Quote:
Originally Posted by gramaluz
American Integrity has once again raised our yearly home owner policy by 1300 dollars!
2 years ago it was 857.00 last year we had one claim for a water leak in 18 years .it then went up to 1,121 this year it is 2,418 and no claims! Did every one experienced such an increase?
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I was in the insurance business for over 20 years. Property and Casualty companies work differently than Life Insurance companies. P&C companies raise rates based on "poor claim experience. For example, Hurricane Andrew, in 1992, caused of $23 billion in damage Florida alone. After paying the claims, some of the largest property insurance companies in the U.S. (Consolidated, State Farm, etc.) stopped doing business in Florida. State Farm, for example, avoided Florida like the plague, until the Insurance Commission threatened to cancel their Florida license. To save their license, the company then introduced a new line of homeowners coverage that was priced so high that no one would buy it.
Yes, all the roofing claims will eventually cause increased rates. The companies will pay the claims, raise everyone's rates and lose customers. They made a great deal of profit during all those years you did not make a claim.
My American Integrity rates went up 50% over a two year period. I checked around and signed a contract with Farmers. The rate was about the same as the AI rate two years ago, with more coverage. Farmers sent an inspector over to examine the house before they would write the policy. When the roofing contractor knocked on my door, I called Farmers and asked if they inspected my roof. I was told that they did, that it is Architectural Shingle, built to last at least 30 years and if there was any need for a new roof in the near term they would not have written the policy.
I really don't understand why, when a guy knocks on your door and asks if he can send an inspector up to check your roof and your say, OK. Do you really think that he is going to come down and say it's fine - no repair needed, as he holds the shingle that he just pried up from your roof? Last month, I had a landscaper come by and he told me that, as he was driving past my house he noticed that I have termites in one of my trees and it should be removed or treated. (My, Grandma, what big eyes you have!) I said, Thank you, I'll call my pest company.
I don't know if any of you readers are old enough to remember an old TV show, "Racket Squad" (1951-1953). They closed each show with this caution - "There are people who can slap you on the back with one hand and pick your pocket with the other. And it could happen to you."