Any Catheite Insurance Experts?

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sparrow

Cathlete
Hey Chicas,

Quick question for anyone who knows how insurance works. DH and I are hunting down homeowner's for our new property - well it's almost ours. June 9! :D We have three quotes, two from Rhode Island agencies and one from CT, in the area of the new house. The two in RI are quite high, basically because the agencies say there are two structures on the property, the main house and the rental cottage. The third guy's quote was substanitally less - his agency insures it as one property, he said, because as long as we live in the main house, it's "owner-occupied" and a lower rate. Is it typical for three companies to have such differing views of a property and the amount at which it should be insured?! I'm totally freaked out. So far we've had difficulties with the sellers and our agent(s), and I don't trust anyone at this point!

TIA for any insight.

Sparrow


Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in sideways, thoroughly used up, totally worn out, and loudly proclaiming ‘Wow - what a ride!’ — Peter Sage
 
Hi Sparrow.

I am not an insurance expert but what I would suggest is talking to your attorney and asking him/her if what the cheaper rate company is telling you is allowed. Everyone's first reaction would be to go with the company with the cheaper rate for the same $$$ of insurance but I would want to verify that it is allowable to insure both structures together because the other two companies won't do it that way.

We had a tornado blow through our property several years ago and it was so frustrating dealing with our insurance because with a disaster like that they pretty much pick and choose what they will cover and what they won't. Besides damages to the house we had two barns totally destroyed and it was a nightmare. Now when we make any changes to our insurance coverage I have it all-spelled-out in writing so we are all on the same page...and I have it in writing should the insurance decide to renege on the coverage at their convienence.

That is what s*cks about insurance. Every company operates on their own set of rules and then every state has it's own set of rules. It is extremely frustrating.
 
Sparrow, you really want to look at who the ultimate insurer is rather than who is the agency - the agency is basically a middleman between the insured and the insurance company. And yes, insurance companies do actually use different rating plans and modify your premium based on a variety of factors, some of which are related to you as an insured, your property and its potential exposures (flood, mold, crime, etc.), and others related to things like where you are geographically, what kind of additional exposures the company may have in that area (based on how many insureds are covered in the area, recent losses, etc.), the location (are you on the coast?), etc. So what you want to ask is, who is the insurer, what exactly am I covered for (in $$ terms - what is my replacement coverage for the exterior and property, what is my replacement coverage for interior, what are the limitations on my policy - i.e., is flood insurance included? specifically what's covered, etc.) You might ask who else the agency writes with and why are they recommending this insurer vs. another one? What are the real differentials in the policies?

Unfortunately the average American consumer is utterly uninformed about insurance and how it works and that does not work in your favor should you suffer a loss. And cheaper is NOT always better, but more expensive is not always better, either. You want an insurer with solid financial standings and most importantly a good reputation for paying claims. I work for a P&C company and I've heard stories that would stand your hair on end. I'd personally pay more premium for the peace of mind, but that's just me.

Good luck - PM me if you want more info.

Marie
 
Thanks ladies!

Marie, the company is local but the agent said, we are with Nationwide, so I guess that is what you mean by looking at the ultimate insurer? The only thing that really concerns me is that the other two saw the property as a two structure, while this guy didn't. And, the others asked about woodstoves but when I told the cheap guy we have 3 woodstoves he said, "oh don't worry, that doesn't change anything." Weird. I may PM you at some point, thanks!

Sparrow

Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in sideways, thoroughly used up, totally worn out, and loudly proclaiming ‘Wow - what a ride!’ — Peter Sage
 
I work for an insurance company. Every company does things a little differently. I have seen it done both ways.

Ask these questions if I were you.

If you write it as one policy - is the cottage covered at ACV (actual cash value ) or replacement cost like the home? Some policies will only give you acv for the cottage or would you be better off having TWO policies - one for the home and one to cover the structure?

What is the name of the coverage that extends to the structure?

Does the policy include back up of sewer and drain coverage?

What about coverage for flood or earthquakes - flood is federal insurance and earthquake is an endorsement?

What does the policy exclude?

Are there separate deductibles on the policy?

How much liability is included in the policy?

Having a wood stove is an added exposure and in my experience a good agent would take pics of that and note it on the policy so you don't run into problems at a time of loss.

Also, rule of thumb is that if its a maintanence problem - its probably not covered (mold/rodents/tree roots/ect)

People are always suprised at what your policy does NOT cover, but I was also suprised at what it does cover too.........Good luck!!!

Financial Backing in a company is HUGE deal - you want the company to be able to pay your claim at a time of loss! HUGE DEAL!!!
 
Sparrow, yes, Nationwide is the insurer. And I would definitely be leary of ANY agent who tells you not to worry about something! Their job is to point out all of the things that can go wrong and explain to you why you need to be insured against that!

Anyway, will you be renting out the second structure? That is really the more important question and likely the reason the first two agents want to treat it like two properties. (Well, technically it is... say you had a total loss on your property where both structures were destroyed. You'd want to be sure you're insured for both values.)

Good luck, I do hope things settle down for you. BTW, I work in Hartford a couple of times a month and it is just BEAUTIFUL there! I'm sure you're going to love it.

Marie
 
Thanks for all the tips! We decided not to go with el cheapo agency, simply because DH called back to ask some questions and the guy acted as if I hadn't told him the cottage was a rental unit and that there were already people living there. He also said I never mentioned any woodstoves! So, a little too scattered for us. We're going with my aunt. :D

Sparrow

'Life is not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in sideways, thoroughly used up, totally worn out, and loudly proclaiming ‘Wow - what a ride!’ — Peter Sage
 
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