Homeowners insurance rip off alert
I have a home much larger than I really need for a single person to live in. Ideally my home would be 1,000-1,200 square feet with a 5,000 square foot garage with heated floor.
My home is insured for guaranteed replacement value. It is a lie.
Value means a monetary figure agreed by the parties. The value to replace is set by the insurance Co., not me.
If this house were to (God forbid) burn to the ground the insurance Company would pay to rebuild it to make me whole again.
Now, this is where you get screwed for potentially BIG money.
If my home burns to the ground and I decide to rebuild a lesser home I only get the cost of the lesser home. If it was insured for and would cost 200K to rebuild and I build a 100K home instead the insurance company keeps the 100K!
That sure as hell ain't making the insured whole again. It is a rip off where the insured lost 200K and the insurance Company gets to weasel out of half of it.
What a messed up racket.
My home is insured for guaranteed replacement value. It is a lie.
Value means a monetary figure agreed by the parties. The value to replace is set by the insurance Co., not me.
If this house were to (God forbid) burn to the ground the insurance Company would pay to rebuild it to make me whole again.
Now, this is where you get screwed for potentially BIG money.
If my home burns to the ground and I decide to rebuild a lesser home I only get the cost of the lesser home. If it was insured for and would cost 200K to rebuild and I build a 100K home instead the insurance company keeps the 100K!
That sure as hell ain't making the insured whole again. It is a rip off where the insured lost 200K and the insurance Company gets to weasel out of half of it.
What a messed up racket.
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Worse compare your rates to someone living ocean front in Hurricane alley same thing with Auto someone driving a 100K vehicle doesn't pay the proper percentages compared to someone with no tickets driving a cheaper vehicle, more Subsidized by the rest 0 -
A situation whereby someone can cash out in the event their home burns to the ground invites fraud and innovative methods of accidentally burning a house to the ground. 0 -
quote:Originally posted by bpost
If my home burns to the ground and I decide to rebuild a lesser home I only get the cost of the lesser home. If it was insured for and would cost 200K to rebuild and I build a 100K home instead the insurance company keeps the 100K!
UUMMM....Yeah....If that's your big concern, just insure your 200K structure like it's a 100K structure. Save your money up front now in reduced premiums. Plus what Don said.0 -
quote:Originally posted by Don McManus
A situation whereby someone can cash out in the event their home burns to the ground invites fraud and innovative methods of accidentally burning a house to the ground.
I can see that scenario but being "made whole" has a meaning and letting insurance companies pocket big $$$ because someone decides to downsize in simply not right. BUYER BEWARE. The devil is in the details good luck reading the fine print it was written by a Philadelphia lawyer. [B)][:0]
I just spoke to a lady at a independent broker they deal with cash out insurance companies; she is going to get me a quote. I love American Capitalism, if you want it someone will sell it! [^]0 -
Insurance companies and banks. A big part of problems here in the US. 0 -
If it is a total loss take the Ins. money build a new $200,000 house put it on the market and take the money(all of it) and use par tof it to buy a $100,00 house 0 -
quote:Originally posted by XP100
If it is a total loss take the Ins. money build a new $200,000 house put it on the market and take the money(all of it) and use par tof it to buy a $100,00 house
That is not the point. I am paying for being "made whole" in the event of a loss due to covered event. I am so far out in the weeds any structure fire will result in a 100% loss, no doubt about it. It is my loss, an well insured one.
What I decide to do with the money after I am "made whole" is none of the dang insurance company's business. Maybe I want to build a hog farm building and live in it, maybe I want to relocate to a sod hut and live like a cave man on my 60 acres. The reason for my choice is mine. The Insurance companies job is to make me whole, that is done with money not caveats and trickery of words.
I just received news that I will get a quote for just the insurance I am seeking tomorrow sometime from another broker. [^][^][^]0 -
quote:Originally posted by bpost
quote:Originally posted by Don McManus
A situation whereby someone can cash out in the event their home burns to the ground invites fraud and innovative methods of accidentally burning a house to the ground.
I can see that scenario but being "made whole" has a meaning and letting insurance companies pocket big $$$ because someone decides to downsize in simply not right. BUYER BEWARE. The devil is in the details good luck reading the fine print it was written by a Philadelphia lawyer. [B)][:0]
I just spoke to a lady at a independent broker they deal with cash out insurance companies; she is going to get me a quote. I love American Capitalism, if you want it someone will sell it! [^]
Both houses we have are pretty much what we want, but I would imagine we would find areas to improve. I would put in a steel room with a safe door in one, for example.
Now that I think about it, I would like to have a steel room with a safe door. I wonder how I could go about getting most of that paid for. Hmmmmmm.....0 -
quote:Originally posted by Don McManus
quote:Originally posted by bpost
quote:Originally posted by Don McManus
A situation whereby someone can cash out in the event their home burns to the ground invites fraud and innovative methods of accidentally burning a house to the ground.
I can see that scenario but being "made whole" has a meaning and letting insurance companies pocket big $$$ because someone decides to downsize in simply not right. BUYER BEWARE. The devil is in the details good luck reading the fine print it was written by a Philadelphia lawyer. [B)][:0]
I just spoke to a lady at a independent broker they deal with cash out insurance companies; she is going to get me a quote. I love American Capitalism, if you want it someone will sell it! [^]
Both houses we have are pretty much what we want, but I would imagine we would find areas to improve. I would put in a steel room with a safe door in one, for example.
Now that I think about it, I would like to have a steel room with a safe door. I wonder how I could go about getting most of that paid for. Hmmmmmm.....
Unless you want to sleep for the remainder of your life looking at the FELONY of insurance fraud you might want to just save your pennies and pay for your steel room out of pocket.[:D]
Insurance won't pay to "improve" they pay to make you "whole" at the time of the loss, many policies are "guaranteed replacement value". That should make you whole but it is a bait and switch scam.0
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