Smart Spending

By dell

January 8, 2009 12:41 PM | Link to this

My homeowners policy was 500 ded., and 389.00 a year, until we had a hail storm 2 years ago. After having to have a new roof, and siding installed last year due to damage, the policy premium was increased by the insurance company to 986.00 a year, increasing my mortgage payment. I have my car insurance with State Farm for 82.00 per month. I guess I should have one company for both, but I don’t know which company to use since there are so many negative stories about State Farm homeowners policies after Katrina. My car is 5 years old and I think my 82.00 per month premium is okay.

By AJ

January 8, 2009 1:03 PM | Link to this

My wife and I carry the standard deductibles mentioned above.

On our auto policy, I bumped up the coverage on property liability to 300K and medical payments to 50K. We have full coverage on my truck and wife’s accord. We pay about $1400 a year total.

Our homeowners is through a partner of our auto policy and it is $500 year on a $200,000 2300 sqrft. home

By Brian

January 8, 2009 1:04 PM | Link to this

Having all you policies under one company definitely saves money. As for $410 per year for a 5 year old car:

By nana

January 8, 2009 1:06 PM | Link to this

We have raised our deductibles on the vehicles to $1k for collision and $500.00 for comp. We have a $2500.00 ded. on our homeowners, they are with the same company. When we did this we saw our premiums nosedive. This will keep you from being tempted to turn claims in that are really not worth it in the long run as the premiums will go up with a claim. While that doesn’t seem fair, especially if you’ve had coverage with the same company for a long time with no claims, it is the way it is.

By reservoirDAWG

January 8, 2009 1:15 PM | Link to this

Find a local independent agent. They represent many companies and can shop your business. Companies such as State Farm and Nationwide are captive and only have one product. As for deductibles, $1000 or more on homeowners and for auto I would suggest $250 for comp and $500 or $1000 on collision.

People would be surprised as to how much their insurance score (i.e. credit score) plays into their premium.

By Leigh

January 8, 2009 1:18 PM | Link to this

Take it from an inusrance agent with 20+ years experience, State Farm is a great company. Keep all your policies together for the discounts. Keep the home deductibles high and try to keep your claims limited to major losses. The best advice I can give you is get a GOOD agent. They will give you the BEST advice and save you the MOST money.

By reservoirDAWG

January 8, 2009 1:20 PM | Link to this

Nana, not necessarily. The problem is a lot of people try and use their Ho policies as a maintenance plan. If for instance you have hail damage, your premium should not go up. That is an act of god. If it does you should definetly shop your business.

By Neidra Bryant

January 8, 2009 1:28 PM | Link to this

All consumers should check make sure they have a good Agent. One that will review your policies at renewal and make sure they are getting the premiums & coverages available. Your independent agent has many markets to go to. The best is an Independent Agent, they work for the consumer.

By reservoirDAWG

January 8, 2009 1:35 PM | Link to this

I agree with Leigh. The most important part of buying insurance is finding a good, knowledgeable agent.

By Dan Stewart

January 8, 2009 2:14 PM | Link to this

Stay away from State Farm. Every home on my street had hail damage and they were all replaced and my claim was denied. Guess who my insurance company was, you got it. STATE FARM.

By micha

January 8, 2009 2:14 PM | Link to this

Leigh, it’s obvious you work for state farm with a statement like that. I’m an independent agent (14yrs) and would never reccomend state farm to anyone. My rates at Allstate are half what they were with state farm and they have never jacked my rates without a reason like state farm did. As the others say, find an agent (with at least 5 years experience) and use them for all your insurance needs. Oh and my 5,288 sq ft house with a 1,000 deductable and 450k in coverage is only $749 a year. Shop that with state farm.

By clyde

January 8, 2009 2:19 PM | Link to this

The most important part of buying insurance is to know what you need.Shop around and buy it at the cheapest price.

By Daxter

January 8, 2009 2:47 PM | Link to this

Looking at the intital article, I see something that makes me cringe. Those of you who are insurance agents should be able to answer this —

IF a tree is dead or damaged or covered in ivy or otherwise “precariously close” to falling, I have known insurance companies to deny a claim when it falls. Their position is that the homeowner should have known it was in a “precarious” state and should have taken it down.

