Homeowner's Fire Insurance

[Hobo Hilton]

Now is a bad time to try and rebuild:
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According to Amy Bach, executive director of United Policyholders, insurers are attempting to limit their potential losses in some disaster-prone areas. "We know of many cases where consumers request higher limits and are denied," she said.

Colorado Fire Victims Face High Building Costs Exceeding Insurance Coverage - ProgramBusiness | Where insurance industry clicks

According to construction, insurance, and government officials, rising construction costs will push the cost of rebuilding after Colorado’s most destructive wildfire beyond the insurance coverage of some homeowners. The Marshall Fire, which swept through the suburbs between Denver and Boulder...

www.programbusiness.com

 

[Maggot]

Good post.

I have whats called, "Replacement cost" which is supposed to cover the entire cost of repair/rebuild. Per the article, many companies arent offering that anymore.

My heart is broken for the guy who cant rebuild his 2 million dollar home because he's only getting 1.5 million. Gee, maybe you could downsize a bit.

 

[TXAZ]

+1 Replacement Cost = low hassle.
And the cost differential is small.

 

[Maggot]

^^^^And for a few buck extra, mine is $18 per month, you can get an umbrella policy that combines auto and homeowners and add about a million total incase of a lawsuit or something.

 

[striped1]

+1 Replacement Cost = low hassle.
And the cost differential is small.

You need to look to see that you have "guaranteed replacement cost", still subject to a limit or a percentage of your undrelying limit, but it is meant for those cost overruns. Replacement cost is a definition of valuation within your policy and it only means that you will recover any depreciation assessed on the loss if you choose to rebuild or repair. The other option is ACV or Actual Cash Value. Which means you do not recover the assessed depreciation upon repair or rebuild. It doesn't mean that they will rebuild your house no matter what the cost. It is still subject to your limit.

 

[NoDopes]

Im curious how many people don't have home insurance or with increasing rates, how many more will join that party. Mine has gone up a lot in the last couple years

 

[_Windrider_]

Good post.

I have whats called, "Replacement cost" which is supposed to cover the entire cost of repair/rebuild. Per the article, many companies arent offering that anymore.

My heart is broken for the guy who cant rebuild his 2 million dollar home because he's only getting 1.5 million. Gee, maybe you could downsize a bit.

Value doesn’t have 100% correlation to size. Why should they be punished because a home they built 25 years ago has appreciated so much and through no fault of their own costs triple to build today what it did in the 90’s? If you are required to have insurance it should be required that it replaces what is insured. Otherwise it’s not insurance. Insurance has become a scam in this country and it’s time it stopped. It’s also time we stopped building in areas that are prone to fire flooding and hurricanes. Just because you can doesn’t mean you should.

 

[hankpac]

Simply put, Insurance companies are not in the business of paying off on claims, they are in the business of DENYING claims.
They do whatever it takes to mitigate risks (Paying off on the bet), by laying odds (increasing premiums) enlarging the pool, and citing all sorts of escape clauses (hand of God, etc) or laying blame on someone else. It's the biggest casino on earth, and the house always wins.

 

[striped1]

Value doesn’t have 100% correlation to size. Why should they be punished because a home they built 25 years ago has appreciated so much and through no fault of their own costs triple to build today what it did in the 90’s? If you are required to have insurance it should be required that it replaces what is insured. Otherwise it’s not insurance. Insurance has become a scam in this country and it’s time it stopped. It’s also time we stopped building in areas that are prone to fire flooding and hurricanes. Just because you can doesn’t mean you should.

even if your agent does nothing for 25 years, the insurance company generally adds a small year to year percentage increase to your limit. There is almost no way unless you actually specified it that your limit today would be the same as your limit 25 years ago. Ultimately, you are the buyer. It is up to you to know what you are buying. Most people don't.
I don't have two fucks to give to anyone who has made a conscious decision to forgoe insurance. THe government should never bail them out. They made a terrible decision to self insure.

 

[striped1]

Simply put, Insurance companies are not in the business of paying off on claims, they are in the business of DENYING claims.
They do whatever it takes to mitigate risks (Paying off on the bet), by laying odds (increasing premiums) enlarging the pool, and citing all sorts of escape clauses (hand of God, etc) or laying blame on someone else. It's the biggest casino on earth, and the house always wins.

Funny, I pay tens to hundreds of millions a year to policy holders. Some insuranace companies are that way. It is up to you to find the ones that aren't. DO research. You are paying for coverage and claims service. It is afterall a contract. Have you ever actually read your particular contract?

 

[Maggot]

Funny, I pay tens to hundreds of millions a year to policy holders. Some insuranace companies are that way. It is up to you to find the ones that aren't. DO research. You are paying for coverage and claims service. It is afterall a contract. Have you ever actually read your particular contract?

There are many reputable companies. Beacon is one. My home was burglarized years ago and they paid me for things I couldnt prove I had. They actually did research on a rare PRS guitar, and paid me more than I told them it was worth and 3X what I paid for it.

 

[Holliday]

Well if I remember correctly the Governor declared it a disaster zone. So this will mean federal funds.

I knew a guy in Boulder who during the floods a few years back had his basement flooded. He could have easily gone out of pocket but the feds paid......

Remember, free money for the well-off is FEMA, a Grant, PPP loan forgiveness.

For the poor it’s charity, assistance, welfare.......

Fuck the poors.

 

[Arc Light]

Insurance is a necessary evil, but also a legalized scam. You can pay your premiums religiously for 20 years with zero claims. But then you file a claim and are dropped at your renewal. Or they double or triple your rates. You give them tens of thousands of dollars in pure profit, with no downside for the insurance company. Practices like this should be outlawed, imho.