Home Owners Insurance advice

[Greenheadless]

Didn’t want to hijack the other thread.

Received my renewal review for this year. Current policy with current company is going up +60%.

Also, commented the following when looking for alternatives: “ Foremost/Farmers, Progressive, State Auto, Travelers, Bankers, UPC, and Safeco are not writing new business in our area.” (Harris County Texas)

Lastly, came up with an option that actually would be cheaper, commented it was part of a ‘reciprocal exchange’. Never heard of such.

Thoughts, advice, comments?

Thanks in advance.

[RascalArms]

Reach out to Cale Staton here on TBH. Use to be BeetleGuy but I believe he is The Insurance Guy now.

cale.staton@rolloinsurance.com

[CoolHandLuke]

Values are up, replacement costs are up, crime is up in HC as well. We are seeing alot of carriers pulling out of HC for those reasons and when things calm down they will be agressive on writing in the area again... get with an independent agent in the area and let him/her shop the markets that are still writing in HC. We write home and auto in HC and all surrounding counties every day.

[Greenheadless]

Thanks guys, I already have an independent guy.

I was just checking here for a second opinion and hopefully some feed back on the ‘reciprocal exchange’.

[flywise]

60% from what?
Like mentioned already. Values have gone up and replacement cost are through the roof. No matter what it cost it’s a better value than property taxes. Hopefully you will find a policy that suits you

[bbqfan5909]

Everything is going through the roof. Electrical rates, fuel, etc...those that have not felt inflation yet, you will soon.

[Pineywoods]

You really ought to get a quote from Texas Farm Bureau.

[kmitchl]

Avoid Hippo/Spinnaker.

[CoolHandLuke]

Reciprocal inter-insurance exchanges are unincorporated associations, meaning that they do not go through the legal process to become companies and are not legally separated from their owners. This makes sense since subscribers are both the customers and owners of the exchange. This also means that legally speaking, reciprocals are not considered reciprocal insurance companies—they are simply exchanges of insurance contracts between members.

Similarly to mutual insurance policyholders, subscribers will choose the organization’s board of governors, which acts as an advisory committee. Since subscribers both own and are served by the reciprocal insurance exchange, reciprocals need a third party to sign contracts and act as an underwriter. The board of governors is then in charge of choosing an attorney-in-fact (AIF), an individual or corporation paid to handle these day-to-day operations of the exchange. This means that the AIF is in charge of issuing policies, handling claims, and managing the underwriting (price-setting) process. Attorneys-in-fact have power of attorney through the inter-insurance exchange. And AIFs may either be owned by the reciprocal insurer, known as proprietary reciprocals or contracted through a third party, known as non-proprietary reciprocals.

Reciprocal insurance exchanges most often issue what are known as nonassessable policies. These insurance policies ensure that if the reciprocal’s operating costs end up being higher than expected, subscribers will not be charged more to offset these costs. (While some reciprocals will issue assessable policies, they are far less common.)

A subscriber’s insurance policy through a reciprocal insurance exchange determines more than just the amount of insurance coverage they have. The cost of a subscriber’s insurance premium—known by reciprocals as a premium deposit—will affect the subscriber’s amount of coverage, how much they receive in annual dividends (if distributed), and even how much they are subject to lose when another subscriber files an insurance claim.

Another major difference between mutual insurance companies and reciprocals is who—or what entity—takes on risks. In mutual companies, the insurance company takes on any risks or losses caused by policyholders’ insurance claims. But since reciprocal insurance exchanges are meant to divide risk management and indemnity among subscribers in case of potential losses, each subscriber protects the others, meaning that the risk is on the subscribers. This also means that when one subscriber takes a hit and has to file an insurance claim, the other subscribers pay for this loss through the cost of their premium deposit.

[Greenheadless]

Great explanation, thanks a bunch for taking the time to write that.

Much appreciated.

[Johnny Dangerr]

Reach out to Cale Staton here on TBH. Use to be BeetleGuy but I believe he is The Insurance Guy now.

cale.staton@rolloinsurance.com

Just emailed him...

[gingib]

Mine has never gone up much if any....WHY???!!!

Because I shop it every 1-2 years and there is always someone who will come in substantially lower on home or auto. I also do not bundle, its cheaper

Pay in full for auto for 12 months at a time

My brothers college baseball teammate owns his own company and shops alot of different suppliers

[Tmag]

My home coverage went up 26% this year due to home value increase/replacement cost.
Just sat down and went over my auto policy with my agent and we will change to a different carrier. Current carrier was going up 30% and new carrier went down $4 for the same coverage.

[RiverRat1]

Mine has never gone up much if any....WHY???!!!

Because I shop it every 1-2 years and there is always someone who will come in substantially lower on home or auto. I also do not bundle, its cheaper

Pay in full for auto for 12 months at a time

My brothers college baseball teammate owns his own company and shops alot of different suppliers

Not bundling seems more costly when I look.

I use Cale also. Even if I found a little cheaper I wouldn't change. Why? Because peace of mind having an insurance guy that can answer a zillion questions and make sure your arse is really covered. Last thing I want is to pay in for 30 years and then be told...Oh you needed this other type insurance or some other BS excuse.

But Cale was far cheaper for us anyway.

[rolylane6]

Avoid Hippo/Spinnaker.

I would avoid them on name alone! [emoji1787]

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