homeowner's insurance doubled

[The_Jeff]

eek, I just got a letter from my homeowner's insurance co.

They about doubled the rebuilding cost of my house. I know this is a crock, as my father-in-law is a contractor. I know wood is more expensive, etc., but he sees houses being built better than mine every day for about half of what my insurance wants me to carry.

I don't mind annual inflation adjustments but this is absurd. I bought the place 4 years ago for ~1/3 its "current value".

I don't mind carrying a deductible. I only have my first mortgage and even have a decent amt of equity in the property.

Things not in my favor are the house was built in 1915, has a couple of woodstoves, and we keep a rottweiler mix dog who's a wicked sweetie-pie.

Our metal roof counts as "other" in online questionaires and covers half the house; asphalt shingles cover the other half. So quotes get complicated and people guess high.

So is there a way one can get "declared value" insurance or something? I know it's not playing their cozy little game, but I'm not going to pay to insure the mansion I don't own either because they surely won't pay out the maximum value.

I know this hurricane aftermath is ruining insurance companies but I figure in inland Maine I'm far away from that fracas.

 

[GROUCHO MARX]

Everybody pays, insurance companies can't lose.

 

[NJC]

Even in Canada we're paying for Katrina.

My insurance went up ~40% for 2005-2006.

 

[Pablo]

I say shop. Let them know you are shopping. Bundle it with your auto insurance for further savings.

 

[Texas Aggie]

Try Pablo's advice, my homeowners insurance actually went DOWN this year.

 

[JAYCEE]

Texas insurance has been hyper-inflated over the past few years because of mold. They no longer cover mold damage, but the rates will never be back to pre-mold levels.

 

[Islandvic]

eljefino, why renew with your company if they are increasing your rates?

Just shop around on the internet.

 

[cousincletus]

Have seen my rates go up a lot too here in central VA. We got hit by hurricane Isabel in 2003 but didn't do any damage here (glad I cut all the trees down near the house). The ins. companies around here are running ads suggesting some people are claiming more than what their damaged property is worth. But it's ok for them to take your money and value your house and personal property at more than it's worth.

 

[Jimbo]

If you have the typical "Deluxe Homeowners" policy, you may want to revisit that. Coverage for contents is typically two-thirds of the structure value, and all charged at the same rate. Our furniture, clothes, appliances, etc are not worth nearly that much. I saved about 40 percent by assuming that risk myself. We still have replacement cost on the structure, along with liability, workmens comp and loss of use.

 

[Slick17601]

Find an insurer without exposure in hurricane areas like Erie Insurance.

 

[Master ACiD]

i did away with homeowners insurance. after i figured in the deductable, premium, hassle etc, it was not worth it to me.

 

[The_Jeff]

Slick, I like the way you think.

 

[Slick17601]

Erie is hard to beat for both service and price. The problem is their geographic coverage is not great.

 

[JHZR2]

I just learned that having knob and tube wiring in your home can cause you to have significantly increased premiums, or forced replacement, else they wont write your premium at all...

Amazing how it is all of a sudden so much more unsafe than it was 10 years ago.

I had read once that since they used heavier gauge wire, that it was actually better wiring, than the normal romex or equivalent... of course if its rat chewed or whatnot, who knows...

All the same, just another instance of the insurance companies actually being out to get the small time people.

JMH

 

[The_Jeff]

I have some old knobs (no wire attached) that I'll be removing.

Wouldn't want someone to find one of those insulators in the ashes...

The thing with knob and tube, is when romex goes in, many people cheat when the wiring disappears somewhere inaccessible, so they splice into the old stuff.

 

[slugsgomoo]

except for the fact that the insulation is 70 years old, and falling off.

Knob and tube is incredibly dangerous, and the number of fires are a really big reason that insurance basically won't cover it.

It sucks, but I've helped my dad, and some friends rip that garbage out and replace it. It's definitely *not* better than romex, though, as with anything, I'd go a step or two better than what code requires when you replace it.

Anyhow, they won't cover your knob and tube, because when the wiring catches fire, everyones bottom line is affected. It's a cost savings for everyone in the long run for them to not cover it, or to force you to replace it.