Double check your insurance policy!!!

[Dusten]

Sad. It can happen to all of us.. but how can we go about looking into it without getting taken over by the insurance companies? It seems like every time we go to reevaluate our insurance it's time to go up considerably and come to find out we really didn't get that much coverage. Back in the day to insurance companies and their agents had your back now it's just a freaky business where they can up your rates and still have hidden loopholes. So to educate all of us and for those who know a lot of this, could you post some tips on how to go bad it without getting taken advantage of by the insurance agent?

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I called my agent, doubled the value on my out building, upped my personal property and paid the small increase.

 

[aafadca]

Has any had any dealings with National Grange? An agent gave me a very low quote from them. I read a few reviews and they weren't very good. Anyone here?
Also from the insurance people here. What should a person look for/request in a new policy?

 

[Hawke]

" What should a person look for/request in a new policy?"

Use an Insurance Broker, not an Agent. A Broker works for you, an Agent works for the Insurer. If you tell a Broker what you want covered, and they get it wrong, they have a problem, not you. Their Professional Indemnity policy should pay. An Agent gets it wrong, you have the problem.

In respect of the policy, get a policy that gives full Accidental Damage cover, not just specific perils. You want Replacement payment, not indemnity (current value) conditions.

 

[yeldogt]

" What should a person look for/request in a new policy?"

Use an Insurance Broker, not an Agent. A Broker works for you, an Agent works for the Insurer. If you tell a Broker what you want covered, and they get it wrong, they have a problem, not you. Their Professional Indemnity policy should pay. An Agent gets it wrong, you have the problem.

In respect of the policy, get a policy that gives full Accidental Damage cover, not just specific perils. You want Replacement payment, not indemnity (current value) conditions.

Insurance -- while there are some universals throughout the USA. It's a state by state situation in the USA. Also .. As I said above. "Replacement" and "Full" .. and many other words we think protect us .... don't.

Someone in a early post said they had "unlimited" coverage .. maybe in Canada. It's not happening in the USA. You have to have the limits correct. My code upgrades alone approached 100k on my current nightmare project.

 

[aafadca]

I finally went with Erie. I had them some years ago and was pretty happy with them. One thing I like is if you're "insured to value" they will pay full replacement regardless of the of actual "replacement value". I think some companies will pay a percentage over replacement value. After I added my vehicles the premium came down to about 170.00 less than Liberty Mutual was trying to increase to! I've only been with Liberty Mutual a year and hated to leave them but such a big jump is crazy.

 

[Jack_Toepfer]

I just spoke with Liberty Mutual re: my garage addition. Roughly $70k into the addition and $30k in tools and furnishings later and they would only add $26k in coverage to the policy because of the square footage of the garage, and because the 18x32 space above it isn’t finished yet. Total covered is just about $300k(with house), and I believe that means $30k to cover the contents of the garage(s) - is that correct? I have separate replacement value on the contents of the rest of the house, I think.

I think that broker advice is great, and I need to shop around. GEICO had the best package deal and everyone else was taking me over the coals for my Hellcat...

 

[JamesW84]

Another tip: policies for detached strictures are greatly underestimating replacement costs. For example, SF had calculated that replacing a 950sf garage in a rural area was 20k. You would be lucky to get a slab poured for that price.

Off topic, but if you're paying $20/sq ft for a slab in North Dakota, I think I'd look at relocating. Slab on grade only with minimal dirt work, no rebar 4" thick should be more like $4000-5000.

I don't like the idea of insurance either except for catastrophic incidents. My health insurance is that way, also. I have relatively good insurance at work, and we have a plan that is only like $3 a week, but my deductible is $3000 for me (single). I pay 100% up to $3000, then I'm covered 100%.

I raised my homeowners deductible to $1500 ($2500 wasn't much cheaper) for the same reason. Not that $1500 is really high, but it helps with the premium. The thing is, most Americans don't have $500 in savings, much less more, for the deductible.

 

[Fatboy148]

Another tip: policies for detached strictures are greatly underestimating replacement costs. For example, SF had calculated that replacing a 950sf garage in a rural area was 20k. You would be lucky to get a slab poured for that price.

Not to pile on this post but with a fire, the slab should be no reason to pour new as it should be pretty much unscathed other than some cleaning.

 

[ddawg16]

Related but slightly off topic....

