Insurance Co. Hiking Rates?
Has anyone else noticed Fireman’s Fund (or any other insurance companies) hiking rates an exhorbitant amount? We just got our policy renewal documents and they’re hiking the rates by approximately 50% (ie: 150% of my current rate). We have had no claims since taking out the policy 3 years ago. Has anyone had similar experiences…
Has anyone else noticed Fireman’s Fund (or any other insurance companies) hiking rates an exhorbitant amount? We just got our policy renewal documents and they’re hiking the rates by approximately 50% (ie: 150% of my current rate). We have had no claims since taking out the policy 3 years ago. Has anyone had similar experiences with FF or any other insurance companies?
I have had good experience with NY Brick & Brownstone Program (Doug Legters 212-297-3110). Good coverage, good price & good claims sevice. They only sell in Bklyn,Man. & Queens.
There are several reasons that insurance companies raise rates. You may want to shop the policy to see rates from other companies with comparable coverage. I am an independent broker. Feel free to call my office:
Narrows Insurance Agency, Inc
9201 4th Ave, 7th Floor
Brooklyn, NY 11209
(718) 745-1500.
Thanks,
Will
I have Everest, no claims though-although I know some of the adjusters and they are fair and good people.
FF and Chubb are considered the premium or cadillac insurer’s. You will definately get A+++ service and quick settlements, but you do pay a bit extra for that.
OP here.
NewSouthSloper is exactly correct. It’s the same coverage and same company. I called my insurance agent and they told me FF is using the same valuation WITHOUT adjusting for inflation, so a 50% hike is excessive. This has nothing to do with market values, and if anything, replacement cost would likely be lower since the construction market has cooled off as well.
I’ve gotten a quote from a competing agency (Brownstone Agency) for less than half the premium of FF.
Does anyone know anything about Everest? Do they balk at payment? Has anyone with Everest coverage had good or bad experiences with them? I mean specifically people who have had to file a claim, since that’s when customer service really matters…
Yes, not only are insurance companies raising rates to make up for loses elsewhere, I’m sure, they are also pulling out of areas entirely.
A brownstone property I own in an undisclosed area of central Brooklyn, was somehow deemed to be in a hurricane flood zone by Allstate. At least that was their claim two years ago when they sent me a letter telling me they would no longer be covering me (I had not a single claim, but many years of paying their price).
Mind you, I was unaware of this structure or this area flooding in the entire 100 plus year history of the building.
Look around, I’m sure you will find another insurer. It gets harder if the property is a commercial/multi-family rental. If you don’t have the time, hand it off to a broker, but have them give you several quotes.
Eight comments and no answers to the OP question.
I share hannible’s sentiment. Many of you refused to listen to the warnings and went ahead and bought. Resale prices falling but costs rising. The market is collapsing to intrinsic value, somewhere way down there.
***Bid half off peak comps***
Posted by: Brownstones Half Off at January 13, 2010 10:54 AM
And yours makes nine.
At least i gave her another source.
Eight comments and no answers to the OP question.
I share hannible’s sentiment. Many of you refused to listen to the warnings and went ahead and bought. Resale prices falling but costs rising. The market is collapsing to intrinsic value, somewhere way down there.
***Bid half off peak comps***
There’s a couple of things that insurance companies have to take into account beyond this.
Claim rates: If 1 in 100 houses need to be replaced every year and it costs $1,000 to replace a house then the insurance company needs to charge at least $10 a year to make a profit. If claims go up then they need to adjust their tables accordingly. Are you living in a higher risk area? Or has there been a spate of fires in the area?
Reinvestment rates: Insurance companies take the premiums and invest them in the markets to get a better return. In light of the overall weaker markets, they are unwilling to rely upon this incremental income and would rather increase the premiums to the customer.
Renewal rates: Once you’ve been a customer for a few years, insurers feel they can raise the rates and you won’t switch. Clearly they’ve gone too far in your case and you should probably vote with your feet. At the very least, you should call them and threaten to leave if they don’t improve the rate.
OP…call Sylvia at the Fulton Street office of State Farm…tell her I recommended you.