Home owners insurance

NotaSuv

Your experiences good,bad and ugly...coverage amounts..monthly/yearly costs...we are finally putting down roots and can use any advice possible........thanks

mhardy6647

consider an umbrella policy.

dromunds

Don't just consider an umbrella policy, get one - they are a very good value. I just increased my deducible because I am not going to make smaller claims, that's what get you dropped and affects your rates in any event.

Emlyn

I agree on the don't make smaller claims thing regardless of insurance company. Insurance adjusters will pay out say $2K to $3K for something that's considered relatively minor like damage to siding or water damage to drywall but then the insurance company will jack up the premiums they charge to get their money back and that upcharge would carry over to all other insurers too to prevent cross shopping for better rates after a claim. Insurance companies don't like seeing claims and they don't like what they see as risks.

House insurance is really for major damages so the deductible can be set higher than it is for car insurance. It's much easier to finance home repairs and pay the low interest rates on them than it is for a car. And, plan on setting aside funds to pay out of pocket for some home repairs rather than going to insurance.

mhardy6647

Realistically high deductibles (as both posts above mention -- or at least imply) are also well worthy of careful consideration.
I deliberately say "realistically" because what's reasonably affordable, even when risk-adjusted, can be very different for one person relative to another! We have fairly high deductibles (maybe even very high by some folks' standards) and I believe it saves us lots of money, net, in the long run.

Joey_V

I would just pay attention to the deductible. Maybe make sure the deductible is low the first few years while you are putting roots then later increase it as you need the money less. Go with a good company rather than saving every penny.

Kex

Is there any such thing as a good company? There are dozens of stories of people insured with the same company for twenty years, and after the first claim, they get dumped.

Maybe a good local agent, but is that even a thing nowadays? 🤔

Kex

dromunds wrote: »

Don't just consider an umbrella policy, get one - they are a very good value.

Don't umbrella policies always work as secondary insurance? Can you explain why it might be better value?

Joey_V

Umbrella is for liability

It does not cover deductible for home damage

For example, someone trips and falls delivering your packages or a housekeeper or handyman falls and breaks a leg in your house.

It can extend to cover liability with auto accidents as well.

I don’t believe umbrella will bail you out in a hailstorm for example.

Kex

Right, I get that part of it.

However, it would seem that umbrella insurance is not something that is likely to be used often, if it is only secondary to the primary insurer, either auto or homeowners. In that regard, it is not that "cheap".

For example, my umbrella policy is for $5 million. The annual premium is $1,800.

So yes, it's good value compared to the amount of liability it insures against, but most people would likely not use it as frequently as their auto or homeowner's insurance. This is especially true since the umbrella policy underwriter insists on much higher liability limits for auto insurance than the state required minimum, thus reducing the chance that they would ever have to pay 1¢ themselves.

dromunds

If you are at fault and the damages exceed your underlying coverage and you don’t have an umbrella they could go after your assets. It doesn’t take much to get to several million verdict if you injure somebody these days, considering past and future pain and suffering, loss of income, etc., and some doctors are quick to conclude an injury is permanent. If you have an umbrella also more likely a personal injury lawyer will settle under or at the policy limits. Just an example. Also, if you have an umbrella I believe the insurance company can reduce the limits of your underlying coverage which may save considerable premiums which can be put towards the umbrella premiums but I’d check with an agent about that.

NotaSuv

Thanks great info to someone who has always rented........