(I know the covered in ivy part particularly because of a neighbor’s tree many years ago. The tentacles of the ivy plant get behind the bark and weaken the tree. If an adjuster sees the tree lying on the ground with ivy on it — no payments! They will say the tree was not maintained properly.)

By Observer

January 8, 2009 2:55 PM | Link to this

Like other posters here, I am an independent agent with many years’ experience. Although I don’t have personal experience with State Farm, I have heard anecdotally from SEVERAL people latlely about State Farm denying roof claims after the storms last March.

Of the companies that I represent, the best claims satisfaction comes from Travelers and MetLife. I would encourage anyone shopping for insurance to visit the JD Power & Associates website and check out the claims satisfaction numbers for the company they are considering. Claims service is the reason you pay premiums.

As for ways to save money, several good ideas have already been presented regarding increasing deductibles. The one thing I would worry about is people trying to save by reducing liability limits on their auto policy. The savings for doing this is minimal and the increased risk to you personally is tremendous. Don’t be penny wise and dollar foolish.

By Observer

January 8, 2009 3:07 PM | Link to this

Daxter - You are correct. There is no coverage for a fallen tree if the owner should have reasonably known it was damaged or diseased. The ivy example you gave is a good one but the simplest determinant is whether or not the tree sprouts leaves in the spring. If it doesn’t, take it down.

Another common misconception about tree claims is when a neighbor’s tree lands on your house or car. Most people think that’s the neighbor’s claim but it’s not (unless the tree was damaged or diseased). The policy covering the damaged property is the one that pays and if the tree strikes BOTH the house and the car, it’s going to be two claims - one against each policy.

By Observer

January 8, 2009 3:14 PM | Link to this

reservoirDAWG makes an excellent point about the importance of good credit when shopping for insurance. Almost all of the major companies writing in Georgia now use credit scores (they call them insurance scores) as one of the MAJOR criteria in determining the rate. In many cases, your credit is more important than your driving record.

For those with poor credit but a good driving record, I would recommend you look at Farm Bureau. They are they only major company I am aware of that does not yet use credit - however, they will not write you with a prior bankruptsy or foreclosure.

By nana

January 8, 2009 3:27 PM | Link to this

reservoirDAWG you do make some good points but I have to disagree with you on one point. I never had an claim in over 25 years on my homeowners but when I had a hail damage claim my policy was surcharged for 3 years. I did not change carriers as at the time my son was on our auto policy and due to his age every other carrier I called was higher on premiums due to his age. I am an independent adjuster and have handled some claims for AllState and State Farm and they both leave a bit to be desired on 1st party property losses. Allstate has a habit of replacing only 1/2 of an insured’s roof if only one side was hit by hail. That’s ridiculous. We have a very good agent and still periodically check around for rates. Like another post says though do not lower your liability or uninsured motorist limits to save money.

By BBB

January 8, 2009 3:30 PM | Link to this

I am an independent agent as well and I recommend spending a few hours reviewing our auto and home policies every year. If you see something you don’t understand- call and ask- it is our jobs to know and understand your policies and have you covered in the case of an incident. Everyone please check your water backup coverage- we have multiple claims a year from sewage and water damage and people never have enough coverage. Also- raise your home liability to at least $300,000- it is only about $2 more a year for a lot more coverage. Autos- think about that windshield- if you use your comp- do you want a $500 deductible? $250 is the way to go and it is not a lot more either. Knowledge is power when it comes to insurance. Have high medical payments and liability-and check the new state law on uninsured motorist coverage too. Good luck and I second on the Travelers- they are great with claims!

By Paul

January 8, 2009 3:43 PM | Link to this

I, like nearly everyone else that has posted, am an insurance agent. I agree with most everything stated above with the exception of the last poster. You should not insure anything with Farm Bureau. While their policy may be the cheapest, especially if you have poor credit, you will not have the same level of coverage or financial security that is available with another company. Keep in mind that your insurance agent is not your mom. Look out for yourself and your property. Also make sure that your home is insured for its REPLACEMENT cost not its current cash value. In my area most homes should be insured at $90 to $100 a square foot.

