OT Homeowners Insurance

Steve@Advance · Mar 12, 2015

If anyone has been following, you'll know I just moved my 88 year old mom in with us, she's no longer able to live alone, and voluntarily gave up driving.

I recently got the renewal notice for her homeowners insurance. Last year the cost was $1995. This time it went up exactly $1000, to $2995!!!

I gave the agent a call, not a real friendly call, BTW. Turns out the reason for the 33% increase, since the auto coverage was dropped, she lost the "Multi-Policy" discount.

"So, the multi-policy discount is worth 33%?" I asked...
She never would answer my question, just told me that was the way it is. Corporate sets the price, nothing she could do.

"Can I put the car back on?"
(All that was on it was minimum liability)

"No, not if she can't drive."
I explained she can drive, still has a license, has had no tickets or accidents, the car would not even be driven, just sit in the garage.

"No."

OK, were done here. Bye

Well, she called back that evening, said I could put the car back on, that would save about $500.

I guess that's what I'll do unless I find a better deal.

Just wanted to put this out there, anyone in the same situation, be careful before canceling the unused car insurance!

D beatty · Mar 12, 2015

I think if I was you I would be shopping around for a differant insurance company to go with and tell them goodbye.

Randy Shoe · Mar 13, 2015

No doubt I would be doing business with another insurance company, for sure with a different agent. Sounds as if she's not telling the whole truth. I would be shopping.

37chief · Mar 13, 2015

I would start shopping around. The insurance agent we had for our property said we had to put all the equipment behind a fence. We found another company. Equipment still sits out. I have State farm now. Stan

ss55 · Mar 13, 2015

Besides shopping around, also check with you own insurance company if they will write a policy for either your mother or for you. Consider transferring one of your vehicles to another company if needed.

After you find your best deal, call your mother's insurance company back and ask if they can beat it. Talk to one of the upper people in the agency. Sometimes they will.

I don't know, but some insurance companies could be leery of writing policies on unoccupied houses in certain areas.

CenTex Farmall · Mar 13, 2015

Home insurance, car insurance, health insurance, crop insurance, life insurance etc, etc.

We're all taking a bath on this insurance racket. I guess we're insurance poor.

RLH22 · Mar 13, 2015

mom went to nursing home insurance co found out and jacked rate because house was unoccupied

Dick2 · Mar 13, 2015

We use an independent insurance agency. They shop around and advise us which company has the best coverage for the lowest rates. They seem to have a lot of clout with the companies and beat back some of the ridiculous rate increases that the company tries to tack onto the existing coverage.

Rex Simpkins · Mar 13, 2015

Isn't it amazing that when you try and talk with them they act like they are doing you a favor by taking your money.

My father who was an attorney, always said if he had it to do over he would have been a insurance salesman---
Of course me the kid ask why???

He said where else in the world can you have a job taking peoples money for something then you are not responsible too them, when they have a problem the first words out of their mouth is " I can not help you with that let me give you a phone number to a adjuster"

Rex Simpkins · Mar 13, 2015

That should have read when "you" have a problem.

Sorry about that insurance company's "P" me off so bad I get ramped up and type faster than I think.

Which ain't too fast.

Pair-a-dice farm · Mar 13, 2015

Insurance is a racket. I shop around for other insurance every 3 or 4 years. My car insurance allows anyone to drive my vehicles but when my youngest son moved out my insurance went down even though he still drives my trucks.

MarkB_MI · Mar 13, 2015

It has been my experience that you should change carriers every few years. I'll bet you can get coverage for a third less than what you're paying.

Note that it will affect the premium if the residence is not owner-occupied. If her bills are going to your address, that may have tipped off her carrier that she had moved out.

JOCCO · Mar 13, 2015

Steve first "She never would answer my question, just told me that was the way it is. Corporate sets the price, nothing she could do" THOSE WORDS HAS COST MANY PEOPLE A DEAL WITH ME INCLUDING MY INSURANCE AGENT!!!!!!!!! We don't know your situation (value, location etc) but sounds like your getting the shaft to start with. Shop around look at farm companies. Sometimes you can separate auto and home and do better.

VADAVE · Mar 13, 2015

2000 or 3000 for homeowner's insurance seems excessive. If I remember right you have a farm. Your home should be covered under your farm policy. Your mom's should be covered under a rental policy. Such a policy will cover the building not the contents which are the responsibility of the renter.
AND with the agent being snotty you should be shopping.

WGM · Mar 13, 2015

An unoccupied home carries more risk.

jimg.allentown · Mar 13, 2015

An agent with an attitude like that would not be my agent for long. As others have said, shop around!
Taking the insurance off the car would definitely cost you the multi-policy discount, but 33%?? NOT! Somehow, I think that the agent lost some of her commission, and is making it up with the homeowner policy. In any case, that rate sounds high. My homeowner insurance only runs about $500 per year. And, I have been with the same company for over 30 years. My agency was sold out to another owner several years ago, and this owner has been annoyingly aggressive. I changed agencies 2 years ago, and still get calls from him. I mostly changed agencies because I moved out of his area. His aggressiveness sealed the deal. Still, there are agents out there that will be happy to get your business, and will be courteous to boot.

