DIYbanter - View Single Post - State Farm Insurance vs knob & tube wiring

dpb

wrote:
....
the direct loss. Assuming the ancillary costs are 100% of that ...
....
nevertheless the premiums MUST cover all costs and some profits so the
business can remain in operation. lets not forget theres probably a LOT
of overhead ...

I just gave them 100% over a claim and showed on that basis using your
postulated numbers it only takes an annual claims rate less than otoo
0.1% to make it up. Double or triple that and actual experience is
still far below that level, I am certain for individual losses.

....

anyone who has had a claim knows what a hassle between contractors,
insurance company and mortage company...........

Well, my experience has been pretty much the direct opposite -- I have
had claims paid promptly, fairly, and all dealings have been very
professionally managed. I think it has more to do with making a
selection of an insurer with a good reputation than anything else. Of
course, I've not had a complete loss (thank goodness) but I really have
no qualms that if I did the resulting angst would be compounded by the
insurance company who underwrites our coverage.

We have been through sizable losses owing to storm damage over the last
several years in this small city where two years running small
tornadoes and major hail storms required over 80% of all roofs in the
entire town to be replaced along with sizable other wind-related damage
to the extent of several homes and businesses were completely totalled.
In the ensuing aftermath of the several boards I sit on, losses for
their facilities were as high as in the $100k range and up each year
and we had _no_ difficulties whatsoever with any of them. Of all the
stories in town, I am only aware of one particular contracted adjusting
firm that was initially very penurious in their evaluations and invoked
the ire of many who had their coverage from the firm which hired this
particular adjusting firm. After several complaints to the local agent
and confirmation by him that the adjustments did not seem in line with
actual damages and others, this firm was replaced by the underwriter
and each case revisited. I am sure there were a few cases that were
not settled to the complete satisfaction of the homeowners as is
inevitable, but certainly, overall, the situation was handled quite as
well as could be expected.

now most probably SHOP for lower cost coverage, who volunteers to pay
more to cover fires and perhaps shock hazards from old obsolete K&T
wiring

Well, as was noted in a thread in one of your previous jousting bees on
the subject, there is little definitive data that really proves
conclusively that K&T _by itself_ really raises the risk that much.
So, overall, it is highly doubtful K&T is raising your rates very much
as compared to other factors. If you're concerned that it is, then I
suggest you continue to shop for the underwriters who _do_ proscribe
against it (if you can find any) and their rates should reflect their
improved actuarial experience and be lower than their competitors to
account for it.