Quote:
Originally Posted by RedChariot
What is your take on this type of insurance. KIN, Loggerhead, Towerhill, just to name a few are in business about 5-6 years. They claim to have low premiums with equal coverage. How safe do you feel contracting with a company like this as opposed to a national company such as AAA, All State, State Farm etc.
Not to cloud the issue but I have read that most of us are underinsured regarding replacement value of our homes. If home is a total loss due to a lightning strike fire or hurricane, would your replacement value cover the cost to rebuild your home with all the upgraded surfaces etc you presently enjoy? Or are you only insured enough to replace the basic building? Lumber, Labor costs go up every year. Do you upgrade your policy periodically to reflect present day costs?
Your thoughts on both issues presented would be most appreciated.
Thank You
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That’s good question and you really have to decide is you want to save on premiums and risk a company going belly up or not. You are pretty safe as long as there is not a huge catastrophe even. Another issue might be customer service in the event of a claim.
As for the coverage part you really need to read and understand your policy. Very few agents will go over the policy with you in detail. I have found that the software they use to Value your home for insurance purposes falls short especially if you have major upgrades to your home. A few things to look for would be: Guaranteed Replacement Cost - Increase Cost of Construction as well as Increased Cost of Compliance (some policies will allow 125-150% over policy limits in the event of t total loss) - Debris Removal Costs in excess of policy limits. What are the Limitations and Exclusions!
Most people don’t look at their policy until they have a claim. There are many factors to consider when paying for HO insurance. Most people will never have a major loss claim but if you do you want a good company insuring you and pray that you get a good adjuster.
Retired 36 years handling claims.