Explain this to me, please.
I live in an older home, which was built around 25 years ago, and I bought it for $50,000. It’s now worth $60,000, what with property values going up. I’ve had it insured for $50,000 ever since I moved into it 5 years ago.
Well, my home owners insurance just about doubled this month and after bouncing off of the ceiling over this, I contacted the insurance company to inquire about their error and was told that there was no error. In order for my $60,000 home to be covered for $60,000, I needed to have
$100,000 worth of insurance.
Well, I don’t want $100,000 worth of insurance (alimony, child support, splitting medical bills on the kids, along with the usual (and no complaints there) expenses when I have my two darlings over for visitation, takes a bite out of my pay. Besides, I insured the house for $50,000 when I got it and paid for $50,000 for these 5 years and would understand a slight increase now that it is worth $60,000 but not an increase of almost double for $100,000.
The insurance company refused to lower my payment and refused to cover me for $50,000, which, they said, would only give me around $30,000 worth of coverage.
I’m really confused now.
When did this stuff start?
It used to be that you went down to an insurance company, about whatever amount of insurance you desired based on the value of the home and contents and paid for that amount. If tragedy happened, the insurance company paid off on the amount you insured for, after the usual arguments.
They frowned on insuring a $50,000 house for $80,000 and if you persisted, they would slap on various conditions or simply refuse.
So, when did insurance companies start deciding that if you pay for $50,000 of insurance, you need to buy $80,000 worth in order to get $50,000 if something happened?
I watch the Antiques Roadshow and they suggest one buys insurance to cover whatever collectibles you have up to the value of said collectibles, not twice the amount.
Besides, if you don’t want that much insurance on your house, since when do insurance companies start refusing you service? Mine gave me an option; get $100,000 worth of insurance to cover my $60,000 house, which is insured for $50,000 or go somewhere else.
It seems to me that the insurance companies are getting greedy, again.
I’m getting a bit tired of this.
My medical insurance used to pay 80% of any prescription costs, but over the last 4 years, it dropped to only 50% on most, though my premiums have gone up 10%. They offer no options. Accept the changes or go elsewhere.
Each year my car insurance goes up even though I’ve not had any tickets or accidents in 10 years.
I figure we’re being screwed by insurance companies. Most insurance companies have investments all over the place and actually are among the richest businesses in the nation, even though they like to claim they aren’t. Blue Cross and Blue Shield has been screwing people for over 40 years and is still in business and still screwing people over. Look at State Farm and all of the trouble they got into, but they are still doing business.
The only insurance companies that I ever hear of going belly up are these little off the wall ones who provide PIP car insurance coverage for people who cannot afford regular coverage, but the setup company always shifts the people over to another insurer with little if any fuss.
I’d say I’m paying for all those morons who bought those cheaply built homes that the hurricanes blew down a few years ago and for all of those wiped out homes where people insist in living in flood zones (not real bright), but my carrier is local, having been in business since as far back as I can recall.
When I called around for insurance estimates, I got the same song and dance though. The house has to be insured for nearly double in order to get around half if something happens.
Anyone understand this madness?