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We got here a year ago just as the hurricane was heading for the islands. We took our insurance agent's "advice" and got hurricane insurance. ("gee, a lot of folks are sure glad they have it. State Farm's cutting it off in the next day or two.") Just got this year's bill and it's 20% higher than last year. It also accounts for 2/3 of our whole homeowners insurance bill. So of course we're considering dropping the hurricane portion. I assume it's like getting earthquake insurance in Calif. i.e., Most people don't have it. What say the Punatalkers? It sure is freakin' expensive.
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We were thinking about it too.But I think the bank wouldn't allow it if you have a mortgage.
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Not necessarily, if it was not required to begin with than you don't have to have it. I never had it but the new quote I got from another insurance broker included it in the quote for the same price that I used to pay to HIPA, so I have it now. If you want the contact info e-mail me.
Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
888.819.9669
johnrabi@johnrabi.com
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Typically Tropical Properties
"The Next Level of Service!"
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http://KonaBoardOfRealtors.info)
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I wondered when this topic was going to get posted. I think insurance companies are hitting consumers up for the lucre that they stand to lose via medical insurance.
When my home insurance bill (required due to my home equity loan) went up more than $100 this year despite no hurricanes and decreased values on homes, etc., I called my insurance company, which I've done business with for 40+ years. They've always done this incremental increase they say is necessary due to inflation.
But we have 0% inflation, a first in more than 40 years, according to gov't reports. And since I'm retired and have time to fight these arguments better, I went in for a thorough review of how they charge me, etc. Zero inflation, I told the lady.
Then she said State Farm was raising the hurricane portion because they expected more hurricanes this year. I pointed out to her that the state hasn't had a hurricane since Iniki and coincidentally, the news that day was that scientists expected FEWER hurricanes in Hawaii this year.
I had checked with the State Insurance Commissioner's previous to my appointment and found that State Farm had been given permission to raise its rates. But the man I talked to in that office said to check with my mortgage lender and find out the basic deductible I have to have to be covered for hurricanes. I didn't even realize there were different deductibles for the hurricane portion. Turns out I was paying the 2% deductible when I could have gotten away with 5% all these years.
So by the time I was finished with my insurance appointment, I was paying more than $250 less than what State Farm initially billed me. And I'm not paying for greatly inflated valuations that I would never recoup if my home ever did burn to the ground!
And the State Farm lady asked me to spread the word! So don't cancel your State Farm policy...go talk to them armed with the facts (zero inflation, no hurricanes) and get your bill reduced. [:X]
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Mahalo, all. Thanks Frankie for the info about the different deductibles on the hurricane portion alone. Good for you for pushing on that one. Luckily, we don't have a mortgage, ergo no requirements by a lender. It's just a matter of peace of mind vs. throwing $ away for something that may never happen. I think we need to talk to the agent again.
Am curious to know how many folks buy it and how many don't.
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quote:
Originally posted by Frankie Stapleton
I wondered when this topic was going to get posted. I think insurance companies are hitting consumers up for the lucre that they stand to lose via medical insurance.
[?] P&C is not L&H insurance and I really don't know of any sizable company that does both. Even if a L&H "parent" company also had a P&C company in their stable, they are two separate entities as far as the State insurance regulators are concerned. So I really don't know how losses in L&H insurance impacts rates in P&C insurance. [?]
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I'm not the smartest business person so I speak in generalities when it comes to many financial matters. I don't even know what P&C and L&H insurance are...property and casualty? Life and health?
I don't think State Farm worries about the STATE regulation...they just have to jump thru the state's hoops to authorize an increase and apparently it's not very hard to justify a rate increase with the state insurance commissioner, as State Farm did within the last few months with no hurricanes and no inflation.
I'm talking about insurance companies with multiple lines of insurance ( in fact they're now almost like banks, with their multiple lines of service) recouping on the TOP level, not down here with us peons. Every time I get a new flyer from State Farm, they're offering me another service that they didn't have before. Now they offer health insurance and the very latest they're trying to sell me is Certificates of Deposit.
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This is a timely topic for us (me and Seaside Bob). We declined the hurricane insurance too. SB's feeling was he is a builder and if we lose the roof - well he wanted to remove and replace it anyway so it saves him some money on the remove portion. [
] Thats the cliff notes version anyway!
The ins co is charging us for a pool!! A pool that doesnt work and has no water in it, is unpermitted anyway, no elec to it to even run filter system right now. Cant get out of that!
If the pool didn't have to be insured, we may have thought more about hurricane insurance a little but we had to make cuts being in Lava Zone 2, and tsunami zone.
