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#1
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Question on homeowner's insurance?
I have two part question about Homeowner's insurance. I just renewed my
annual homeowner's insurance with a well known insurance carrier. Is it possible to change my mind and cancel it since i just found out Friday that i can get a better deal with another insurance company or will i have to wait until it expires next year? Now here is the 2nd part of my question. The reason i found a better deal that will save me about $300 is that my friend told me his insurance agent mentioned about insuring the structure of the house is all that i need to do, not the house and land. He said most insurance companies based the insurance on the land and house when all i have to do is tell them that coverage is only needed for structure of house. Anyone care to explain the details of what exactly this meant? Thank you. |
#3
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Question on homeowner's insurance?
In article .com,
says... Now here is the 2nd part of my question. The reason i found a better deal that will save me about $300 is that my friend told me his insurance agent mentioned about insuring the structure of the house is all that i need to do, not the house and land. He said most insurance companies based the insurance on the land and house when all i have to do is tell them that coverage is only needed for structure of house. Anyone care to explain the details of what exactly this meant? Thank you. Homeowners insurance doesn't cover your land anyway -- land doesn't burn down. Your insurance covers your home. There are different ways of covering the house -- cash value pays you a depreciated value, replacement cost pays to rebuild the house. You can save money every year by buying less insurance for your house, but that doesn't mean it's a good idea. It's far more common for people to have too little insurance, not too much. Your 2000 square foot home burns down and you only have enough coverage to build a 1400 square foot replacement, or maybe enough to put a nice double-wide on the lot. You can also save money by under-insuring the contents of your house, insure your personal property at cash value instead of replacement cost, as long as you don't mind replacing everything out of thrift stores and garage sales. Now, it *is* possible your house is over-insured, it does happen. But before accepting a lower insurance value, I'd want to be sure it's based on a current, detailed replacement cost calculation using current construction costs for your market. -- is Joshua Putnam http://www.phred.org/~josh/ Updated Bicycle Touring Books List: http://www.phred.org/~josh/bike/tourbooks.html |
#4
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Question on homeowner's insurance?
Joshua Putnam wrote: In article .com, says... Now here is the 2nd part of my question. The reason i found a better deal that will save me about $300 is that my friend told me his insurance agent mentioned about insuring the structure of the house is all that i need to do, not the house and land. He said most insurance companies based the insurance on the land and house when all i have to do is tell them that coverage is only needed for structure of house. Anyone care to explain the details of what exactly this meant? Thank you. Homeowners insurance doesn't cover your land anyway -- land doesn't burn down. Exactly. ALL insurance companies look at the value of the structure seperate from the land for precisely that reason. The house is what they need to pay for if it is lost due to fire or storm. So, your friend is full of baloney. But the insurance does cover the land too, in the sense that if someone slips and falls out in your yard, or a tree gets knocked down by a storm and damages your fence, etc. they are covered. But those things are relatively minor in consideration compared to the replacement cost of the house. If you're getting 2 very different quotes, I'd make sure I understand the differences in the policies, ie are both replacement cost based, same deductibles, limits, etc and the companies track records before going with either. I think you will find that is where the real differences And yes, if you cancel a policy, the remaining premium should be refundable. Your insurance covers your home. There are different ways of covering the house -- cash value pays you a depreciated value, replacement cost pays to rebuild the house. You can save money every year by buying less insurance for your house, but that doesn't mean it's a good idea. It's far more common for people to have too little insurance, not too much. Your 2000 square foot home burns down and you only have enough coverage to build a 1400 square foot replacement, or maybe enough to put a nice double-wide on the lot. You can also save money by under-insuring the contents of your house, insure your personal property at cash value instead of replacement cost, as long as you don't mind replacing everything out of thrift stores and garage sales. Now, it *is* possible your house is over-insured, it does happen. But before accepting a lower insurance value, I'd want to be sure it's based on a current, detailed replacement cost calculation using current construction costs for your market. -- is Joshua Putnam http://www.phred.org/~josh/ Updated Bicycle Touring Books List: http://www.phred.org/~josh/bike/tourbooks.html |
#5
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Question on homeowner's insurance?
