Insurance Surprise

[Modern Garage]

please elaborate

The owner acting as GC would be in a position to claim a building that just burned down or blew away was built and finished to a higher standard than it actually was or to create documents claiming that it was built to code when it was actually a house of cards. Obviously not your case because you intend to occupy the building, but they don't know who's a competent DIY and who's a scammer.

 

[andyvh1959]

Making a profit is essential for a company to sustain. But my viewpoint is slanted towards companies that actually make products versus those that are largely "service" providers. When I see reports of service companies like insurance providers making 20% and higher profit margins, I do get an attitude about them. Like everytime I drive past Acuity Insurance and one of their building touts their "Technology Center", I feel like, "Really? Technology?" Guess I really am getting to be an old man with attitudes.

I recently retired from a very large international company that specializes in all aspects of motion control, everything from trucking, shipping, aerospace, biomechanics. Nearly all the products are high tech, requiring many materials, many suppliers, machining, handling, etc. That means the profit margins are tighter because of the costs to produce from raw materials to final product. For similar companies like Bosch, Danfoss, Eaton to make a 10% annual net profit is phenominal, and those are substantial, long term successful, sustainable companies.

 

[andyvh1959]

Just got a form from State Farm (my inusrance provider for over 40 years) to review any updates on my home policy. The form included details on any updates or major changes, like in my case a major/total kitchen remodel and building my detached 24x28 shop. Up until four years ago my home policy averaged right around $700, past year was around $800. Just paid the bill today, $1286, that's 60% increase. Now, I have full rebuild at market cost, all the liability coverage, etc, etc. But still. Guess we're all paying for the homes devasted in fires and floods, and covering the rising home values as well. My home value has gone up considerably since buying it in Sept 2002.

 

[SouthernIllinois]

I am in Central / Southern Illinois, on 15 acres out in the country, well outside and city or village jurisdiction.

I couldn't get a permit or inspection even if I wanted one.

I built a 68X36 pole barn with finished interior.

The electric company had to come kill the pole while we tied the meter in - no permit, not inspection, nothing. Power company employees killed the pole and tied into the new meter and then sat in their truck and ate breakfast burritos and drank coffee while we tied the building to the meter. After we were done, they turned the power on and left.

Have had State Farm for 35+ years.

Called my agent, told him what I wanted it insured for and a week or so later, I got a bill.

 

[CV428]

I told my State Farm agent that I was putting in an out-building, and that we finished an in-ground pool installation. We agreed on a value, he put it on a line item in my home owner's policy, done deal. Easy peazy. My annual premium went up about $100 total.

Had it been Allstate, they would have tripled my premium, lost my policy, recreated my policy 5 times under different name combinations to generate bonuses for themselves, lost the policy again, smudged signatures, and continued to bill me for a year after I cancelled every policy. [if you can't tell, screw Allstate... I was with them for ~14 years and they hurt us quite bad financially...]

 

[4x4Pete]

I foolishly believed that insurance was a pool fund. You pay in and you're covered if something goes wrong. As long as the pool is larger than the claims (plus profits) everything works well. This is definitely not the case. Insurance companies do not pay out any of the premiums they receive. The premiums pay for executive bonuses, employees, lawyers and investigators to find out who is going to pay for the damages. The decision is made and then they sue and bill whomever they find responsible. When they win the ensuing lawsuits, the at fault parties pay for the damages and everybody's premiums go up. If they lose the lawsuit, everybody's premiums go up. When a major disaster occurs they don't pay out as there is nobody to sue really, and the government has to step in to help people.