I received my homeowners’ insurance policy renewal a few weeks ago. This is one thing that I’ve always looked at but never given any real consideration. Perhaps its ignorance or maybe I think it’s a necessary evil, but I put it off to the side and don’t give it much thought. This year I looked at the renewal notice because I’ve been getting calls from the insurance broker that insures my cars asking me to consolidate my homeowners’ policy.
It turns out that the premium on my existing homeowners’ policy is going up by 10%! I was shocked and pulled out the previous year’s renewal notice and it too was an increase of 10%. In the two and a half years I’ve owned this house my insurance company increased my premiums by a total of 21%. I have no idea how they justify a 21% increase. House prices have not increased by that much and I can’t see my home and neighborhood being that much risky in two and a half years. Needless to say, I called the broker who provides my car insurance and asked for a quote.
After a ten minute phone call and a fax of my current policy to the other insurance broker, I had a quote. Here is what the company that insures my car quoted me:
- Coverage for the exact same perils
- Same deductible
- The provided a blanket liability coverage for my home and cars
- Identity theft protection
The same policy plus a few extras resulted in a 15% DECREASE from my current premium. To top it off (it gets even better), my homeowners’ premium will be decreased by 5% this year and a further 10% next year. In addition, they are going to reduce my car insurance premiums by 5%.
The decision was an easy one. I took their offer and my existing policy will lapse. I also fired the insurance broker who sold me the policy in first place. This guy was looking for easy commissions with little service.