I have a confession to make...
I complained mightily when my Homeowners Insurance rates went up last month. Ilea listened to my complaints and promised to “re-shop” my Homeowners Insurance. (Re-shopping basically means she looks at all the different insurance companies to see if someone else has a lower premium for me.)
The bad news…. anywhere else I could get insurance was even higher priced.
The good news… it’s a really good price compared to the others.
The question is – why is my price going up?
There are several factors for that:
So why are there a limited number of insurance companies willing to cover my house?
My insurance price is higher because more damage is likely to happen to my house in a fire than if it were sitting in the middle of Spokane. Our fire rating is significantly lower than Spokane’s. Since I am unwilling to move, I must deal with it.
Apparently they can cause claims by hurting someone outside of my family or by damaging other people’s property. I know it seems logical, but there are people out there that don’t realize that a 300lb horse stepping on your foot can do some real damage. And since she can’t see your foot, you’d better watch out for hers. (And that’s a miniature weight. Regular sized horses weigh 1500lbs and up!)
As for the property damage…. (Sparkler, quit leaning on the fence! You’re going to break it again!)…. well, they may have a point.
Some companies don’t want certain types of dogs. Typical restrictions are for wolf hybrids, Pitbulls, Rottweilers, Doberman etc.
I have Chihuahuas so, no problem there. Yes, Chihuahuas can be aggressive, but generally can’t do much damage.
Some companies don’t want more than 2 or 3 dogs in a household. Seems silly to me but that’s what they say.
I have 4.
And some companies won’t make exceptions.
I was lucky: the company I’m with made an exception to their 3-dog rule because they are so small.
It is important that the insurance company makes sure it has enough money in its coffers to cover a major event. Such as a wildfire, like the many we’ve seen lately that take out whole neighborhoods. They need to be able to cover rebuilding all those houses.
Each insurance company must get permission from the State Insurance Commissioner to raise rates…. or to lower them. In fact, the Insurance Commissioner has been known to require an insurance company to raise its prices because they did not have enough money saved to cover the losses that may happen.
All of these factors are included when insurance companies figure out prices for a particular area. So I complain, even though I know they have reasons.
I will continue to complain when my prices go up and ask my insurance agent to look for a better price. And I will remember that there are good reasons for the prices and not yell at her when she tells me: “No, we don’t have a better price.”
Posted by Lara Wilson, Mount Spokane Insurance - MountSpokaneIns.com
Mount Spokane Insurance
We are an independent insurance agency handling over 80 different insurance companies. Lara Wilson does most of our blog posts. Any guest posts will have the guest blogger's name at the end of the post.