What were the walls made of?

My garage? garage behind me could burn to the ground and mine would be fine. There is something to be said for stucco walls.

Inside? All 5/8" type X drywall. The fire would have to go for a long time before it would effect the structure.

Hence, built right, you can reduce the chances of fire.

 

[Fatboy148]

Total covered is just about $300k(with house), and I believe that means $30k to cover the contents of the garage(s) - is that correct? I have separate replacement value on the contents of the rest of the house, I think.

Not sure about your policy but the contents coverage of my outbuildings is the same as the contents inside the house for which I have replacement coverage to 80% of the policy limit.

Your case may be 10% for the coverage of a detached structure itself, that is what I have along with an additional rider to put the building coverage to where I think it should be for the cost of rebuilding. Each detached structure is considered a separate outbuilding UNLESS they have a event that encompasses more than one of them at one time like a tornado or conflagration.

The moral of the story is to know what your policy covers and what it means before you have to file a claim.

 

[ard]

I just spoke with Liberty Mutual re: my garage addition. Roughly $70k into the addition and $30k in tools and furnishings later and they would only add $26k in coverage to the policy because of the square footage of the garage, and because the 18x32 space above it isn’t finished yet. ..

Wow. That is some **** insurance company.

Ive never had a problem buying the coverage I want. Twice they had to send a body out to inspect/verify.

Any chance the person didnt fully understand this would result in you leaving?

 

[Pluribus]

Since I have far more shop square footage than home square footage, I recently upped the "outbuilding" coverage to somewhere around 75% of the house, the maximum offered.

I'm not brave enough to go uninsured, but something I think a lot of people don't understand about insurance is that they make money by paying out LESS in claims than they take in through premiums. They have actuaries who understand the odds and make sure that they're in their favor. Couple that with some of the weasel-y exceptions they write into policies and the arbitrary denial of valid claims, and it's no wonder insurance companies are very profitable! Odds are that we (as a whole) will pay more in premiums than we'll receive in claims. Math...

 

[Jack_Toepfer]

Not sure about your policy but the contents coverage of my outbuildings is the same as the contents inside the house for which I have replacement coverage to 80% of the policy limit.

Your case may be 10% for the coverage of a detached structure itself, that is what I have along with an additional rider to put the building coverage to where I think it should be for the cost of rebuilding. Each detached structure is considered a separate outbuilding UNLESS they have a event that encompasses more than one of them at one time like a tornado or conflagration.

The moral of the story is to know what your policy covers and what it means before you have to file a claim.

Mine is attached. Basically a 2 story addition, 1st floor is all garage, 2nd floor is unfinished garage attic.

Wow. That is some **** insurance company.

Ive never had a problem buying the coverage I want. Twice they had to send a body out to inspect/verify.

Any chance the person didnt fully understand this would result in you leaving?

I don't believe she fully understood, but I also don't believe Liberty Mutual has a good policy for my situation. I'll look into it again.

 

[finn]

Since I have far more shop square footage than home square footage, I recently upped the "outbuilding" coverage to somewhere around 75% of the house, the maximum offered.

I'm not brave enough to go uninsured, but something I think a lot of people don't understand about insurance is that they make money by paying out LESS in claims than they take in through premiums. They have actuaries who understand the odds and make sure that they're in their favor. Couple that with some of the weasel-y exceptions they write into policies and the arbitrary denial of valid claims, and it's no wonder insurance companies are very profitable! Odds are that we (as a whole) will pay more in premiums than we'll receive in claims. Math...

How would an insurance company, or any company for that matter, stay in business if they continually paid out more than they take in?

They are in business to make a profit. That’s what capitalism is all about, isn’t it?

 

[tfinniii]

Friend lost tools in shop fire, insurance agent said he never heard of lifetime replacement of tools (snap-on,etc.).

 

[Pluribus]

How would an insurance company, or any company for that matter, stay in business if they continually paid out more than they take in?

They are in business to make a profit. That’s what capitalism is all about, isn’t it?

My reference is for those who over-generalize and imply that it's stupid to not be insured.

Edit:
While capitalism is a great system, why is a reference to economic ideology necessary in a conversation about peoples' odds of coming out ahead in premiums paid vs. benefits received? Politics and religion also weren't part of the point, but do those need to be addressed too?