Home Insurance Update
Our home insurance premium has increased by nearly 50%, so we’re exploring other options. We’re located in the Midwest.
Does this rate seem justified? The total comes to $2,700.
Notably, they’ve removed coverage for wind and hail losses. I appreciate any insights!
Coverage Details:
– Dwelling Coverage (Primary Residence): $999,000
– Other Structures: Included
– Personal Property Coverage: $999,000
– Loss of Use Coverage: $99,900
– Personal Liability: $499,500 (per occurrence: Bodily Injury and Property Damage – $99,900)
– Personal Injury (Aggregate): $500,000
– Medical Payments: Not specified
Deductibles:
– Property Deductible: $5,000
– Windstorm or Hail Losses: $2,500 (1% of Dwelling Limit)
Additional Coverages:
– Homeowner Plus Endorsement: $9,990
– Enhanced Replacement Cost (50% Additional): Included
– Equipment Breakdown: Deductible $500
– Limited Water Backup, Sump Pump, and Hydrostatic Pressure Coverage: $50,000 (Deductible $2,500)
– Service Line Coverage Endorsement: $10,000
– Section I – Fungi, Wet/Dry Rot, or Bacteria: $10,000
– Limit of Insurance (Section I): $10,000 (Included)
– Section II – Fungi, Wet/Dry Rot, or Bacteria (Aggregate): $50,000
Thanks in advance for any feedback!
It sounds like you’re dealing with a significant increase in your home insurance premiums, which can be concerning. A 50% increase is quite drastic, so it’s definitely a good idea to shop around and compare quotes from different insurers.
Regarding the specific points you mentioned:
1. Total Cost: $2,700 for the coverage limits you listed seems reasonable, especially considering the higher value of your dwelling and the additional endorsements. However, premiums can vary widely based on location, home condition, insurance company, claims history, and more.
Removal of Wind/Hail Losses: This would generally lower your coverage and potentially your premium, but it’s not something to take lightly, especially if you live in an area prone to severe weather. If you’re in the Midwest, you might want to make sure you have adequate protection against wind and hail, as these can cause significant damage.
Coverage Limits and Endorsements: The amounts you have listed for personal liability, loss of use, and other structures appear quite adequate for most homeowners, but you should assess whether they meet your personal needs. The endorsements add valuable protection, but make sure they align with your risk profile and the specific risks of your area.
In summary, it is worth getting quotes from several companies to see if you can find a better rate while maintaining essential coverages. Also, consider asking the current insurer for an explanation of the rate increase; some factors might be negotiable. Good luck with your search!