By Daxter

January 8, 2009 3:55 PM | Link to this

Paul — you’re the first person I’ve ever heard give a complaint against Farm Bureau. I’ve used them for over a dozen years and was attracted to them because they are a cooperative. (I had dropped State Farm after decades once I saw the debacle of what they did to those hit by the tornado in Dunwoody.)

I had a washing machine hose bust in my house, which caused major damage to the floors on the first floor and basement. Farm Bureau covered every penny with no hassles and my rates never went up.

What makes you say they’re no good?

By reservoirDAWG

January 8, 2009 3:57 PM | Link to this

I wonder if anyone not involved in insurance in one capacity or another is reading this blog.

To all the other agents: How many calls are you guys getting daily about the new UM laws?

By reservoirDAWG

January 8, 2009 4:03 PM | Link to this

Also consider the amount of advertising dollars Statae Farm, Allstate and the like have on TV and radio. Independent agents use a lot of A+ rated companies that don’t advertise and keep there premiums down for the right insured.

By nana

January 8, 2009 4:04 PM | Link to this

Another thought about turning in a loss to homeowners for “maintenance”…a good adjuster would realize that it was a maintenance issue and coverage would not apply.

By Observer

January 8, 2009 4:07 PM | Link to this

reservoirDAWG - Probably 85% of my renewal policies are calling me regarding the new UM law and required election/rejection form. I wish there was a standard ACORD form instead of every company using their own. My clients have found it VERY confusing.

By John

January 8, 2009 4:38 PM | Link to this

What you should do is suspend your insurance just on that one car. Call your insurance agent and let them know that no one is driving the car. When you do this it usually only covers comprehensive on the car and it only costs around $65 or so every six months. I’m a insurance agent is Atlanta.

By reservoirDAWG

January 8, 2009 4:41 PM | Link to this

Observer, I know. We’re at about the same percentage and with something like that they don’t want a csr, they want their agent. Part of the job though.

By Observer

January 8, 2009 5:24 PM | Link to this

John - The only way to legally suspend the liability coverage on a vehicle in Georgia is to surrender the registration. As long as there is a valid tag on the vehicle, you are required to carry liability insurance. The state tracks this electronically and will issue a fine to the owner of any vehicle that is uninsured for even one day.

The other option many people consider with an idle vehicle is lowering the limits to the state required minimum while it is idle. The problem with this is that most companies won’t allow you to lower the limits on a single vehicle.

By Dan

January 8, 2009 6:47 PM | Link to this

Funny, people pay $100/Mo for car insurance have $500 - $1000 deductables and may not make a claim for 20 years and they are ok with it (mostly cause they see it as a safety net) But someone pays a couple of hundred a month for health care goes to the doctor 2-3 times a year b*** about a $20 copay. If people would view health ins like car ins instead of viewing it as a right that someone else should pay for we would all be a lot better off

By regularjoe

January 8, 2009 7:13 PM | Link to this

I just now sat down to read this blog, and to answer someone’s question, am not in any way affiliated with the industry other than as an individual who recently switched to State Farm. I’m wondering if I made a mistake… I didn’t realize about the Dunwoody tornado issue, I wonder why they denied claims the way they did? Is that likely to change given the negative publicity? Now I don’t know what to do.

By 89Eagle

January 8, 2009 7:41 PM | Link to this

I, like nearly everyone else that has posted, am an insurance agent. I agree with most everything stated above with the exception of the last poster. You should not insure anything with Farm Bureau. While their policy may be the cheapest, especially if you have poor credit, you will not have the same level of coverage or financial security that is available with another company. Keep in mind that your insurance agent is not your mom. Look out for yourself and your property. Also make sure that your home is insured for its REPLACEMENT cost not its current cash value. In my area most homes should be insured at $90 to $100 a square foot. Most ethical agents wouldn’t critize another company I had a claim on my home and had no problem getting paid. Be Careful when you make bold statements.

