Is It Possible to Change Your Agent Within the Same Company?

Discussion in 'P&C Insurance Forum' started by NovembeRain, May 18, 2012.

  1. NCAgent
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    NCAgent Well-Known Member

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    Safeco has a guaranteed replacement cost policy in NC as does Montgomery, a liberty company. Chubb does as well and probably Fireman's fund.

    In terms of guaranteed replacement cost, there is a provision typically seen that says that the home has to be insured to value. Sometimes cost estimators get things incorrect in pricing or they catch things when the cost of rebuilding a home is less. The guaranteed replacement cost provision is mainly there so if for whatever reason the insurance company was wrong in the RC of the home, they pick up the tab. Many GRC policies have inspections done to make sure there is no abuse like what was mentioned before; Chubb did that for a home for that reason. Cost-estimators can be wrong or they can't take into account sudden rate increases. If the agent did his job right you probably won't even need that provision but it is there for people to have peace of mind, which is what insurance is for.

    To change agents you probably just have to do what is called an Agent (or broker) of Record letter. It might be different there but it is a terminology to keep in mind that will at least help you in the right direction.

    Replacement cost is nice like Dan said for the reason that you get new underwear rather than used underwear if something happened. Actual Cash Value (ACV) gives you the money for what the item is worth, which for electronics can be a LOT less than the price to buy a new one.

    I also agree with RBA, I use a minimum square footage on homes of 100/sq foot because that is the highest minimum I find in NC. THEN I add 10-15% more on there because no client knows to 100% accuracy what is in their home for the replacement cost estimator. Every agent handles things differently...
     
  2. djs
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    djs Super Moderator Moderator

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    Examples are easy: State Farm, Farmers, AAA, Safeco, Travelers, many, many, many more. It will vary depending on your location.

    Guaranteed replacement cost coverage (different from extended replacement cost coverage) is something most carriers no longer offer. They got burned on it several years ago by homeowners not having proper coverages and having to pay out many homes all at once. Its a problem when you have a house insured for $100K and have to pay over a Million to rebuild the house (Oakland Hills fires in CA was the beginning of the end of guaranteed replacement cost coverage in CA).

    If the agent has you insured correctly, there is no benefit to guaranteed replacement cost coverage. Normal dwelling coverage with extended replacement is sufficient.

    My guess is the reason for the rate increase is the guaranteed replacement cost coverage and CF is wanting to get people off of this policy. I don't actually know this, since I don't write that policy and don't have access to CF. Yes, I would really recommend evaluating if there are any true advantages to having this policy compared to a properly designed policy with correct coverages. I don't know the premium differences so I can't give a solid recommendation one way or the other.

    Dan
    - - - - - - - - - - - - - - - - - -
    I meant to add that the gazebo you mentioned is not part of your dwelling coverage. Its usually under separate structures, unless its attached to the house.

    Pools are usually not part of the dwelling coverage either.

    Dwelling coverage is for the house and things permanently attached to the house.

    Reconstruction costs vary widely in different parts of the country. $100 or $125 a square foot would get my appointments pulled in CA. I need at least $150, more like $175 a square foot, at least in my area. My point being (and I think you already know this) is you can't worry about a $/sqft calculation done elsewhere. It has to be done based on your home and the characteristics of your home, especially since it doesn't sound like its the typical cookie cutter, same as every other house on the block, tract-style home.

    Dan
     
    Last edited: May 23, 2012
  3. NovembeRain
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    NovembeRain Member

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    Our Sq ft is 3,526 so insured dwelling is ~$127 per sq ft, but it looks like we will need more without an additional replacement cost, most likely ~$150-160 per sq ft. if we can make sure every fancy addition inside will be covered/replaced. Otherwise, we will be overpaying. Just for the house structure alone we do not need more coverage.

    Can I PM you later on?

    *************************

    djs, for some reason my reply to you did not show up, so I resubmitted it. Then I saw that you already replied to it (but mine initial post is still invisible) Something strange :) Anyway, gotta run, will come back later. Thanks!
     
    Last edited: May 23, 2012
  4. krishnan4
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    krishnan4 New Member

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    hip. Is it possible to switch to a different office? How do I proceed? Who do I contact? Can I contact a new office and ask them to take my file over? Will a new agent get any % ? I understand no one wants to work for free. I just want to know why they raised the premium and I want someone at least to pretend that he/she cares about their clients. I cannot guarantee that I will stay with Country, (it depends on why the premium was raised and if a new agent will be better), b
     
  5. adamhawley
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    adamhawley Well-Known Member

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    NOV,

    From a guy who now does marketing work, and no longer is an Insurance Agent, I want to say that I'm very impressed with all the posts to your original question. They're all spot on, and well written. I'd love to provide additional help for you, but they've said it all!

    Well, done you guys! :biggrin:

    P.S.

    Nov, it's not every day a consumer is so interested in protecting their home properly. I commend you for being an educated/interested homeowner.
     

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