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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Suma who wrote (48464)2/13/2006 11:33:27 AM
From: GraceZRead Replies (2) of 306849
 
It's not just the house and your possessions which are insured it is you, for liability. With no insurance you could lose your house in a lawsuit. You used to be able to just buy fire insurance through a mutual type insurance company. Sometimes whole communities would form their own mutual insurance company.

Was the sharp increase due to the insurance company raising their rates or from a sharp increase in the replacement cost of the house? A lot of people think that they are getting reamed by the insurance company only to realize that the total amount of insurance has risen sharply due to the cost of rebuilding their house going up in their locale. Florida has really high construction rates due to the amount of rebuilding that had to be done after the hurricanes, it drove up the costs on everything.

If it's a rise in their rates (amount you pay per $100 of coverage) you could shop the policy around, usually the price you get to switch is much lower than the price to stay with your current carrier.

The other thing we did to keep our policies within a reasonable range was to keep the liability at the minimum and then buy an umbrella policy that picks up where the underlying insurance ends.

It's pretty cheap and it allows you to keep your auto and homeowners at the minimum for liability, around 300k, but be covered up to a million. Of course, having lots of liability coverage probably increases the probability of getting sued at some point. If you want to be completely judgement proof, don't own anything and don't buy insurance.
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