By George

January 8, 2009 7:42 PM | Link to this

Buy your insurance from an INDEPENTDENT AGENT, We represent you, and usually have 7-10 different carriers. Recently, I comparied Progressive Direct, and Geico and our rates were lower than the direct companies too. A&A Insurance located in Peachtree Corners 770/368-1297.

Thanks for the free press.

Louie Abdou President Gwinnett Association of Independent Agents. 770/368-1297

By nana

January 8, 2009 8:00 PM | Link to this

I was not aware of Farm Bureau being inexpensive or as one post said that the level of coverage wasn’t good. How is that? You get what you pay for or are you talking about the forms they use, they’re not ISO forms? I’m not sure they are a bad company. I have dealt with Farm Bureau people on the claims end and they’ve been ethical, prompt, fair, etc. Can’t say same thing about some better known companies.

By ClaimsGuy

January 8, 2009 8:05 PM | Link to this

The remarks made by Daxter & a couple of others about claims, rate hikes, etc… just goes to show you that either my industry does not do enough to educate or that people want to slant how things actually occur. When a tree is rotted and just falls on your home, if your policy does not have falling object coverage, the loss is not covered. If a windstorn blew the dead tree over, if you have windstorm coverage, the loss is covered. Same loss, two different results based upon the policy you purchased!!! It does not matter if your agent is independent or captive, if they are properly educated and concerened about their client base, they will provide you with good advice. If you can afford to write-off $1000 for damages you do to your car in an accident, then carry a $1,000 deductible. Your premium decreases, but you carry the first $1,000…simple concept. If you cannot afford it, don’t do it. Shop around and talk to your friends/neighbors about claims, service & price.

By Maryanne

January 8, 2009 8:25 PM | Link to this

I can’t say anything good about State Farm. A former co-worker had her boat, car, house and RV insured with them. They cancelled ALL her policies when she had a claim on her house due to storm damage. I have been insured with Allstate for close to 25 years. I agree with the guy who said his rates were half with them versus State Farm. I get a good driver discount, plus since I have three policies with them, a discount for multiple policies.

Here’s a radical idea in regargds to car insurance: how about some visionary in the General Assembly this year introducing a bill that would make it optional for good drivers (a minimum 10 year no stop no ticket record.) It would put millions into the state and years ago, you were allowed to self-insure if you posted a bond with the state.

By dell

January 8, 2009 8:28 PM | Link to this

I had the first question, and I am not an agent. I have read some good advice on insurance, thanks to you. I do have State Farm on the car but not the house, and I don’t think I will let them insure the house. I will shop around for an independent agent and let them insure me for both. Thanks!!!

By tina

January 8, 2009 8:43 PM | Link to this

the biggest kept secret is Ameriprise. they are owned by American Express. I have been with them for home/car since 1990 when I first moved here. I insure a 2008 Camry, 2003 Avalanche and 1998 4Runner. I pay $801/6 months. Full coverage for all 3 cars. My ded are col-1000, prop dam - $250. I also have towing and loss of use for up to 30 days. I would not trade them for the world. The bill your 6 month premium on a 5 mnth basis. So you get 2 months of no premiums. so I pay $160/m. but one thing. you must have excellent credit and no moving violations in the past 3 years. once you get one, you are penalized.

By Kathy

January 8, 2009 9:00 PM | Link to this

I am amazed at the low premiums for expensive homes. Obviously you are getting bare bones coverage. Another fact, your credit score and previous liablity limits play a part as well as claims, tickets and accidents. You need to check your coverage if you are paying $500 a year for a $250K home. No wonder claims get denied. You get what you pay for. Read the policy. for guaranteed replacement on home and contents. Nuff said.

By Mandy

January 9, 2009 8:20 AM | Link to this

As a homeowner claim represenative for a major insurance company it is funny to read comments for some. you need to know your policy. that means read it and ask questions to your agent if you don’t understand something. People get upset when you deny a claim.. Again, not everything is covered. HO insurance is there for major losses, not petty claims such as my 52inch tv was hit by lighting and I can’t get through the day without it. granted it’s covered but not worth your premiums going up or even being canceled.. I think most insurance companys pay what they owe.. To bad most people think their insurance is an ATM.. Gues what… It’s not…

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January 9, 2009 11:43 AM | Link to this

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