Home Owners Insurance Evaluation..

[Warstud]

Was wondering if someone could evaluate my insurance. Here's a statement from my current Insurance (Grange) that has pretty much doubled in 3 years. The first statement is from 2013 and the second is from 2008 and the third is a quote from AAA 2014.

Statement from Grange Insurance 11/16/13
Part I Limits of Liability
A - Dwelling $209,700
B - Additional Structures $20,970
C - Personal Property $146,790
D - Loss of use loss deductible $500
Part II
E - Bodily Injury and Property Damage Liability $500,000 Each Occurrence
F - Medical Payments to Others $5,000 Each Person 25,000 eack accident.
Total Premium $1221.00

Statement from Grange Insurance 11/17/08
Part I Limits of Liability
A - Dwelling $173,900
B - Additional Structures $17,390
C - Personal Property $121,730
D - Loss of use loss deductible $500
Part II
E - Bodily Injury and Property Damage Liability $500,000 Each Occurrence
F - Medical Payments to Others $5,000 Each Person 25,000 eack accident.
Total Premium $682.00


New price quote from AAA
Part I Deductible: 1000 ALL PERILS
Part I Limits of Liability
A - Dwelling $194,000
B - Additional Structures $19,400
C - Personal Property $97,000
D - Additional Expenses $38,800

Part II
E - Bodily Injury and Property Damage Liability $100,000 Each Occurrence
F - Medical Payments to Others $1,000 Each Person
Forms and Endorsements made part of this policy
PREMIUM
H-3 Homeowners Insurance Policy - Dwelling Form $453.00
Total Premium $453.00

 

[Sierra048]

Looks like AAA coverage limits are less. That being said, given the huge price difference, you could increase your coverages with AAA and still come out way ahead. I have good rates for home and auto through a retiree plan from my employer but I shop those rates every year because even my good rates are starting to creep up and other companies are becoming more competitive.

 

[SatinSilver]

The new quote looks good. Grange had a high value on personal property. The $450 is reasonable and what I'd expectate to pay. I'd leave Granger asap. You will get a pro-rated refund on the premium. Consumer Reports has a ranking of the top insurance companies so I'd check that out as well.

 

[newtoncd8]

To compare apples-to-apples, what happens if you raise the Grange deductible from $500 -> $1000?

Regardless, even though the AAA isn't covering as much, assuming you don't have any claims, it looks like it is time to switch.

 

[Warstud]

Well here's the deal...when I inquired about a refinance i was told the house was worth $68,000- $62,000. So should the Dwelling be insured for $209,700. Also...Additional Structures is $20,970 and I've got an old shed with a lawnmower in it. How do they come up with these figures.

 

[SatinSilver]

Usually what it's worth or the cost to re-build it. They probably started with the value and kept updating it automatically by 4% or so. When RE in MI has been very flat. So probably put the value at around $100k max. How many square feet is it or what are similiar homes to yours going for? Maybe talk to some agents.

When someone buys a home the insured amount is usually the purchase price. Then some of the riders are added.

 

[Rand]

I just shopped mine around
they can vary widely.

travellers was 200$ more than state farm.

but my house was rehabbed with new wiring, pipes, hvac etc
so I get a decent discount for that.

 

[The Critic]

Cost to rebuild and market value are two entirely different things.

Does either policy include Ordinance and Law Coverage? Ordinance can be a significant expense due to the required code updates in the event of a loss.

Also, check to see what additional coverages are on the AAA policy. Many policies will set separate limits for certain items, especially Jewelry. From the start, the AAA policy has significantly lower GL, med-pay and contents coverage. I would not feel comfortable with the GL limits that the AAA policy is offering.

I bet that the AAA policy will be quite close to the Granger policy once you do an apples-to-apples comparison.

 

[HTSS_TR]

Originally Posted By: Warstud
Well here's the deal...when I inquired about a refinance i was told the house was worth $68,000- $62,000. So should the Dwelling be insured for $209,700. Also...Additional Structures is $20,970 and I've got an old shed with a lawnmower in it. How do they come up with these figures.

The insured amount is the cost of rebuilding plus appliances, floor cover, window cover ...

 

[Cutehumor]

I am in the same boat as the OP. My home owner insurance has doubled in four years. No claims either. There have been a lot of natural disasters in the country so the ins companies have to raise homeowner rates across the board.

hurricane sandy tornadoes blah blah. I have met life. I will cross shop too.

 

[EA82]

Yep same here, the problem here in florida is not many ins co's to choose from, I shopped for a couple of quotes and haven't heard back from them. Our current quoted premium is triple the OP's and triple what it was three years ago, just outrageous.