Mike M · Mar 13, 2015

Others have touched on this earlier. But If the house is unoccupied many people have not even been able to get it insured !

Donald Lehman · Mar 13, 2015

My experience over the years mirrors Mark-B. Insurance companies will give you a good deal to sign you up, but the premiums will creep up a little every year. Within a few years you can get cheaper rates by changing companies. Independent agents may or may not be diligent about finding you the best deal for your needs. Seems every time I find a good agent who is genuinely concerned about your needs, the agency is bought out and the agent is given the boot.

Ron-MO · Mar 13, 2015

I am getting ready to start shopping myself. Several years ago when I moved from a house in town to the country my rates were not too terrible, but after a couple fairly severe increases I started looking at my policy, and found I was paying for their "farm and ranch" coverage which was insuring for farm employees, and significant liability. I went to my agent at the time and asked to be put on a homeowner policy and I was not going to insure farm employees, etc....and I do not hire anyone, and rarely is anyone else even on my property, and the land is posted. She indicated she would not do that, and I bid her good day and that I would likely be cancelling my policy as soon as I find someone that would provide the coverage I need (I stress the term NEED). She then seemed surprised when I called her to cancel not only my "farm and ranch" policy, but every vehicle as well. Fast forward, my home owner policy has increased every year, and now higher than I was paying before I cancelled my other policy, so it is time to gather my documents and shop. I have been told it is true that insurance companies give better rates to new customers, but given my wife had a accident I was holding off until the accident was over 3 years old to help rates. I did find a way to save a few $$, in that some insurance companies try to toss medical coverage on the vehicle, and since I carry my own medical insurance, that was an expense I was likely never going to need, and liability coverage covers others if they are injured and your fault. I removed all medical coverage from my auto policies.

oldtanker · Mar 13, 2015

OK, I want to know what state. Something fishy here. I'm not addressing the homeowners part I'm questioning the car insurance part.

Most states allow someone who can't drive due to medical conditions or age to still register and own a vehicle so that they can have a vehicle equipped to assist them getting in and out. They of course are not supposed to drive it but other people can drive it for them. I'd check state law on someone owning and registering a vehicle who can't drive for those reasons.

Rick

Alan K · Mar 13, 2015

That is like a friend of mine said when he was trying to get a quote on some building work on the farm. He called them once for an estimate, to which they told him they will get him one and get back to him. He said "I shouldnt have to chase someone down to give them money". How true.

Texasmark1 · Mar 13, 2015

In TX. there is a state regulatory agency which dictates to the insurance companies. They set rates. Course you know as well as I that regulatory agencies are NEVER bothered with things like LOBBYISTS..................

Mark

MSD · Mar 13, 2015

Had aout the same deal happen when I dropped a vehicle from my insurance. All the other ones went up a total of more than what I was paying on this one. I took my pickup off my commercial policy that I was paying over $550 for and put it on with my personal ones with just liability for $160. Then my others dropped back to what I was paying before. Multi vehicle discounts!

Jo Bird · Mar 13, 2015

I see these instances as red lining, that is, the insurance company is looking for ways to dump people who are paying low premiums. Even better story here, we Had a , multi-discount policy for 25 +/- years.. Got a letter from our insurance company that they would not renew our house insurance. Called the agent and questioned the situation, answer, seems their is a rating system that covers insurance company risk related to distance of the NEAREST PAID FIRE COMPANY.. because we did not live in an area covered by a Paid Fire Dept. we were being dropped. Most areas such as ours have all Volunteer Fire Dept's and we live 6 miles between two of them. So I asked if they were dropping all the policy's in the county in which we live. ( Their isn't one paid dept. in the county.) Answer, Sir We cannot divulge that information!! To be completely honest with you, we had one claim 3 yr's prior to being dropped, natural causes if you will, no fire or anything we did to cause the loss of about $2,500 in our 25 yr history with the company. Long story short we are no longer in the hands of our previous ins. co. !!

redtom · Mar 13, 2015

I'm in Mich and my folks ins dropped them in Jan because neither have a license anymore. I transferred their two vehicles to me and insure them that way. As a side note my independent agent that's holds my homeowners is always waaay higher on car ins when I ask. I was alos warned by a former ins agent that parents homeowners ins will raise heck when/if they find out they're in asstd living.

NEBeef · Mar 13, 2015

As others have said, I'd be shopping for a new insurance agent.

If there's one thing I've learned over the years, and it seems to be getting worse nowadays, there is an apparently never-ending supply of people who haven't got a clue as to what they're doing. And they just make things up as they go, knowing that most people will believe what they say assuming they are some sort of "authority figure".

