Townhouse Insurance: Bending Over for the Soap
Since we purchased our brownstone three years ago, our insurance provider, Chubb, has roughly doubled the annual premium from about $6,000 to a whopping $12,000 on the renewal forms we recently received. Some of this may be attributed to the fact that we actually filed a claim for about $15,000 back in 2006 when we…
Since we purchased our brownstone three years ago, our insurance provider, Chubb, has roughly doubled the annual premium from about $6,000 to a whopping $12,000 on the renewal forms we recently received. Some of this may be attributed to the fact that we actually filed a claim for about $15,000 back in 2006 when we had some flooding that resulted from a collapsed waste line. Mostly, though, it’s because they insist that the replacement value of our house is about $2.8 million, a good 50 percent more than its market value. (In contrast, a friend who own a brownstone in Brooklyn Heights that must be worth north of $5 million just got a bill for $14,000 from Chubb.) In Chubb’s defense, they were an absolute pleasure to deal with when the shit hit the fan (quite literally, in our case). That said, this is some serious dough. We recently checked in with the Brownstone Agency and got a quote that was a little over $4,000 a year for the next three years. We were able to choose how much we wanted to insure the house for, so the quote is based on $2 million. It would be interesting to hear what people’s experiences have been when they’ve had to place claims with both companies. Also, any other carriers we should check out?
when allstate dropped us we called around- state farm and liberty mutual had the best rates- around 1200 a year for a 1 million replacement value.
OK, so what’s with the rape joke? Why is being on the receiving end of anal intercourse considered the ultimate degradation?
We’ve used Irv Lepelstat (Union and 7th in PS) as our broker and every time we have to renew I ask him a million questions, think I have a handle on the situation, re-up with Brownstoner, then go off and fret that I’ve done the wrong thing (aka opted for the more affordable premium).
Here’s my understanding: worse case scenario, the house burns to the ground. Solution? File a claim to the maximum insured value — in our case, as it is for many brownstone-owning friends, that’s less than either market value or replacement value — and then use those proceeds to build a new townhouse. It would be without any of the old detail but offer the modern style and conveniences that attract certain buyers. This of course only works if the new house can be built within the budget of the claim — say $900k.
I’ve also heard that the biggest battle in making a satisfactory claim after a major/total loss is around the role of the adjuster. Some people say you need to hire a public adjuster to work on YOUR behalf because the insurance co’s adjuster will only look for ways to reduce your claim. Anyone have any wisdom on this to offer?
2 points:
1) Check out Fireman’s Fund. Their premiums were a bit better than Chubb and they have a good reputation when it comes to filing claims, almost on-par with Chubb. DO NOT go with State Farm. We previously had a claim cross over to our insurace from a neighbor’s claim which was found by both companies’ adjusters NOT to be our fault (State Farm did not pay a dime) and then they proceeded to drop our policy. I’ve heard bad things about Brownstone Agency…
Dude, look it up in the forum.
2) 11:17 – To defend Mr. B from the PC police: It’s a rape reference, not a homosexuality reference. Prision rapes (actually all rapes) are about power and not about sexuality. The “pick up the soap” reference is about doing something vouluntarily which you know is going to result in a violation of some sort or another.
I work with old buildings, and it’s known in my field that Chubb is *the* insurance company for the type of building that you own. They really understand the specific needs of historic construction.
I used to work for Brownstone Agency. I will preface my comments by stating that I left voluntarily after a number of years with promotions, increased responsibility, etc., so I’m not a disgruntled former employee looking to trash the firm. But I would never, never insure my home with them. What you save in premiums, you will pay back in spades should you be unfortunate enough to have a claim. There’s a reason a number of us used to call the claims manager Dr. No.
FWIW, This Old House Journal recommends Chubb, Fireman’s Fund and AIG as the three carriers who are best for historic homes. We got Chubb to come down on their renewal premium when our broker contacted FF and got a competitive bid. It’s still not cheap but I have insurance to cover me in case of a loss. I know, through personal experience, that Chubb will come through.
If you continue making claims that are escalated and think your going to cheat the insurance companies you have a lot to learn. They will raise your rates and you will pay a lot more in the long run. Your claims are public record and all insurance companies have access. It might sound crazy but if you have a legimate claim and it doesn,t amount to more than a few K. Don’t make the claim and save your insurance when you need it.
If you continue making claims that are escalated and think your going to cheat the insurance companies you have a lot to learn. They will raise your rates and you will pay a lot more in the long run. Your claims are public record and all insurance companies have access. It might sound crazy but if you have a legimate claim and it doesn,t amount to more than a few K. Don’t make the claim and save your insurance when you really need it.
We have Brownstone Agency coverage and went through a renovation where we were not living in the house. Brownstone was only willing to sell us construction coverage riders for very short periods — 3 months or so as I recall. We ended up having to get 2 of them, and our broker indicated it would be hard to get them to agree to a third one. The price for the coverage was not excessive, but it left me with the impression that it’s hard to get carriers to insure you for a long-term renovation project.