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View Diary: According to my home insurance plan (43 comments)

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  •  How much have you paid out since 1985? (1+ / 0-)
    Recommended by:
    FloridaSNMOM

    And has your premium ever decreased over time?  Even after the financial crisis when my house lost 30%of its value my premiums didn't decrease as they should have.

    The  cost of my auto insurance doesn't decrease when the value of my car decreases over time.

    Insurance companies do not pay for anything that's not covered.  That's for sure.

    In my opinion, you shouldn't be paying insurance to help cover someone else, you should be paying insurance to cover yourself.  It's nice that you think that your premiums help others and they do, but that is not how the insurance company is behaving.  Haven't you noticed an increase in insurance claim denials?  

    My point is that insurance companies have been trying to relieve themselves of paying claims more and more.

    •  I think you misunderstand the nature of insurance (8+ / 0-)

      if you think policyholders shouldn't be paying to cover the claims of others as well as their own. That is the essential nature of insurance -- pooling resources to spread risk. Do you also think people should only get back what they contribute to Social Security or Medicare?

      •  SS and Medicare are not voluntary payments. (1+ / 0-)
        Recommended by:
        Gooserock

        We don't have a choice and therefore the payouts aren't dependent on a small Clint base like private insurances are.  Plus they don't have the overhead involved in a private company.  Especially a for profit insurance plan.  When a private insurance plan starts to lose money, they increase premiums, they don't decrease the salaries of company employees.  

        Even if the insurance makes a mistake, the insured pay for it with increased premiums.  When I sign up for insurance I'm not told that any claim is dependent on the number of customers they may or may not have.  That's not my problem.

        Medicare and SS payments are secured by the government.  The government doesn't try to withhold payment.

        •  I encourage you to learn more about insurance, (0+ / 0-)

          particularly Medicare. Parts B and D are voluntary, and yes, the government does try to withhold payment -- just less frequently, in part because of the difference in profit motive but also because most providers know what's going to be approved and how to code it. Medicare for all -- which I favor -- would likely end up being quite a different claims experience than Medicare as currently administered. Better than the system we have now, but not the buffet of services you seem to think Medicare provides now.

          Social Security fights about payments under the disability part of the program all the time -- enough to justify big TV ad buys for law firms that fight for them.

          You may need to shop around for your car insurance -- sounds like you might be getting bad advice.

          I think we don't have enough of a shared knowledge base to have a useful discussion on the rest. I do understand your frustration with insurance companies -- I've wasted plenty of hours wrangling with them myself. Good luck.

          •  You know I was referring to the Medicare that (0+ / 0-)

            every adult over 65 who signs up for Medicare immediately qualifies for, the Medicare that is paid for by workers and their employers.  Call it Original Medicare or Medicare A, whichever, you know that's what I was referring to, that Medicare.  The Medicare that is funded by nearly every employee and employer in America, tha Original Medicare paid for by taxes which are not a choice.

            You also know that I was referring to legitimate claims to Medicare and SS, not fraudulent Medicare claims or questionable SS disability claims.  

            I don't think I'm ignorant, but thats what all ignorant people say about themselves.

            I work in healthcare and I know quite a bit about Medicare and insurance.  Probably not as much as I should but enough to know what I am talking about.

            Medicare does not try to withhold payments.  They try to limit fraud, they try to curtail abuse, they try to improve health care in general by requesting the Medical Necessity behind claims.  They don't try to withhold payment.  Politicians do, but Medicare doesn't.

            I hope I made myself more transparent.

    •  Decrease? (0+ / 0-)

      Are you kidding?  They increase annually on an inflation-assumed basis, and it's virtually impossible to buy a policy for the actual market value of the house as opposed to a "replacement value" which assumes that you would rebuild the exact same structure (at lower modern quality, as I only own older homes built before modern "innovations" in cheap, undersized green lumber).  Getting them to NOT increase when the market value of the house or the mortgage doesn't justify it requires writing an entirely new policy every years, a request which appalls your agent.

    •  The whole point of insurance (3+ / 0-)
      Recommended by:
      susanala, grover, Villanova Rhodes

      is risk pooling...

    •  You need different car insurance. (2+ / 0-)
      Recommended by:
      Villanova Rhodes, grover

      With every car I've purchased, the premium has gone down each year for the same coverage.

      Just because you're not a drummer doesn't mean that you don't have to keep time. -- T. Monk

      by susanala on Wed Dec 26, 2012 at 09:07:33 AM PST

      [ Parent ]

    •  Building materials continue to skyrocket (1+ / 0-)
      Recommended by:
      Villanova Rhodes

      In cost year after year. Ask anyone who shops at Home Depot, Lowes, or their local hardware or lumber store.

      Once Asia started to buy American and Canadian timber, steel,  and concrete products? Jeez, it's crazy how fast prices went up.

      Replacing you home has NOTHING to do with its resale value, unless you intend to demo it (which you need to pay for, and is not cheap) and move into another home. Yes, if you buy a "replacement" home that is very similar in kind and quality, your insurance might in fact pay for that instead of rebuilding your old home, but you are only insuring the structure(s), not the land. It's an option.  It's a big hassle, but it IS an option.

      Most people don't want to leave their neighborhood, their neighbors, deal with all of the other issues of moving -- and there is that pesky issue of having to sell your land.  

      I review my coverages with my insurance agent every year, and I often ask for an increase in coverage because their standard inflation increase does not match the construction materials inflation rate. I chat with friends in the various trades. Do you know what copper runs these days?

      Finally, since 1985, I've paid about $45k in the insurances I named above. The longer I've been insured with this company, the deeper the discounts. Multiline, claims free, +20 years and other discounts add up to almost $1000 per year.  

      Now, I can't replace my home for $45k. I could replace my kitchen for that much, as long as I don't burn the whole darn thing off.  I certainly can't withstand a lawsuit if a nice Avon Lady or canvasser tripped coming up my stairs and seriously hurt herself.

      I'm extremely careful and take pains to ensure we never have to put in a claim (which includes carefully considering where we buy our home, how it's sited, having a  full monitored alarm system, unplugging small appliances when we're not using them, fully training my dogs, always having a clear and safe front porch, etc) and we have been extraordinarily blessed.

      But I don't begrudge the money I pay for insurance either. My home, car, and life insurance is protection which I have 24 hours of the day.

      My health insurance? Eh, as Villanova Rhodes said, that's iffier.

      © grover


      So if you get hit by a bus tonight, would you be satisfied with how you spent today, your last day on earth? Live like tomorrow is never guaranteed, because it's not. -- Me.

      by grover on Wed Dec 26, 2012 at 10:57:50 AM PST

      [ Parent ]

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