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Old 05-11-2018, 01:59 PM   #61
wdc330i
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Originally Posted by rumatt View Post
Good lord, that isn't covered either? Kill me now.
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Old 05-11-2018, 03:03 PM   #62
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Has anyone ever considered earthquake and flood insurance, for those not in a risk zone?

I imagine the chance of my house being destroyed by an earthquake is zero... but WTF would I do if it were to happen? Pay the mortgage for the next 25 years on a house that doesn't exist?

Isn't this what insurance is supposed to be for? To protect me from rare, crippling events?
I considered it when we lived in Monroe Wa. We were about 10 miles inland, but very close to sea level. Living in between Mt Baker and Mt Raineir there was always the remote possibility of earthquakes/volcanoes? / tsunami's. Heck, as the crow fly's, we were fairly close to the Oso mudslide. (not as close as Kevin, but shit does happen on "the ring of fire")

I don't remember the exact figure, but State Farm's quote was ridiculously high for disaster coverage.
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Old 05-11-2018, 03:04 PM   #63
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Due to my father serving in the Korean War, I used to have USAA for a while.

I found it hilarious that they covered me, but dropped him due to his claims.
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Old 05-11-2018, 03:41 PM   #64
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Originally Posted by kognito View Post
Due to my father serving in the Korean War, I used to have USAA for a while.

I found it hilarious that they covered me, but dropped him due to his claims.
Wow. He must have made a lot of claims...
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Old 05-11-2018, 06:15 PM   #65
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This is definitely a well educated group on this board .... I do this for a living and the responses here are right on ...

Matt ... one other report that gets ran by the Carriers in NY is a clue report which gives them all of your past claim history, who lives in the household, etc.

I’m not a fan of Geico at all but then again I am an independent agent and geico is a direct market.


I have some different beliefs such as having a Carrier long term will have its advantages especially once you have a claim or two ... as a broker we can get on the phone with a Carrier and get them to reconsider non renewals and rate increases in some cases depending the type of policy
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Old 05-11-2018, 10:21 PM   #66
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Insurance

Also in the business (opposite side of the house as AF) and have lots of opinions here but will keep it to a few...

1) Water backup from sewers and drains is not covered on a standard home policy and you should consider adding it (the flood exclusion also excludes this unless you add it back). Most will offer it for a small fee.

2) Earthquake, flood, and sinkhole are generally excluded but can be added back in most areas. Up to you if it’s worth it in a lower risk area, might be worth asking for a quote if you want piece of mind.

3) Insurance is a “cost-plus” model and heavily regulated. While people think carriers make a killing by overcharging them, the average profit margin is pennies on the dollar (an unnamed “best in class” carrier that you’d all be familiar with regular cites to their investors that they target $0.04 profit per $1 of premium.). However insurance companies also generate additional profit from investments due to the lag between when you pay your premium and when they pay out claims on average across their book. (Ex. why Buffet loves insurance companies)

4) So why do I get such a huge range of prices? Lots of reasons. Carriers are trying to predict the future based on past data. They bucket customers into similar classes based on risk profiles (state, city, age, gender, claim history, driving record, credit profile..) Every carrier has different models for how they split up customer segments so you get grouped into different buckets. For this reason it pays to shop around. Some carriers are more likely to offer lower prices due to lower cost structure but it’s no guarantee they’ll be cheaper for you because another carrier might bucket you into a more preferred tier. Only way to know where you can get the best price is to shop around. And carriers also update models every few years, so the cheapest today might not be cheapest tomorrow.

5) Why is car insurance so expensive? Why are my rates going up if I have never had a claim? Auto insurance has had a tough run over the past 5 years. A huge spike in miles driven due to cheap gas and rising employment, increase in distracted driving, more expensive vehicle repairs (all those sensors), plus record number of motor vehicle fatalities. It’s a pool so when costs go up everyone pays more. But trust me that drivers with bad records (accidents or violations) are feeling it even more than “clean drivers”. Also keep in mind today’s “clean” drivers could still have an accident tomorrow so they still have to charge them more to account for rising cost of auto claims.
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Old 05-12-2018, 02:06 AM   #67
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Originally Posted by rumatt View Post
Is that for 6 or 12 months?
Full year.
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Old 05-12-2018, 08:31 AM   #68
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Wow. He must have made a lot of claims...
Yeah, and he has an incredible talent of picking the wrong people to let drive his car(s)
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