A homeowner's excercise in futility

[yellowpages]

Given the approximately $1,000 increase to renew current insurance policy we asked 4 different agencies to quote for coverage. There was all of a $3.00 difference in the quotes. Whatever happened to competition:confused:

[yellowpages]

I really do need a spell checker.

[TinCanMan]

Anyone mind telling me what their house insurance costs per year? What types of policies, etc. I would like to get a little educated before I talk to an agent. I have a contract on a home in Cherokee, closing will be Nov/Dec.. It is an Abaco pine house.

[SusieAndAl]

We have never filed a claim, spent a fortune building our home way beyond code (huge foundation, massive reinforced concrete, metal roof, superior construction techniques, Lexan hurricane shutters, the finest materials etc). Still didn't matter!

But to be fair, we've been told by many folks that their claims were paid very promptly and fairly -- unlike many of the horror stories in Florida.

We're on the beach, so our rates are higher. We pay about $4400 per year. You get discounts if you're at least 50 feet from the water, and use either concrete or Hardi construction.

[SamFamAustin]

Yes, that looks like about $1,000 higher than what we just got for a small place on an island in Texas, although we're only claiming 200 + 50 + 50 (thousands for total losses, house, contents, etc.). Flood was the biggie, even though we're not insuring the bottom floor (our house is on stilts). Wind was through the Texas Insurance Risk Pool, not too sure if you have something like that on the Abacos. General house insurance (theft, fire, etc.) was the cheapest. Not too bad, being in "hurricane alley", altogether. Hopefully you have some tax incentives or resale value to cover those increases! - Sam & Lori Wells, South Padre Island.

[bellavista]

going rate seems to be 2% of value, don't underinsure or coinsurance could get you, with a 2% deductible.

E.G.--500,000 home (estimated cost to rebuild if total loss) is 10,000 premium with 10,000 deductible for hurricane. 250 or 500 dollar deductible for rest of claims.

[gatorman71]

There aren't going to be any deals, anywhere, in a place that sustained two direct hits from major hurricanes the previous year. No different in The Bahamas than the US. In fact, prices might be better in The Bahamas. You know what they say.

If you want to save some money, you can buy just fire insurance and self-insure for hurricanes. It doesn't make much sense to me though to invest in property in a hurricane rich environment and not buy the insurance unless you can easily afford to rebuild.

I can remember when the insurance on our house, including hurricanes, was about $500.00 a year. I think Hurricane Erin upset that apple cart though. It increased steadily after that. No getting around it. You are actually lucky you can even buy it.
Read your policy VERY carefully.

[yellowpages]

Anyone mind telling me what their house insurance costs per year? What types of policies, etc. I would like to get a little educated before I talk to an agent. I have a contract on a home in Cherokee, closing will be Nov/Dec.. It is an Abaco pine house.
Quotes are just slightly above 2% of the coverage you request. For instance, $200,000 plus $20,000 for contents is in the area of $4,200. Insuring for full replacement value in order not to have any further deductions in case of a payout requires refiguring your replacement value every year and adjusting your coverage accordingly. With seemingly ever rising construction costs this gets very expensive and for some of us mandates buying less than full replacement value coverage. That being said...our experience with two claims has been satisfactory as regards the payout, however, it took 3 1/2 months to settle last years claim.

[PELLUCID]

If you get 4 quotes from independent vendors and they are all within a few bucks, that is what you expect from from a competitive market. It takes a surprisingly small percentage of customers who care about getting the best deal to drive all prices to the same level for everyone. I understand they cover this in Econ 101 which I would have taken if I hadn't dropped out of high school :D

[yellowpages]

If you get 4 quotes from independent vendors and they are all within a few bucks, that is what you expect from from a competitive market. It takes a surprisingly small percentage of customers who care about getting the best deal to drive all prices to the same level for everyone. I understand they cover this in Econ 101 which I would have taken if I hadn't dropped out of high school :D...and I'm not saying this is the case with Abaco insurance rates...
could not the same result come about through "price rigging" or monopolization of the market and etc. but with the prices being driven up. I guess what I'm saying is that the "level" you refer to can very well be to the consumer's disadvantage, or not, as the case may be.:confused:

...and I took Econ 101 sailing through with an ungentlemanly D...got an A for partying however.;)

[OldHatt]

There are no conspiracies and there are no deals on insurance on waterfront homes, just like there are no insurance deals for boats anymore. It just costs a lot of money. Period. If we want to live in paradise we have to pay the piper. OTOH, I have an aunt who happily lives in Kansas where you can still buy a very nice house for $60,000 and her total property insurance cost is less than $300 a year. But would you trade paradise for Kansas? Personally, Kansas is not for me and I will pay whatever it takes to live here. I learned a long time ago: Just Shut Up, Pay the Gaff and Pass the Heinekens. At least the Abacos are not facing what the Florida gulf coast is about to face - the wrath of hurricane Dennis, now a Cat 4 monster.

[HALF-A-HAMIAN]

..get me out of Kansas FAST!!!
There are no conspiracies and there are no deals on insurance on waterfront homes, just like there are no insurance deals for boats anymore. It just costs a lot of money. Period. If we want to live in paradise we have to pay the piper. OTOH, I have an aunt who happily lives in Kansas where you can still buy a very nice house for $60,000 and her total property insurance cost is less than $300 a year. But would you trade paradise for Kansas? Personally, Kansas is not for me and I will pay whatever it takes to live here. I learned a long time ago: Just Shut Up, Pay the Gaff and Pass the Heinekens. At least the Abacos are not facing what the Florida gulf coast is about to face - the wrath of hurricane Dennis, now a Cat 4 monster.

[chasesend]

I am not an expert, but I believe that Loyds is the only underwriter that will write the Bahamas. You may get quotes from several agencies, but they all go to Loyds for coverage. Thus the price is the same with everyone.

[yellowpages]

I am not an expert, but I believe that Loyds is the only underwriter that will write the Bahamas. You may get quotes from several agencies, but they all go to Loyds for coverage. Thus the price is the same with everyone.
...if so, it would explain the situation.

[SamFamAustin]

Agreed, Lloyd's is probably it (with two "L"). They also do ships and boats along with ABS (US) and Bureau Veritas (France). Sorry, I happen to know more about the boating market. Your insurance broker trades the policy up to an underwriter such as Lloyd's. Typically the insurance broker will handle a straight commission or percentage of coverage, a very competitive market; the broker has little or no control over base casualty prices. Not a lot of Econ 101 there - more like a tyrannical monopoly!

Of course, if you don't borrow money such as in a mortgage or bank note, you can forego any and all insurance ... but it is quite a risk if you don't have at least 50% of the value of replacing the property in liquid assets that make more than 3-5% net profit (or you're losing the game). So you can become your own "insurance company" if you're rich, but you'll need a lot more than Econ 101 ....

As a side note on commercial ships, a condition of being registered (flag of convenience) and shipping (hull and engine and safety), these giant insurance companies also are known as "classification societies." The Bahamas is one of the more frequent "flag of convenience" and Lloyd's is the classification society, an arrangement that probably goes back at least a century or more. swells.