Brian

I don’t mean to be glib, but how would one get to know an agent before purchasing a policy….at least to the level that you’ve achieved?

Can an agent really help that much? I mean I guess if I had several properties, cars, businesses to insure so I was abig clent, then I can see it.

I've dealt with claims both 3rd party against for cars that hit me and were at fault, and dealing with my own insurance for an uninsured motorist claim. I had to involve IL department of insurance for one auto claim. Not sure how my own agent could have helped.

Claims reputation is what I would look for if I were really worried about it. Like I think it seems to be commonly known that Chubb is supposedly great to work with regrading claims.

That being said, it does help to have a good agent. I found one by luck when I switched to Shelter after my Liberty Mutual rates were set to jump 20-25% for both condo and autos. This agent was great with answering my questions in email and on the phone. Like I had some questions, which I discussed Ina thread here about how their "Uninsured Motorist" coverage didn't say "Underinsured Motorist" as well. Agent talked to underwriting and showed me in their policy paperwork exactly how it's included as part of "Uninsured motorist" in this state.

This is in contrast to this idiot I dealt with at LM. It wasn't even the agent listed on the card. Some salesperson or underling working. First mistake he maid was I asked some details about rental car coverage and he said he'd asked underwriting and never got back to me. Next, when I wanted umbrella insurance after reading threads here, this guy told me UM/UIM was included. I asked specifically as this is important to me and he said yes and I suspected he was wrong/lying bc I read LM doesn't offer that in IL. Sure enough, policy paperwork comes and it's not covered. I call him and I swear he said "Don't quote me on this, but even though it says that it's not covered, I'm sure they'll cover it."

It was at that point that I realized why he'd always call back on cell when I called main line and the automated message said each call was recorded. Initially I thought he was on the move or something but I realized he did it bc cell phone isn't recorded.

On top of that, he blew me off on cancelling it so I ended up just calling LM main number to cancel.

I was so upset I actually asked LM how to change agents but fortunately (and I'm sincere bc it motivated me to price match and I found new agent and company), the LM rates were rising so much that I had to move.

So obviously I learned I'd rather have a great agent who goes out of the way to answer my questions. Sharp contrast to one who blows me off and lies. Still not sure if it'll help me in an actual claim.

That being said, I wasted so much time navigating the claims process and involving the department of insurance with that case that I keep collision on my two old cars. I'd rather be out the extra money and have the option to just file a collision claim with my own company if I'm running into some issues with a 3rd party claim with at fault driver's insurance company.

I'll just end by saying after this story/rant, I guess one way to test potential agents is to ask some complicated questions. Maybe even ask ones you know answers to and see if agent actually makes an effort to address these questions. See if they just make up an answer or blow you off, or actually talk to claims or underwriting to get an answer.

[LifeIsGood]

Regarding agents, I've been with this agency for over 10 yrs. I've only had 1 claim during that time but they were very helpful and smoothed out a claim problem without me having to do anything. They are an independent agent and initiated the coverage comparison based on the fact that the cost of my auto premium was rather high.