Ask Experts Questions for FREE Help !
Ask
    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
    Ultra Member
     
    #1

    Sep 20, 2015, 11:11 AM
    Property Insurance
    New company has a better offer. The present company premium is due in November.
    Should you pay the new company premium now(Good Price) or wait till the old company premium expires??
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert
     
    #2

    Sep 20, 2015, 11:29 AM
    I'd wait. You may not get a refund on the remaining time on the present policy.

    Also, I have twice had a good cheap first year and they practically doubled it the second year, for no reason other than they wanted to get me to sign on.
    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
    Ultra Member
     
    #3

    Sep 20, 2015, 11:42 AM
    Makes you think and wonder.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,277, Reputation: 7690
    Expert
     
    #4

    Sep 20, 2015, 08:18 PM
    Also, if the "cheap" price binding, or can it change after the home inspection.

    I know when I got a new company, they had to have someone come and look and take photos of the house, confirm the fire district, measure the distance from the fire station and so on.

    Also, how is the new company claims record. When I lost my roof and part of my attach garage in a bad storm a few years ago, I had an agent at my house in a week, and a check or authorization for work in two. Some of my neighbors were still waiting for money 2 months later.
    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
    Ultra Member
     
    #5

    Sep 21, 2015, 03:48 AM
    Got tired of paying 3,200 annual, never filed a claim, yet they raise the insurance every year. New company which my neighbor has too, is a thousand dollar cheaper for the same coverage.Been with the old company for 10 years.

    Got tired of paying 3,200 annual, never filed a claim, yet they raise the insurance every year. New company which my neighbor has too, is a thousand dollar cheaper for the same coverage.Been with the old company for 10 years.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
    current pert
     
    #6

    Sep 21, 2015, 05:12 AM
    Many call me foolish, but I no longer have any insurance.
    But I own my house outright so am not required to any more.
    A drawback to that is that there is now a database accessible to all insurers of all other insurers. I would be denied because I went so many years without insurance, and it would be assumed that I'm about to file a claim.

    I would get online to research complaints about any company. My theory with car insurance (and HO too) is to either pay the absolute cheapest minimum and not count on good response to a claim, or pay top dollar for the best. I go for the cheapest.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
    Expert
     
    #7

    Sep 21, 2015, 06:41 AM
    Check your existing policy for what happens if you cancel your policy early. I had an issue in changing insurance carriers a few years back where my old company charged 10% of the annual premium if you canceled early, and if that's the case you should definitely wait till the policy renews. Also give your existing carrier a call and let them know you're thinking of switching - they may offer a discount to keep your business. You should also look at your auto insurance, and umbrella liability policy if you have one, to see if you can get a discount by using the same carrier for all three.

    As to joypulv's suggestion about being self-insured - it's certainly true that on average people pay more in premiums to the insurance companies than payments they receive from the companies, so if you can afford to take the financial risk it makes economic sense to self-insure. If you're not willing to go quite that far (and I'm not!) then the alternative is to set your deductible as high as possible.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,277, Reputation: 7690
    Expert
     
    #8

    Sep 21, 2015, 07:32 AM
    Can you not just sign up for the new insurance, to start on the last day of the current policy?

    I will note in a follow-up on the car insurance, it is the level of coverage also, not just the price. 50,000 in liability (a min for many states) is never enough, if you hit a high priced car or if there are serious injury bills can go up to 200,000 fast.
    My last car wreck, I think the law suit (against me) was for about 500,000.
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
    Expert
     
    #9

    Sep 21, 2015, 09:16 AM
    Quote Originally Posted by Fr_Chuck View Post
    Can you not just sign up for the new insurance, to start on the last day of the current policy?
    That's how I interpret the OPs question - should he do as you suggest (wait till November), or cancel now?

    Quote Originally Posted by Fr_Chuck View Post
    50,000 in liability (a min for many states) is never enough, if you hit a high priced car or if there are serious injury bills can go up to 200,000 fast.
    Absolutely correct! And it reminds me that part of the reason for homeowner's insurance is the liability protection it provides. If someone trips and falls on your front walk, or a child is injured while playing with your child, or a handy-man you hire doesn't have workmen's comp insurance, you stand to be sued for a potentially a very hefty amount. Or if you are involved in a position of authority volunteering for a non-profit (such as being on the vestry or an elder at church, or being on the board of a school, camp, museum, orchestra, social club, etc.) you may be personally sued for things like financial mismanagement (you can be sued by creditors if the organization can't pay its bills), work-place harassment, wrongful termination, and discrimination (age, race, religion, sex, etc.) to name a few. Most such organizations carry Directors and Officers (D&O) insurance to provide some level of protection, but it's possible a lawsuit could exceed the amount of coverage provided. At the very least if you are involved in such a way with a volunteer organization you should ask what the D&O policy amounts are. Personally I not only max out the liability portions of both home and auto policies, but I also buy an umbrella policy to increase the amount of liability protection.
    ma0641's Avatar
    ma0641 Posts: 15,681, Reputation: 1012
    Uber Member
     
    #10

    Sep 27, 2015, 10:33 AM
    Couple of thing to consider. Cancelling will short rate your policy and cost you, wait till expiration. Make sure the company you are considering has at least an A rating. Take a higher deductible on the home, I have $5K. Consider EBaines comment "Personally I not only max out the liability portions of both home and auto policies, but I also buy an umbrella policy to increase the amount of liability protection". Absolutely the best way to go, particularly if you have a lot of assets-2 homes, lots of $$ in investments.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Property Insurance [ 8 Answers ]

Party received quote on property insurance that is inviting. But the way it is worded could be a trap. Is there a technique in the insurance game whereby you could confirm the premium before You commit yourself. South Florida From the Insurance Company: The quoted premium is based on...

Insurance while having property in 2 states [ 1 Answers ]

I own a house in Nebraska but want to move to Los Angeles California in September to work and get an apartment for a minimum of 1 year. I want to keep my house in Nebraska to return to eventually. I will have to become a resident of California once I get a job. That means a CA drivers license and...

Property Insurance [ 4 Answers ]

I often wonder what my insurance agent gets out of my renewing my homeowners insurance each year. I am the one who picked the insurance carrier. I pay directly to the company. My agent once a year may Make a recommendation. That's is all he does. I do not know where he came from. I was assigned...

Coastal property insurance [ 1 Answers ]

I'm thinking about putting a bid in on a property beside a beach . I've heard insurance for coastal properties are higher than more inland properties? Is this true?


View more questions Search