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1manshow: Care to share that loss sheet? I'd really appreciate it!!!
H03 Vs H05
- Thread starter InsuranceRus
- Start date
yes please
PolicyHolder
New Member
- 2
I have a couple of questions for the experts on this thread concerning this subject. First of all, I have a home insurance quote that states a protection class of 05 (zero five). Is this "protection class" referencing what you all are speaking of in H03 and H05? The reason I ask is that I obtained numerous quotes from companies such as AllState, Farmers, State Farm, Travelers etc... American Strategic Insurance undercut all of them by more than 50%. Assuming that I customized the coverages to match those that were much more expensive, why is their coverage so inexpensive? Very inexpensive, $490 per year. I question the legitimacy as you all are stating that H05 is more expensive. Then again, I do no tknow if that is the same parameter as Protection Class: 05. Can someone please clarify?
Protection class is the rating for the responding fire department and the availability of water at the residence. Protection class 5 basically means it will take a while for the fire department to get there, but that you have a hydrant or other water available to the house to put the fire out.
Depending on where you are, you can also be 'fireline' rated, which is shorthand for how likely a brush or tree fire will get to your house. California uses this a lot.
Protection class has nothing to do with the policy form, though some carriers will not offer all policy forms in all protection classes (especially 9 & 10).
I know nothing about American Strategic. I always get nervous when something is half-price though. They are either buying into the market, or something significant isn't covered. There is no free lunch here.
Dan
Depending on where you are, you can also be 'fireline' rated, which is shorthand for how likely a brush or tree fire will get to your house. California uses this a lot.
Protection class has nothing to do with the policy form, though some carriers will not offer all policy forms in all protection classes (especially 9 & 10).
I know nothing about American Strategic. I always get nervous when something is half-price though. They are either buying into the market, or something significant isn't covered. There is no free lunch here.
Dan
- 995
ASI is AM best rated, I think they have been around for 11 years or so.
PolicyHolder
New Member
- 2
Thank you Dan, I appreciate the response. I put this policy quote up against that of my mother and father's current policy and it seems to have better coverage than their pricier policy. There is nothing blatantly obvious, to me, therefore I will need to do some more investigating. I agree with your attitude when something sounds too good to be true. Again, thanks for your response.
Hey there Policyholer, looking over a quote is NOT the same as reading the company's actual policy. In my own experience, most captive agent's only know what they have been taught by their district manager (not a great source of INDUSTRY knowledge). I don't blame them as becoming a captive agent usually means that they have NO previous insurance knowledge. But my point is that, as a consumer, it is very difficult to get quality information from a captive agent, but many indy agents who sell personal lines are very knowledgable because many have come from the captive side first. As an example, a Farmers agent on this board, Todd02, thinks that Farmers has a great home contract, but doesn't know that in the industry, Farmers Next Gen contract is nothing more than a well written HO 2 (named perils on structure and contents). A consumer would never know that important information from looking over a proposal.
superdave45040
Expert
- 30
The ERIE Ultracover is an HO-5 with Guaranteed Replacement Cost Coverage on the dwelling. The State Farm policy offers only extended replacement (dwelling coverage + 10%).
That is to say there is no limit to what the insurance company will pay on the dwelling coverage with guaranteed replacement cost.
An extended replacement cost policy pays a fixed amount of money. If that's enough to replace your home great. If not you need to reach into your own pocket and come up with the difference.
I moved from San Diego in August of 2007 about a month before the wildfires hit the area I lived in. Unitedpolicyholders (a non-profit group) estimates that 2/3 homeowners did not get enough money from their insurance company to rebuild and that the average shortfall was something like $200,000.
Two issues: according to MSB (msbinfo.com) 2/3 homes across the US are underinsured by an average 19%.
The second issue is when you have a major disaster like this construction prices go through the roof.
If the premium were the same would you choose the policy that pays you a fixed amount of money to rebuild your home? Or would you choose the policy that pays to rebuild your home without limit?
To me it's a complete no-brainer.
PS The 4 companies that I know of that still offer guaranteed replacement cost are ERIE, Chubb, Fireman's Fund & Met.
That is to say there is no limit to what the insurance company will pay on the dwelling coverage with guaranteed replacement cost.
An extended replacement cost policy pays a fixed amount of money. If that's enough to replace your home great. If not you need to reach into your own pocket and come up with the difference.
I moved from San Diego in August of 2007 about a month before the wildfires hit the area I lived in. Unitedpolicyholders (a non-profit group) estimates that 2/3 homeowners did not get enough money from their insurance company to rebuild and that the average shortfall was something like $200,000.
Two issues: according to MSB (msbinfo.com) 2/3 homes across the US are underinsured by an average 19%.
The second issue is when you have a major disaster like this construction prices go through the roof.
If the premium were the same would you choose the policy that pays you a fixed amount of money to rebuild your home? Or would you choose the policy that pays to rebuild your home without limit?
To me it's a complete no-brainer.
PS The 4 companies that I know of that still offer guaranteed replacement cost are ERIE, Chubb, Fireman's Fund & Met.
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