Wow, over $3000 a year on a $200k home. I have no idea what endorsements that you may have or if that is a fair rate in Florida but in PA that rate would 1/4-1/5 of that. As a matter of fact, top coverage with every endorsement under the sun and 25K in scheduled property wouldn't break $2k a year. I would shop around for sure but maybe some of the Florida P&C guys can better tell you if it's a fair rate (granted their would need to be a lot more detail).
Premium Increased After Signing Policy
- Thread starter eci313021
- Start date
That rate is not too uncommon in Florida. Although it does sound like a Citizens rate. Shop it around. Citizens did change their replacement cost valuation system not too long ago and it tends to come in quite a bit higher than it used to. The agent should have re done one, but mistakes do happen sometimes. Take your business from him to another agent. Although, if you are with Citizens, you are there for a reason, as they are the insurer of last resort, so your premium most likely won't change. Do you still have the application that you signed?
- Thread starter
- #13
The policy is with a company called Universal Ins. Co of North America (based in Ft Worth, TX). The hurricane portion of it is with Citizens, I believe.
I've already paid the down payment ($685.00), but haven't made the first installed payment ($295.00 not due until May 3rd), so do I have any recourse on this??
thanks again for everybody's input (this has been a real eye-opener)!!
I've already paid the down payment ($685.00), but haven't made the first installed payment ($295.00 not due until May 3rd), so do I have any recourse on this??
thanks again for everybody's input (this has been a real eye-opener)!!
I do not know much about the area you are in, but I do represent that company. Their rates (atleast in my area) are poor to say the least. They also exclude sinkhole coverage unless you get a prior inspection and the inspection appears favorable. Shop around with another agent, and you should be able to get a much better price. That price seems high without wind included.
Back to the original question.... and I'm giving a California answer, each state will vary, but the concepts usually remain close to the same.
FL P&C Broker is correct, you signed an application. It is the agents and carriers responsbility to make sure the home is insured for the full value of the replacement cost. If not, you can end up with some pretty significant co-insurance issues you don't want to get into. Basically, all this means is there is some weasel language in the policy that says if you are not insured correctly, then a claim will not be paid correctly (meaning not as expected). You don't want this to happen.
An agent should, when quoting or binding a policy, run the house through a reconstruction cost estimator, to make sure they can defend the coverage amount. The best thing to do is to have the agent walk through the house with you to make sure it is adequately protected. Not everyone will do this, but they should ask you a series of questions about the characteristics of the home.
In this case, the carrier used some public record information and paid someone to do an 'exterior' inspection of the house (pretty normal). Based on the reports, they figured there was not enough coverage. In California, they have 60 days to make these changes, this is shown on the application that you sign. You might have a different underwriting period, but I'm sure it exists. After that, the carrier is stuck with the policy as it is written at that time, until the renewal.
Don't worry about what others here say the premium should be. Premiums vary drastically from location to location, with a variety of underwriting issues on each general area. They are right though, there are different styles of homeowner policies available. If your current agent can't work with your budget, find a new agent that perhaps has some different alternatives.
Rates are funny things. In California, I don't worry about sinkholes, but I do have wildfires. I don't worry about tornadoes, but mudslides happen. I hate having to explain to a client why their flood policy from the federal government is $3000 per year, and yes, their lender can require it. 2 streets over, the same policy is $300 a year. It happens.
Dan
FL P&C Broker is correct, you signed an application. It is the agents and carriers responsbility to make sure the home is insured for the full value of the replacement cost. If not, you can end up with some pretty significant co-insurance issues you don't want to get into. Basically, all this means is there is some weasel language in the policy that says if you are not insured correctly, then a claim will not be paid correctly (meaning not as expected). You don't want this to happen.
An agent should, when quoting or binding a policy, run the house through a reconstruction cost estimator, to make sure they can defend the coverage amount. The best thing to do is to have the agent walk through the house with you to make sure it is adequately protected. Not everyone will do this, but they should ask you a series of questions about the characteristics of the home.
In this case, the carrier used some public record information and paid someone to do an 'exterior' inspection of the house (pretty normal). Based on the reports, they figured there was not enough coverage. In California, they have 60 days to make these changes, this is shown on the application that you sign. You might have a different underwriting period, but I'm sure it exists. After that, the carrier is stuck with the policy as it is written at that time, until the renewal.
