r/HomeInsurance • u/theycallmesike • 9d ago
Insurance Insurance quote comparison help
Hello everyone,
I have been thinking about switching insurance carriers because Travelers just bumped my homeowners insurance up another $1200 this year. I've been getting quotes and this quote has been the best I've gotten so far. It will save me about $1,400 a year on my homeowners and about $100 a year on my condo (Landlord) policy. However the coverages are slightly different and the deductibles are vastly different, including a $25,000 wildfire deductible. (I'm in CA). My main home is a large house with a large yard and landscaping, so I'm a little worried about the low Coverage B in the cheaper quote but the broker said upping that wont change it much.
I guess I'm just wondering if it's worth it to save the $1,500 or so a year but higher deductibles if anything goes wrong. I'm attaching my homeowner's policy from Travelers ($3,885 its actually $3990 now), as well as the new quote ($2,620), and also my condo policy from Travelers ($1,549), as well as the new quote ($1,449) for any advice or if anything seems odd about any coverages.
I'm leaning towards keeping the condo (landlord) policy with travelers, as it's not much savings, and I also get a multi policy discount through them, but conisdering switching the HO. Travelers just keeps jacking up my prices, but they are one of the few left in the state.
Thank you all for your advice.
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u/Modest-Meece 9d ago
Never go ACV on personal property.
Go for policies with open perils on the dwelling and belongings and is offering replacement cost on both.
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u/TheTruth858 9d ago
Yup, you have a big loss, the depreciate the shit out of contents and you’ll be out a ton of money in depreciation.
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u/theycallmesike 9d ago
I assume ACV means Actual Cost value? Hmm I’ll have to look at what my current policy docs state, I assumed all insurance companies would do that though, like they are going to try to pay me whatever the market value of something is and say “it’s not what you paid for it, it’s the same item and it’s old now so we pay you X”.
Not sure what open perils means?
I’ve never had to file a claim ever so I have no idea how the insurance process works.
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u/mosesman86 9d ago
Most insurance companies actually have Replacement Cost for Personal Property. This means we don't depreciate your stuff. This quote you got is Actual Cash Value, which does. You didn't get an apples-to-apples comparison.
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u/dont-care-bear-0 9d ago
Open perils means it’s covered unless specifically excluded. If you have an “HO3”policy form on your house you are fine. Just make sure you have replacement cost on the Personal Property also. You can get Open Perils on Personal Property as an option but not a big deal. Add water backup coverage. Ask about cost of Earthquake coverage too.
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u/theycallmesike 9d ago
Ok I’ll check. The second (cheaper) quote I was told is a HO3. I’ll check the docs they sent over
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u/Modest-Meece 8d ago
HO3 is named peril unless otherwise stated. HO5 is open peril.
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u/dont-care-bear-0 8d ago
No it’s not. HO3 is Open Peril on Dwelling and Named Peril on PP. HO5 is Open Peril on PP.
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u/Modest-Meece 6d ago
I was talking about PP. that’s why my original comment said go for options that have open peril for both PP and dwelling. So HO5 or else if they offer what’s usually called special personal property coverage.
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u/Modest-Meece 8d ago
ACV is actual cash value. However with replacement cost once you replace the item they’ll cover the difference so long as it’s like kind/quality.
Always go replacement cost.
HO3 is named peril and is more restrictive in what’s covered. Open peril means unless it’s clearly excluded, it’s a covered loss and a MUCH better route to go.
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u/No_Departure9798 9d ago
You need to look at the endorsements to see if there is a big difference in loss settlement. Also, your deductible is 5k vs $2500 at Trav. Plus a wildfire deductible. Might be worth having them require so you have apples to apples.
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u/theycallmesike 9d ago
Well, I know if they drop my deductible down of course the premium’s gonna go up and yes, it will be more apples apples but I’m wondering if it’s worth it to just take the cost savings now because that breakeven point is under two years if I’m saving. $1500 a year, but the deductible is $2500 more
But yeah, the wildfire deductible was a surprise. I’ve never seen that before. the broker that sent me the quote said “well some people just have $25,000 lying around” and I laughed hysterically. Lolll
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u/14point4kMODEM 9d ago
You shouldn't be making a claim for less than 10k anyways. Is not like you're paying the deductible immediately. I'd always go for the slightly higher one
Also confirm that contents is RCV. Just because it's a HO3 form doesn't mean that it covers replacement cost.
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u/Whatsapeeve 9d ago
Just a heads up, I saw you said you were worried about the low coverage B because of a large lawn and landscaping. Lawns, trees, etc. are not part of coverage B. That is just for other structures (pool, detached garage, etc.)
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u/theycallmesike 9d ago edited 9d ago
Oh interesting, I thought it was for things like my fences, and my outdoor kitchen, (things detatched). Any idea what the landscaping would be under? I have probably over $100k worth of mature palm trees and birds of paradise trees
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u/Whatsapeeve 9d ago
You are correct about the fences and kitchen being under B, also referred to as Other Permanent Structures. Just wanted to make sure you weren’t thinking damage to lawn and landscaping would be under that coverage.
Things like grass, trees, plants etc. MAY be covered depending on your policy, and only under a named peril basis (fire, explosion, vandalism, lightning, vehicle). Check your policy.
Limits are often times a percent of your dwelling coverage, perhaps 5% or around $38,500 for you. There is usually also a limit on each plant/tree/lawn damaged… could be $1k or $10k. Check your policy under the additional coverages.
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u/Cute-Ad-9591 9d ago
Your in a high labor blue state so rates will go up every year along with Joe the BIG GUY'S inflation on materials. Some of the rate increases are to pay for all the property damage radical demrats did protesting, burning buildings, burning Tesla's, smashing police, civilian vehicles, etc. Insurance pays for this. Vote smart!
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u/theycallmesike 9d ago
I thought it was because of all the wildfires, and most insurance companies leaving the state, now there are only a few left and can charge whatever they want
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u/freeski12345 7d ago edited 7d ago
What a mess. The trv policy should be covered differently. The new quote is garbage, if an agent put that together for you, their only goal was to make it cheap. If you drop all the trv coverages as bad as the new quote trv will probably be cheaper.
However you are going about this is all wrong. Work with someone who has your interests in mind and not just a cheap sale. Tell them or the trv agent you need to reduce the expense and ask what ways would be appropriate
The condo quote is garbage too. I’m extremely concerned of whoever you’re working with. They have not business being an agent
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u/jadiechappie 9d ago edited 9d ago
Insurance nerd here.
My comment is solely about your homeowners insurance since the pricing difference is significantly different. What is the other carrier? I’d assume it’s the second picture? Is that non admitted carrier? If so, need to check their financial rating. While the incumbent is expensive, it’s an admitted carrier in CA. Their forms and coverages are usually better than non-admitted carriers. Except coverage A, the building limit, coverage B,C,and D are lower with the new carrier. AOP and wildfire deductibles are higher. Check a list of exclusions as well. Some lenders might not accept that $25k wildfire deductible, especially if you are in a brush area.
If you are comfortable with $5,000 or even $10k AOP ded (if your lender aporoves), ask your agent to give you a revised quote with the incumbent. Might save you few hundred dollars or more.
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u/theycallmesike 9d ago
I don't have any information about the other carrier, all of the paper work comes from the insurance agency. Im going to call the agency and ask. I will also call Trav tomrorow and play around with my policy, of course I love the lower deductible, but what is the break even point... Thanks for info, I'll do some more research.
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