Let's Talk About Insurance
How do I approach this topic? Ok. What I want to find out is, how are you dealing with home insurance issues, and are you satisfied?
Insurance companies in the home owners markets are getting pretty darn particular these days, IMHO. For one thing, ever since Hurricane Katrina, they've just about stopped writing any new policies south of I-10 along the Gulf Coast of Alabama, Mississippi, and Louisiana. Not sure about Texas and Florida. Also, they've put in clauses about no wind damage coverage, and such as that, the policies they do write are of dubious benefit in case of a loss.
When we bought this house in Feb 2008, that April was the last policy they wrote NEW south of I-10, or so I am told.
We are not on the water, but I will never go without flood insurance again. It is cheap insurance. It was the ONLY policy which paid off big time when Katrina destroyed our house on the river. I think home owners paid about $1000 total. When you look at a $400,000 house/property, that was pathetic.
And I think my premium for home owners is upwards of $3000/year. That still has a % deductible for a hurricane claim, and a % deductible for any other claim. Plus the city has a new building code, and all windows that get replaced must meet the new standards, which could be out of pocket expenses for many folks. They may have insurance only to please their mortgage company, and not afford the extra "replacement cost" coverage.
So here we are in a high risk zone as far as the insurance companies are concerned. This situation means it is hard to sell a home because getting insurance to cover loss is a big deal to mortgage companies, you know.
I post this now because I read on Older Homes forum that an old house needed to have a certificate of updated wiring and plumbing in order to get coverage. If the homeowner does it themselves, how do you get such a certificate? Is that one of the benefits of building permits and inspections? And could some homeowner DIY-er then call the city to do an inspection after-the-fact?
Where will this subject lead? I really want you guys to give this thread some thought, and weigh in with your experiences and opinions. Thanks.