GEICO for your home it is a Hartford agent also said because it is historic home

[URDRWHO]

Ok the intrigue continues.

The information we used to create our Hartford quote was from the latest insurance company inspection. Well our Hartford quote is higher than the GEICO quote. Apples to oranges - oranges to apples????

In my original post I forgot to say that this home is an old craftsman home and the owners just recently received their Historical Registry plaque. The GEICO agent told the owner that because it is on the Historical Registry many insurance companies won't cover such places.

Because of the nature of the dwelling, the unique construction, the ornate inlaid hardwood flooring, etc. the insurance companies that write replacement value will want to insurance for a higher value than the owner wants? I know I went through the discussion with the owner. They bought the place for $200,000 and after the inspection the insurance company RC was $596,000. The place is really, really nice and they did get a deal on the purchase price.

I wonder if the GEICO agent was talking about the issue of RC or just ....well just who knows?

When this house was purchased I quoted CHUBB and Encompass Elite, of which neither policies are sold on price alone.

I am in my late 60's and this house is my nephews place -- he is in his mid-fifties. His live in girlfriend, the accountant, is the one that wants a lower priced plan. Girlfriends name is not on the deed or any loan documents. Girlfriend is an accountant, has been a bean counter for many years and looks at bottom line and not benefits. Girlfriend did put a nice chunk of money into the purchase of the house. Put money into the purchase but not on any legal document? I don't get it but whatever, they say they've drawn up papers in case of a split, etc.?

So I've never been thrilled about the arrangement, not morally...that I don't care too much about but the legal thing of insurance. They split up, something happens to the house, the issue of insurable interest comes into play, attorneys are summoned and I could be enjoined in a cat fight. Son one side of me says, hey I'm too old for this crap...just go with Hartford and hope that the GEICO agent has plugged in all the goodies that match your current plan. Then there is side B - I don't want my nephew to be missing any insurance coverage.

I went online and did a Hartford quote. The site pulled up from a database someplace and populated a lot of the spaces. Many of those spaces were wrong. Example - the outside is not siding, it is masonry stucco. There is not carpeting in 80% of the house, it is 90% hardwood with inlaid wood. The replacement cost given is $415,000. So when GEICO guy ran his quote did he use the incorrect boxes.

Once I input the info to come as close as I could to Encompas Elite, the premium was $90 less a year. Which is much different than the $500 savings that the girlfriend said they would get. I'll see what my CISR quote person has form me today. She'e been around the block, has a few alphabets AU CPIW AAI and we'll see. I'm the commercial guy and she does personal lines all day.

"Chip Merlin, president of Tampa-based Merlin Law Group, notes that homes in historic districts that receive tax breaks as a result of being deeded as "historic" need special code coverage and guaranteed replacement cost coverage.

"Before insuring these homes, I would advise homeowners to think carefully about what it will cost to repair the property and get it back to the condition required under their districts' guidelines. Experts such as insurance brokers, attorneys and contractors experienced with historic preservation can assist with this process. If they do not obtain proper coverage, then they may be liable for those repair costs that aren't covered and that can be quite expensive," says Merlin.

Guaranteed replacement cost coverage is a policy add-on that provides extra insurance if your policy limits aren't enough to repair damage. This type of coverage guarantees to pay for all repairs no matter how much they cost. But guaranteed replacement cost coverage is increasingly difficult to find and may require some shopping around. If you can't find it, ask about extended replacement cost coverage, which adds a certain extra layer of coverage on top of your policy limit."

 

[fed up]

First issue I see is the title of the house to your son and the live-ins name not appearing. A total loss will be paid out to the named insured; on a split there is no way to stop someone from leaving with the check and not fixing the home unless there is a mortgage and the check is made out to the named insured and the bank. A recent case in a company I know of surrounds a row home which was insured using city data and suffered a total loss. The house turned out to be underinsured for over 100K. The policy had been renewed for years and was never reviewed by the insured, who sued the insurance company and the agent. A hearing examiner noted that the policy had been renewed for years during which the insured assumed that the coverage was correct and dismissed the case. I would ask the bean counter whether she want insurance or wants to be insured.

 

[URDRWHO]

Yes I know the pitfalls of my nephew walking away with the money.
One of the first things I asked my nephew was "does she want to be on the policy?".

I talked to her on the phone about the quote (quote shows her name). She said that on her last home the insurance company had no problem having her name, her daughters name, etc. --- that the insurance company didn't care. This is me thinking -- oh insurance companies care and they care a lot.
Maybe she was confusing HO and auto? Her daughter did live in her last house with the bean counter, her daughter was a driver of the owned vehicles....so maybe bean counter is confused.

The data that was populated on the Hartford screen also showed the dwelling as two story but it is a three story. On the third floor is where the music room is located, a bed, guitars, keyboards, amps, etc. I didn't know my nephew owned so many guitars and I just asked him how much he has invested in that music equipment.

There is also the big detached 2 car (plus) garage that wasn't populated from the data pulled into the Hartford online system.

So you might see why I am losing the joy on trying to help.

First issue I see is the title of the house to your son and the live-ins name not appearing. A total loss will be paid out to the named insured; on a split there is no way to stop someone from leaving with the check and not fixing the home unless there is a mortgage and the check is made out to the named insured and the bank. A recent case in a company I know of surrounds a row home which was insured using city data and suffered a total loss. The house turned out to be underinsured for over 100K. The policy had been renewed for years and was never reviewed by the insured, who sued the insurance company and the agent. A hearing examiner noted that the policy had been renewed for years during which the insured assumed that the coverage was correct and dismissed the case. I would ask the bean counter whether she want insurance or wants to be insured.

 

[fed up]

The daughter may be listed as an occupant but that doesn't make her a named insured. An auto policy with an operator listed does not make that person a named insured either. If the city data did not include the garage and had misinformation about the size of the home you should be able to make a case for the product you suggest BUT you might be spooning against the tide and never win the argument

 

[URDRWHO]

I agree 100% with the named insured. I was only relating what the bean counter said to me and most people have no idea the value of being a named insured.

Yep - I may be fighting against the tide and I'm reaching the point of too much time invested and too much of a PITA.

It can only be a guess what the GEICO guy used, where he got his info, is his info correct, etc.

The daughter may be listed as an occupant but that doesn't make her a named insured. An auto policy with an operator listed does not make that person a named insured either. If the city data did not include the garage and had misinformation about the size of the home you should be able to make a case for the product you suggest BUT you might be spooning against the tide and never win the argument