On 14 Aug 2006 06:22:59 -0700, wrote:
Joshua Putnam wrote: In article .com, says... Now here is the 2nd part of my question. The reason i found a better deal that will save me about $300 is that my friend told me his insurance agent mentioned about insuring the structure of the house is all that i need to do, not the house and land. He said most insurance companies based the insurance on the land and house when all i have to do is tell them that coverage is only needed for structure of house. Anyone care to explain the details of what exactly this meant? Thank you. Homeowners insurance doesn't cover your land anyway -- land doesn't burn down. Exactly. ALL insurance companies look at the value of the structure seperate from the land for precisely that reason. The house is what they need to pay for if it is lost due to fire or storm. So, your friend is full of baloney. But the insurance does cover the land too, in the sense that if someone slips and falls out in your yard, or a tree gets knocked down by a storm and damages your fence, etc. they are covered. But those things are relatively minor in consideration compared to the replacement cost of the house. If you're getting 2 very different quotes, I'd make sure I understand the differences in the policies, ie are both replacement cost based, same deductibles, limits, etc and the companies track records before going with either. I think you will find that is where the real differences I've got a lot of experience with insurance and I agree 100% with that last paragraph. // doug // website: MyHomeRebate.com "Buy New Homes for Less in Texas" |
#6
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Question on homeowner's insurance?
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#7
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Question on homeowner's insurance?
I thought when they meant "structure", it was the house itself. So if
my house burned down, it would be insured. Anyways, thanks guys for the info, i'll look into my policy to see what was exactly covered. |
#8
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Question on homeowner's insurance?
Oh, the reason i was looking elsewhere was that last year i had paid
$950, this year i paid $1200. I had asked my agent why it went up and he said the property value of my house went up this year. However, the city appraisal for my house was like $185,300 this year as opposed to $185,100 from last year. wrote: I thought when they meant "structure", it was the house itself. So if my house burned down, it would be insured. Anyways, thanks guys for the info, i'll look into my policy to see what was exactly covered. |
#9
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Question on homeowner's insurance?
writes:
Oh, the reason i was looking elsewhere was that last year i had paid $950, this year i paid $1200. I had asked my agent why it went up and he said the property value of my house went up this year. However, the city appraisal for my house was like $185,300 this year as opposed to $185,100 from last year. Insurance company wouldn't have any visibility or care about the city appraisal I don't think. We're seeing insurance rate increases across the board due to a certain unprecedented natural disaster down south last year that many folks seem to have forgotten about. The insurance companies paid out enormous $ in claims and are in recoup mode. Best Regards, -- Todd H. http://www.toddh.net/ |
#10
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Question on homeowner's insurance?
Todd H. wrote: writes: Oh, the reason i was looking elsewhere was that last year i had paid $950, this year i paid $1200. I had asked my agent why it went up and he said the property value of my house went up this year. However, the city appraisal for my house was like $185,300 this year as opposed to $185,100 from last year. Unless you have a history of a lot of claims, live somewhere particularly subject to major disasters or high crime, etc, $1200 sounds way out of line. For a $185K house, a homeowners policy should be less than half that. Insurance company wouldn't have any visibility or care about the city appraisal I don't think. We're seeing insurance rate increases across the board due to a certain unprecedented natural disaster down south last year that many folks seem to have forgotten about. The insurance companies paid out enormous $ in claims and are in recoup mode. Best Regards, -- Todd H. http://www.toddh.net/ |
#11
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Question on homeowner's insurance?
I am a licensed insurance broker in NY and you cannot insure your land. There are endorsements that
will cover certain trees or landscaping up to a certain distance from the dwelling. On 13 Aug 2006 22:31:07 -0700, wrote: I have two part question about Homeowner's insurance. I just renewed my annual homeowner's insurance with a well known insurance carrier. Is it possible to change my mind and cancel it since i just found out Friday that i can get a better deal with another insurance company or will i have to wait until it expires next year? Now here is the 2nd part of my question. The reason i found a better deal that will save me about $300 is that my friend told me his insurance agent mentioned about insuring the structure of the house is all that i need to do, not the house and land. He said most insurance companies based the insurance on the land and house when all i have to do is tell them that coverage is only needed for structure of house. Anyone care to explain the details of what exactly this meant? Thank you. |
#12
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Question on homeowner's insurance?
On 13 Aug 2006 22:31:07 -0700, someone wrote:
... Is it possible to change my mind and cancel it since i just found out Friday that i can get a better deal with another insurance company.... snip.... The reason i found a better deal that will save me about $300 is that my friend told me his insurance agent mentioned about insuring the structure of the house is all that i need to do, not the house and land.... So why would you have to change companies to get this advantage? Just have your existing company reduce the amount you are covered for. Reply to NG only - this e.mail address goes to a kill file. |
#13
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Question on homeowner's insurance?
In article ,
says... So why would you have to change companies to get this advantage? Just have your existing company reduce the amount you are covered for. Depends on the company, some homeowners insurance companies refuse to insure a house for less than the replacement cost they calculate. It may cost a few policies, but it cuts down on complaints and E&O suits after major losses. -- is Joshua Putnam http://www.phred.org/~josh/ Updated Bicycle Touring Books List: http://www.phred.org/~josh/bike/tourbooks.html |
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