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Is this a bad idea?

Posted by CarolsSis (My Page) on
Fri, Feb 20, 04 at 19:06

We are considering moving all of our insurance to the same company. 2 cars, house, and possibly life insurance. I called around and got quotes, for both cars and homeowners insurance, one company gave me a better rate for the cars, but not for homeowners. If we chose to go with them for all of it, we would save money, even with the higher premium for homeowners. Also, what is the insurance called that pays off the loan if a person dies? Is it called mortgage insurance? We don't have that and should. Our present homeowners company has just sent me a nasty letter regarding our claim for loss, and basically threatened me that they would consider it closed if they did not hear from us in 15 days, although the policy states that we have 1 year to make the claim. I was under the impression that the claim was made the day I called them to tell them of the theft. Am I wrong? If this is the kind of treatment we get, I don't want it. AND they don't even have my first name right. So, mortgage insurance? all at one company? and when is claim made?

Follow-Up Postings:

RE: Is this a bad idea?

I think in general all at one company is best. Not only do you often get a discount, but you get to know the agent better and often get better treatment.

You are probably referring to "mortgage life insurance" when you mention a type of insurance that pays off the mortgage if someone passes away. It can be an okay idea, but you might be better off just purchasing a standard term life insurance policy. The primary income earner would purchase a term insurance policy on his or her own life. If necessary, both husband and wife could purchase term policies. They could wind up cheaper than mortgage life insurance, and would be more flexible and useful because the insurance could be taken out for more than just the outstanding mortgage balance, and the survivor would still get the entire insurance payment even if, say, the house was just five years from being paid off when the spouse passed away.

I'm not sure about the rules for claims, but it sounds like possibly you were sent something that asked for a response, to which you did not respond. Maybe you never received it. Just call the agent and ask what you need to do.

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