Tuesday, February 24, 2009

Home Insurance

While I was on an insurance frame of mind yesterday, I took the opportunity to review our home insurance renewal. The premium is increasing by $170 a year. Not exactly sure why other than costs tend to go up each year. We are still insured for the same amounts.

So, I got back on the phone to ask about how much of a difference it would make if we were to increase our deductible as an exercise. Apparently, how much you are allowed to change is dependant on how your policy was underwritten?!

The broker has to type in a number to see if the "computer" will accept it. In our case, she tried inputting a $2000 deductible. It took it. We currently have a $1000 deductible.

We talked about the pros and cons about increasing deductibles for your house , ie.
  • What type of damage would you file a claim for?
  • Would you file for a broken window?
  • I told her I would claim if a tree fell through the house or if it got flooded but other than that, I would replace my own window.

By the end of our conversation, I told her to go ahead with the increased deductible. We will be saving $16.12 a month from what we have been paying and $23.85 a month from what we were going to be paying.

An informal survey revealed one person we knew who has ever filed a home insurance claim. And that was for their house burning down. Do you know of many people who have submitted a claim?


  1. We submitted a claim in December 2007. Due to freaky weather and temperature changes over a 24 hour period, we had an ice damming situation on our roof. This resulted in our living room ceiling landing on our living room floor.

    The resulting claim was for tens of thousands of dollara. It took weeks of mould specialists and tradespeople to put our house back together again.

  2. We made a claim when a water leak from the bathroom brought the ceiling partially down. The insurance company did all the repairs directly with the sub contractors and we paid our £50 deductible. Doesn't sound like our deductables are as high as yours though.


  3. Hi Money Minder and Lizzie!

    Wow, both of you with a water related claim-- and major ones at that. They tell me that water represents 80% of all home claims.

    As of deductables, I know we can have lower deductibles but the cost of the premium would be astronomical!

  4. I increased my deductible to $2000 as well, though I don't think I saved nearly as much as you! I wouldn't claim except for something major, sadly insurance claims are viewed in a negative light. My parents had a claim after one of the hurricanes, wind damage to the roof. It was a major pain they said and the insurance fought them on it. Then they discovered along the way the policy had changed without their noticing, so it didn't cover as much as they expected.

  5. Hi Miss M!

    There exists a similar stigma here too. Most people I know won't claim for small house or car issues as they are afraid their premiums will skyrocket.

    When you think about how much everyone pays each year, and how much money they make, you would think that should not be the case!

    Personally, I think the insurance companies have gotten too big and powerful.