So the Allstate policy is up for renewal. X amount of coverage, plus a rider, for $2200
I guess it’s public record, as we get a bid from the local Traveller’s broker and its…
$577.
Granted, it includes some discounts for auto insurance, and no claims, and whatever.
Allstate can get their coverage down (using some handwaving) to $2000, which still leaves $1400 between them.
My BS meter thinks Travellers is sending me a ringer to give 'em a call, but even if it’s DOUBLE, there’s still quite a spread. Unfortunately, you really only find out how good a policy is when you need it most.
If you’re comparing apples to apples with identical coverage then there’s obviously an issue. Without knowing the amounts of coverage or types of homeowner’s policies being considered, it’s impossible to say which quote is accurate because premiums are mainly tied to these amounts. Why not contact Travelers to make sure they are offering the exact coverage you seek?
At first glance, $2200 seems high unless the amount of insurance on the dwelling is in the $1 mil range or there are some other unusual aspects to your situation.
You may want to obtain at least two more quotes while making certain each company is offering identical coverage. Reputable insurance companies do not routinely low ball bids. If they do and wish to raise them later, they may encounter a problem with State Corporation Commissions/Insurance Commissioner as most states exercise some control over premiums.
I ran everything through USAA last night and they came out at $1600…There’s a lot of miscellaneous discounts and there IS a $120/yr additional line item for jewelry on the Allstate quote (meaning like for like, it’d be about $1900 vs. USAA’s $1600) a $300 difference seems less fishy.
I did come across the following statement online and it seems intriguing:
That’s an interesting comment and most of it is probably accurate. The part I disagree with involves the insurance company considering anything that generates a claim as the fault of the owner because it’s more of the claim beginning a scorecard for the property. It’s been my experience that they consider both the type of claim and the cause. As an example, if there are claims involving careless smoking or a neglected pan of grease on the stove that ignites, this type of claim carries more weight against renewing a policy but increasing the premium because it more easily involves fault or lifestyle that may create losses. On the other hand, a house by the ocean receiving seasonal damage from high wind is no fault of the insured but certainly a factor in classifying how good or bad that property may be from an insurance viewpoint. All insurance companies classify homes they insure as “risks” and the actuaries predict the number of claims that that these risks should create over a given period of time.
If an insured submits multiple claims exceeding these actuarial predictions, they may be classified as a bad risk and premiums could rise or the policy may be non-renewed so a higher deductible, in my opinion, is a wise choice and I have a $4,000 deductible.
Homeowner’s policies as well as the mindset of insurers and insureds have evolved over the years. There was a period when insureds treated their policy much like a maintenance policy and submitted claims as often as possible for relatively minor losses. To counter this, deductibles began rising along with premiums until finally the underwriting folks were tasked with keeping a closer eye on multiple claim risks in order to cull them from their books. In that regard, I agree that it is foolish to keep a low deductible and submit a claim on any loss exceeding that amount.
Most of us do not live in no-fault states which, according to Wiki, are: Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah.
I get those from time to time. One time I brought it into my insurance agent with a ‘What the hell!?’ attitude. They broke down the quote and showed me that the deductibles were higher then what I was paying for and the coverage was lower. Some of the numbers were lower then what was actually allowed in my state.