Don't worry about what others here say the premium should be. Premiums vary drastically from location to location, with a variety of underwriting issues on each general area. They are right though, there are different styles of homeowner policies available. If your current agent can't work with your budget, find a new agent that perhaps has some different alternatives.
Rates are funny things. In California, I don't worry about sinkholes, but I do have wildfires. I don't worry about tornadoes, but mudslides happen. I hate having to explain to a client why their flood policy from the federal government is $3000 per year, and yes, their lender can require it. 2 streets over, the same policy is $300 a year. It happens.
Dan
DALwrites
New Member
- 11
The first thing I would do is get a copy of the inspection from your agent. Based on the value of your home, they likely only completed an exterior inspection, so the data used to calculate the replacement cost may not be correct.
Most "low value" (i.e. non-interior) inspectors pull up to the property, hop out of their car, complete a quick exterior measurement, snap a couple pictures, and leave. When they go back to the office to input this information, they let their replacement cost calculator default to most options (grades of kitchens/baths, number of baths, floor/wall/ceiling finish, etc.). Most replacement cost estimators will default to custom kitchens/baths and various percentages of wood/vinyl/tile flooring, which may not actually coincide with your home.
In other words, maybe you have very basic kitchens/baths, and the estimate calculated custom. Perhaps you have 2 full and 1 half baths, and the system calculated 4 full baths. Maybe you have 100% tile flooring, and the system calculated 90% wood flooring.....All of which will have a negative impact on your replacement cost.
In addition, most of these inspectors are fairly lazy (I know I'm generalizing, so I apologize if I'm offending anyone - I'm sure there are good ones out there), and if the back of the home is behind a fence or gate, they will often just guess what the full measurement of your home is. Therefore, your square footage may be off.
If you find any discrepancies, let your agent know. They should be able to get your carrier to update the information (and hopefully reduce your replacement cost).
Most "low value" (i.e. non-interior) inspectors pull up to the property, hop out of their car, complete a quick exterior measurement, snap a couple pictures, and leave. When they go back to the office to input this information, they let their replacement cost calculator default to most options (grades of kitchens/baths, number of baths, floor/wall/ceiling finish, etc.). Most replacement cost estimators will default to custom kitchens/baths and various percentages of wood/vinyl/tile flooring, which may not actually coincide with your home.
In other words, maybe you have very basic kitchens/baths, and the estimate calculated custom. Perhaps you have 2 full and 1 half baths, and the system calculated 4 full baths. Maybe you have 100% tile flooring, and the system calculated 90% wood flooring.....All of which will have a negative impact on your replacement cost.
In addition, most of these inspectors are fairly lazy (I know I'm generalizing, so I apologize if I'm offending anyone - I'm sure there are good ones out there), and if the back of the home is behind a fence or gate, they will often just guess what the full measurement of your home is. Therefore, your square footage may be off.
If you find any discrepancies, let your agent know. They should be able to get your carrier to update the information (and hopefully reduce your replacement cost).
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In Florida, every home (with the exception of a very small percent of homeowners that work for the government, and those that are protected) and the features of the home are listed on the property appraiser's website. Exact Sq footage, additions, screened enclosures etc. There is no guessing or estimating. The Replacement cost sytem used by that carrier is 360 Value, which tends to be high, but unfortunately, they default to builders grade kitchens, bathrooms, vinyl flooring at 20% carpet at 80% etc. so it defaults to a very basic home. Their figure is always a little bit higher than MSB and the ISO homevalue is no longer in use by any of the carriers in Florida anymore. Universal of North america used to use the Isohomevalue program, which always came in very low even under $100 per square foot often, 360value is quite a bit higher than that so that could be part of the issue, although I honestly don't think the agent filled it out correctly, or at all.
DALwrites
New Member
- 11
Good to know. I appreciate the heads up. I know FL tends to be different from most other states in many regards (insurance-wise), and I see inspections are included in that long list.
- 620
just call some local brokers, get some quotes. You can always cancel your policy.
- 624
Thats too bad about the increase in premium.... If you aren't happy, just find another company and cancel.
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