Is This Normal?

[pecosins]

Yes, it is. I just had the discussion with one of my clients yesterday. I told him that we look into new replacement calculation and shop around. I knew MSB had 6% rate up last year when We don't feel construction cost go up that much.

One thing you may not pay attention: new home discount is reducing annually and gone after some years depending on companies. Older home has surcharge.

Combination of new home discount and inflation could make significant impart on renewal rate.

Please do not yell to your agents.

 

[robb01]

We recently had a carrier that switched replacement cost software, they were using E2Value and switched to MSB. It created a huge problem, because apparently a lot of our policies were under estimated, although I don't believe they were. The rates increased considerably, and we've had to move a number of clients to different carriers.

 

[Insurance-Guy]

The company is Progressive Home Advantage, underwritten by Homesite Ins comp of GA.

After over 1 hour on hold I got someone.

My home is 1890 sq feet. It went from $405 last year to $614 this year.

The coverage amounts really didnt go up much. I think it is because it they changed names from of the midwest to of GA.

I wouldn't insure my shed with homesite! Call around. I would bet money I could get you better coverage and a better rate if you were in MD! Also I understand homesite had some huge claim problems and Progressive is using another company for their homes at least around me!

 

[JCK818]

Shop it around Mark!

 

[Indiana_Adam]

Mark, our actuaries tell us credit has a positive correlation with more responsible individuals. Higher credit, more likely to pay your bills on time. And your mortgage only pays it for as long as you're paying them :-p

They do the same thing for auto insurance. Higher credit, more likely to make payments, less likely to file silly claims.

 

[TeePee]

In my area we have many companies that have switched to ISO protection class. So the legal responding fire department is correct. This can make a huge impact on your rates.

I HATE ISO!!!! We are an area of split town class and this has caused so much heartache to me going through the appeals!!!!

OP as far as credit, it has little to do with your bill getting paid. The better your credit rating, the more likely you are to correct simple home issues and maintain your property. Same with auto. If you are responsible enough to keep a good credit rating, you are more likely to keep brakes fixed, not ride around on bald tires, etc.

And yeah, don't yell at your agent. It is not like THEY are the ones that price the product in your market.

 

[Chevarian113]

Mark,

I just want to throw in a few things I've learned, as this is my primary focus...

Homesite is crap. Run.

Prices are increasing for many reasons. Some are regional risk, some are portfolio reasons, some are claims experience/ future anticipation.

Reassess your dwelling as noted above, just don't sell yourself short. I would never insure for under $100 per sq foot, and would only go that low if the increased dwelling option is selected (gives a total of $120 per sq ft).

Credit is taken into consideration for several years now on this, primarily as a propensity to file claims. Typically, one with good credit will take more responsibility with repairs and maintenance to their home, mitigating losses. This saves all money, so it is rewarded. Of course, there are exceptions to this, but generally, in my experience, I've noticed it is fairly accurate. Low scored clients usually call as soon as a single shingle has blown off the roof in a storm.

Oh, and go with a company that has an agent so you're not holding for 2 hrs.

Happy hunting.
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Mark, our actuaries tell us credit has a positive correlation with more responsible individuals. Higher credit, more likely to pay your bills on time. And your mortgage only pays it for as long as you're paying them :-p

They do the same thing for auto insurance. Higher credit, more likely to make payments, less likely to file silly claims.

Just saw this. Yes, silly claims. This is what costs us all time and money.

 

[Mark]

What I dont get is that I have great credit. But I do have a home and car loan. They wrote me that to get the best rate they dont like you to owe out more than 11k. WTF?

 

[Indiana_Adam]

That does seem silly. You should shop it like everyone has suggested 11K is nothing. Besides, it seems pointless to account for debt alone. Debt to income ratio makes way more sense, but does not appear to be the case.

 

[pecosins]

We recently had a carrier that switched replacement cost software, they were using E2Value and switched to MSB. It created a huge problem, because apparently a lot of our policies were under estimated, although I don't believe they were. The rates increased considerably, and we've had to move a number of clients to different carriers.

I know which one you are talking about. Actually, when we used the old one, I always added $20 to $30K to dwelling because of I feel it was too low. MSB is too high.