If it doesn't seem right, question it. If they won't make it right, move on...

jamesinok · Mar 13, 2015

Do not know what state you are in, But a homeowners that no longer has the named insured living at that address by Insurance Service Office rules is declared vacant. This could happen and frequently does in my agency because someone doesn't want to bother telling me that they are working out of state a few months, but change their mailing address with company. Guess what the company is going to put a vacancy clause on policy that will almost double the premium. Then when it doubles, I have to get affidavits from insured to prove to underwriter that they still live in the home. How much easier if they would have taken time to call. Also most homeowner forms will not cover for any kind of liability for farmland, whether you are farming it or not, and if you own it over 40 acres. Make sure what you are buying. If the policy does not say it is a covered item, the company will usually take the road that it is not covered. Also, because of my errors and omissions coverage, I also will not move a person that has any kind of farm exposure, land, creeks, ponds, rented to others, to a homeowners liability. Business is my lifeblood, but when I delete liability, the courts have said, I, not the landowner, should not have done this because I know the risks. A new agent will write you what you want. As JohnT says, consult a professional in your area and if someone tells you something is covered and can't show you in the policy where the policy states it is covered, you need to assume it is not covered. I know this is probably what you do not want to hear, but there is some of us try hard.

wisbaker · Mar 13, 2015

Insurance is a racket, don't get upset, ask questions and beat them at their own game. When I was a young man may moons ago I decided to purchase a '66 VW bus so I'd have a spare car in case my '73 VW bug had troubles. I dutifully added my bus to the car insurance, being a single young college student the $70 dollars or so it added to my car insurance was dear, but cheaper than running dad's farm pickup for a week. About a year or so later my financial situation improved and I choose to buy myself a new Renault Lecar (yes it was a lapse in judgement), I transferred the plates from the bus to the Lecrap. My insurance agent quoted me $800 for insurance on Lecrap, in the process of adding the new car he asked "which vehicle is this replacing" I informed him the bus tags were on the Lecrap. Imagine my surprise when I get my insurance bill and it's only for $500. Seems I got a multi car discount even on the collision. The agent informed my to never sell or dispose of the bug or change anything lest they figured out they'd screwed up. After driving the Lecrap for a few years I'd finished college and decided to upgrade my vehicle. I bought a new Ford Ranger 4x4 pick-up. When I did the insurance I figured they'd figure out my multi car discount was a fraud, they didn't. My run at this finally ended when I moved to Oklahoma and didn't take the bug (hey it hadn't run in three years).

Of course the new rate on me as a single young man in a 4 wheel drive truck was about $1,200/ year. I was incredulous, they're a bunch of idiots, I go from driving 22 miles to work, across Lansing Michigan 5-6 days a week to driving from the farm to town maybe twice a week and my insurance doubles? After asking some questions we changed some coverage and applied a Farm & Ranch discount and got it back to around $600.

Switched to USAA when I was inthe Air Force and have been with them for 30+ years. Yes they'r insurance companies they're still scumbags, just a little bit nicer scumbags.

CKain(MI) · Mar 13, 2015

I left a very popular insurance co.(initial FB), here in Michigan, late last summer. They forced me to replace a part of my house roof, even though it wasn't leaking. And I planned on doing that but at my schedule ! ! Anyway I took my vehicles and home coverage to another company and saved 50% of what I was paying.
Do not know if all states have insurance policies available, based on some employment at an education institution. OR belonging to a Credit Union, for those people.. email is open.

ss55 · Mar 13, 2015

Besides home insurance, other expenses like property taxes, utilities, lawn care, periodic cleaning and normal maintenance continue on an unoccupied house and can be significant.

Your long term plans for your mother's house could have big changes her insurance needs and her payments. Will the house be unoccupied in hope she can return soon, will it sit vacant for an undetermined number of years, will it be sold in the near future or will it be rented out?

If the house will be sold within six months, her home insurance might become a minor expense compared to realtors fees, preparing the house for sale and moving.

JML755 · Mar 13, 2015

(quoted from post at 05:00:59 03/13/15) We use an independent insurance agency. They shop around and advise us which company has the best coverage for the lowest rates. They seem to have a lot of clout with the companies and beat back some of the ridiculous rate increases that the company tries to tack onto the existing coverage.

Same here. Every year, they look to see where we get the best deal. Some years we stay the same, some years we change. They have interceded when we've had an issue with a claim and never back away from working on our behalf with a carrier or adjuster. Just like your situation, they've let us know of an impending increase and then got the rate raise eliminated or reduced.

Jahaze · Mar 13, 2015

I own an unoccupied house down the street. The insurance company covers it as a vacation/seasonal home. Much better rates than an "unoccupied" home, might be something to check into. I now call it my hunting camp.

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