UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: madbrain Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 17931  
Subject: Re: home replacement cost too high Date: 7/19/2011 8:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I still haven't found less expensive insurance. The Safeco premium on my home has gone up from 1430 last year to 3062 as of this friday. It was already paid from escrow.

Now, the only good news. I had a condo policy with Mercury which was about $500 for my old townhome. The property is now being rented. Mercury doesn't want to insure rentals and sent me a cancellation. My new policy is with Safeco and dropped to $225. Unfortunately, Safeco does not offer discounts for having multiple home policies.

Bad news : our auto policy is going up quite a bit. Firstable, in February we bought a new car, 2011 Prius, to replace a 2001 Prius. And the auto policy was with Mercury. We also had a multi-policy discount, due to having a home policy on the townhome. This discount will be going away. When we added the new car, the premium went up from about $800 every 6 months to $1045 every 6 months . I have not yet been notified by the insurer, but I expect it will go to about $1200 every 6 months once the discount goes away. This is for two cars - a 2007 Prius being driven 10000 miles a year, and a 2011 Prius 15000 miles. Both good drivers. Full coverage.

This is a total of $5368 a year for two cars and two homes - but actually one of the homes costs only $215/year, so it barely makes a dent. I project the total will go up to about $5700 a year once the Mercury multi-policy discount goes away.

I have been shopping for new insurance, but not been having much luck.
One company gave me a quote that would be about $4500 a year with a single insurer and $2.6 million of coverage on the home, but it requires me to install an alarm at our new residence. Alarms tend to cost around $30/month, plus installation cost. This would negate a good chunk of the insurance savings, at least in the first year. Also, I hate alarms, and I am not keen on signing any kind of long term alarm contract. I think it is totally useless on a place with 11 outside doors, 29 windows, and 3 skylights, which is just at the outer edge of wireless phone carriers. If somebody wants to get in, they can just cut the outside cable, which is how we get telephone service, and comes right at the front door, and then break in. We have no POTS phone line but if we did, it would probably be easy to cut as well. An alarm is a complete waste of money as far as I am concerned, but a big inconvenience for the occupants.

I'm thinking of putting a token alarm system just to satisfy the insurer. With one sensor, on one of the doors we never use. But even that seems very unsatisfying. Does anyone know what the cheapest alarm service is that does not require a long term contract ?

Also, if anyone knows of an insurer that will not insist on an alarm system, but does not have insanely high rates, I would be very grateful.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Berkshire Hathaway

Burger King's Play Not For Taxes?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement