Need some advice re: home insurance. Is this legal?

[Dover]

Last year some bad weather tore up my roof. So I had it replaced and my home insurance paid for about half of it after deductible. I've been with this company for over a decade. So now, suddenly, they have raised my rates and I feel certain it was due to having actually USED my coverage for the roof.
I know I can cancel my policy and go with another company, but isn't this
practice illegal? What if any recourse do I have? Thanks.

[Warpy]

1. A lot of companies do that sort of thing, deciding you're a poor risk

based on the dollar amount they paid out. Your only real recourse is to price the policy with other companies.

Insurance is a racket.

[Ineeda]

2. sorry, but this is all insurance co.'s SOP. Sucks, doesn't it? n/t

[Uben]

3. I sustained hail damage on my roof.......

.....but waited a couple of years to replace it because there were no leaks and I didn't want the hassle. But, my insurance had gone up too much, and I was gonna switch insurance companies to save money. I had replacement insurance with a 2% deductible.
I wound up getting a new "50 year roof" for what the insurance paid, plus an extra $1200. My new insurance company, State FArm", gave me the same coverage for half what I was paying, because I chose to re-roof with the 50 year shingles! I'm saving $1600/yr on premiums, so the extra costs of the 50 yr roof will more than pay for itself in one year. I was amazed!

[Dover]

4. I also upgraded to a 50 year roof AND it is also Energy Star rated.

And yet my insurace jumped $100 higher.

I believe I can claim the energy star product on this year's taxes for a rebate, but apparently the 50 year upgrade didn't have any affect on my insurance coverage.

[Uben]

12. Shop around

Like I said, my insurance premium was cut in half. I had no idea I was getting the shaft by my other carrier. I was with him for 23 yrs, but the only time he ever tried to save me money was when I called and threatened to switch. Well, I got wise, eventually, and started shopping.

I did not get the energy star rating, which is tax deductible, but do enjoy a large savings from the switch. My home was built in 1972, and added on to in 1987. It is currently about 4200 sq ft, of which, about 1200 ft is a garage, shop, and storage, and not climate controlled. I gave State Farm everything, my house, two cars, Harley, Ranger basss boat, and an additional investment property I own to insure. The overall savings was right at 50%.

You may already be getting a good deal, but you should still realize a savings for the 50 yr roof. Call around and see what other companies are offering as savings for installing the 50 yr roof. That will give you an idea of what to say to your insurance guy. You may be surprised. As in my old carrier, he did nothing unless I complained.

I was under the impression he would try to save me money, but he was in it for all he could get out of me, so I gave him a good cussin and told him I will bad mouth him to everyone I know for the rest of my life! he he.

[dixiegrrrrl]

14. What is a "50 year" roof?

And I am unclear from your post if YOU paid for all of it or you are saying your insurance paid for some of it?

[westerebus]

17. The material used is graded in years.

Shingles come in various weights and dimensions. The better the grade of the shingles, the longer the life expectancy. Building codes may require a minimum of 15 years, most 20 years. Depending on where you live and what the weather is like. A thirty year roof is common on the east coast.

[laureloak]

5. My HO coverage spiked and I didn't have a claim. BUT

I shopped around and saved almost half of what I was originally paying. Make sure the replacement value on your policy is not inflated else you're just wasting money.

[Paper Roses]

6. Insurance is a crap game. I say that from experience.

First, recently, during a storm, my neighbor had a tree from her yard fall onto her house and on that of 3 neighbors. The company paid for all the damages. Her damage was the roof and they replaced it. Damage to neighbors was minimal but still required.

I have the same company as she does. I am now concerned because of this. Her rates were raised $3000.00-yes, that is what I said.

I switched my company to the one she and others in the area have because of an incident with Liberty Mutual years ago. I had LM as insurers for 40 years. Never a claim.

A tree from neighbors on the other side came down on my house in a windstorm. My problem, not theirs says the neighborhood condo assn.. After a great deal of haggling with Liberty Mutual,I had to hire an independent adjuster to act on my behalf. LM wanted to settle by phone(from Texas, I'm in MA) for the cost of the tree removal only. Then it was "we'll pay for the part of the roof that was damaged. It was a horror show.

In the end, the adjuster was able to negotiate with LM so that I got more dollars for the repair. We still ended up on the short end and I bet anyone needing any kind of payout coverage faces the same kind of hassle.

[freebrew]

7. Years ago had similar experinces.

A 70mph wind storm tore up my roof, I had a friend who was a professional roofer fix it.
No claim to insurance.
A few years later, it was another storm and lightning caused several thousand dollars damage.

They refused to let my friend do the work and sent one of 'their' guys to do the repairs.
a few years later, after they had cancelled my policy(too many claims), I sold the place. The new owners forced me to reroof the thing because the work done by the insurance guy was sub-standard.

[Citizen Worker]

8. Many years ago a long time family friend who sold home, auto and life insurance asked the following

question: do you know the difference between the mafia and the insurance industry? Joe quickly answered his own question saying, "one is legal the other is not."

From own experience with insurance claims although the damage was not caused by a natural event but rather a break in. Upon discovering the break in my first reaction was to document the damage photographically. The damage was minor and I made the repairs myself in a few hours. The monetary loss was approx $2,500 and was confined to items that could easily be carried by one person. Access and egress required negotiating some 22 stairs up a hillside thus my conclusion that it was one person. Whoever it was simply ran out of energy and left several items behind that he/she had gathered up and made ready. I filed a claim with the insurance company and the initial contact was cordial and business like. That wasn't to last long.

After providing a list of the stolen items, and believe me I didn't embelish the list trying to make up for the deductible or inflate the claim in any way, the adjustor began interrogating me intimating that I had inflated the loss. The first question from her was, "how do we know you actually owned what you are reporting stolen?" And, "can you prove that you did own what you are reporting?" Among the stolen items was a vacuum cleaner, portable stereo, a "boom box," several music CD's, a toaster oven, pair of binoculars, some hand tools, etc. I asked the adjustor what she would accept as proof of ownership and she said, "receipt of purchase, original packaging or instruction book for the item(s) listed. In turn I asked her if she retained sales receipts, original packaging and all instruction books for items that were gifts or purchased several years ago. As I recall she did not reply. I then suggested to her that it would require a large storage facility and extensive filing system and that since she must have one I asked that she make room for me to store like material.

Thinking that I must have photos showing some of the items that were stolen I asked about photos as proof of ownership and she replied, "yes, but you must appear in the photos because we wouldn't know if you weren't using someone else's." In the end I settled for $1,500.00. The boom box and portable stereo alone were worth nearly $1,200.00. And I had original replacement cost insurance. So much for that.

I'm reminded of a rhetorical question posed by Ralph Nader several years ago. "How does an insurance company make money. They charge high premiums and deny claims." Personal experience would agree with that.

[Paper Roses]

9. Do you mean I have to hire someone to come and photograph me beside

my stuff? I don't have much of value but do have photo's in the safety deposit box. I wonder if this is no good. What the heck are we supposed to do, have an agent come and document whatever we have in the house. Theft or fire, the stuff is gone, how do we prove it was here if the photo's are no good?

What a farce! Insurance, between my car and house are the biggest expense I have. I feel I am throwing 1/4 of my SS check to them in the hope, I guess, that in the future, they will be there for me.

[Crazy Dave]

11. Same with health insurance

The doctor told my wife she needs back surgery, her health insurance company says no she doesn't and is denying the surgery.

[jtuck004]

10. You can call your state insurance commissioner if you think there

is something illicit, or if you think they are not acting in good faith. All insurance companies are regulated in the state they sell insurance in, in some fashion.

That said, they are in business to make money. It is likely that they didn't just raise your rates. More likely that after that storm they re-evaluated the costs for a lot of people's damage, and raised rates based on new home values, new weather predictions, etc. Whether it is good or bad, fair or unfair, is a whole 'nother question.

The results of your call to the insurance commissioner are very likely to net you nothing, but the only way to find out is to call and see if they can help you.

All that said, you should check around and see what premiums would be, and don't forget to tell them you had a claim and why.(It's a matter of record now anyway). But don't forget that at least your insurance co was there, and paid, when you had damage. It doesn't sound like you had a big runaround, had to deal with a bill not being paid, etc. I don't get a commission, but think about whether your agent gave you good service. Because there are places with lower prices and less service, though it is hard to tell who is what in any specific area. I have had good luck with State Farm, but your mileage may vary.

[Dover]

13. Thanks for the info and suggestions. That is exactly what they told me...

that it was just coincidence that their rates were raised (across the board) the same year I made my claim. She said they hadn't raised them in several years and were overdue. I don't know how I could confirm that it wasn't just my rates that went up, but it is true that they've remained the same for at least 5 years. On the other hand they have opted out of several areas of coverage along the way that were originally covered. So six of one, half dozen of another.

It is also true that the claim was hassle free and friendly. But I'll take yours and others' advice and shop around.

[dixiegrrrrl]

15. For what it is worth

I just went thru process of re-evaluating our home insurance, after yet another increase in premiums ( 100.00 per year increase every year, times 5 years).
Never have filed a claim.
We have insurance with local outfit ( ALFA) because we have pattern of hurricanes, storms, and I wanted a local
person who could come out and look at damage ASAP, instead of some guy from another state or a contractor eventually making it to our door.
During the insurance re-negotiation, I paid attention this time.
I was able to reduce the premium by lowering some of the coverage ( who the hell needs 100,000 of
"personal effects" coverage).
I also learned the difference between "replacement" coverage and "fire and theft" coverage.
I opted for "replacement" coverage...roofs are expensive. And mortgage lender requires that.

My neighbor has "fire and theft" coverage, her fridge caught fire, she was bummed when the same insurance company only paid for 25% value of her 15 year old fridge.

Premiums DO go up ever year.
The trick is to see if your premium went up at same rate as others in your area/class.

[Dover]

16. Thanks for the info. Sounds like a very good idea to do a re-evaluation.

I've been doing something like that, but have not had the time to sit down and read the policy thoroughly and get my agent to distinguish the various options. However, as I mentioned above, they really haven't raised their rates in several years. They have, instead, been whittling down what they will cover. Maybe your location is more prone to weather related claims than mine, hence the annual rise of your premiums. If disasters continue to increase in size and scope (like along the Gulf) I don't think insurance companies are going to be in business much longer because they, like the fed's FDIC, are not prepared to pay out more than a limited amount.