Canadian Money Forum banner

1 - 20 of 35 Posts

·
Registered
Joined
·
771 Posts
Discussion Starter #1 (Edited)
Our house insurance was up for renewal and I decided to shop it around and was surprised at the varied quotes received. Here they are:
$681.00
$1,506,00
$1,666.00
$784.00
$1,519.00

Our home is in Kelowna and the coverages quoted on were all similar. We have a nice updated 35 yr old home (2000 sq ft rancher with w/o 70% finished bsmt) on .70 acre view lot. Total sq footage is just over 4000 sq ft with 3 decks and attached double garage. We have had no claims since purchasing the home 18 yrs ago and I don't understand the reason for the large variances.Crazy.
 

·
Registered
Joined
·
6,871 Posts
It all depends on the exposure of the mother company. If they had coverage of fort McMurray, for example, they had a lot of payouts and their profits have suffered. Similarly the Calgary floods from the year before and the fires in BC.

If they didn’t have that exposure, they can afford lower rates.

It pays to shop around, I saved over $2000 just on car insurance this year just by making a phone call (the drawbacks of having young drivers).
 

·
Registered
Joined
·
1,784 Posts
frase, I can one-up your variance story.

More than a decade ago, we built a log house off-grid and expected to pay through the nose for house insurance. We had to report that the nearest fire fire hydrant was more than 20 miles distant and the nearest firehall about the same and, then, the fire truck would have to come by barge.

So, I started out paying about $3,200 a year. I just bit the bullet as the premium went up a couple of hundred bucks or so every year. A few years ago, when it reached $5,400, I gave serious consideration to self-insuring. Before doing that, I decided to have a go at shopping around. Glad I did. I now pay about $2,200 a year.

I think the long claims-free history helps, but it seems some insurers give that factor more weight than others. My present insurer said they put some store in my being able to prove that I have had at least one, and usually several more, properties insured continuously since 1976. My only claim in all that time was on a Vancouver rental duplex in 1980. The house had a single-car garage in the back lane and a concrete parking pad beside it. The car of the tenant who parked on the pad caught fire. One side of the garage got a bit singed. Really, just a coat of paint to fix it. The insurer (Wawanesa) arranged for the work to be done and paid out $500. Today, I would not make such a claim (even grossed up for inflation) and have it on my record. I'd pay any repair bill out of my own pocket.
 

·
Registered
Joined
·
2,122 Posts
We have experienced similar differences in Calgary on both home and auto insurance.

Now we check our rates every two years or so OR if our policy increases at a rate significantly above inflation.

LAst time we switched both we realized an $800 savings. When Statefarm was sold, the successor firm not only increased the rates but they doubled the deductible. We walked.
 

·
Registered
Joined
·
10,050 Posts
Our house insurance was up for renewal and I decided to shop it around and was surprised at the varied quotes received. Here they are:
$681.00
$1,506,00
$1,666.00
$784.00
$1,519.00

Our home is in Kelowna and the coverages quoted on were all similar. We have a nice updated 35 yr old home (2000 sq ft rancher with w/o 70% finished bsmt) on .70 acre view lot. Total sq footage is just over 4000 sq ft with 3 decks and attached double garage. We have had no claims since purchasing the home 18 yrs ago and I don't understand the reason for the large variances.Crazy.
My take would be there is something seriously wrong with the 2 low quotes for the size of home you are talking about. Care to disclose who the 2 low quotes are from? We are in a similar, but slightly smaller sized, walkout rancher home built in 2000 (but with an in-ground pool) in the same general urban area and our renewal this summer was just over $1300. We have not bothered to check out competitive quotes for the 6 years we have owned the home.
 

·
Registered
Joined
·
771 Posts
Discussion Starter #6
My take would be there is something seriously wrong with the 2 low quotes for the size of home you are talking about. Care to disclose who the 2 low quotes are from? We are in a similar, but slightly smaller sized, walkout rancher home built in 2000 (but with an in-ground pool) in the same general urban area and our renewal this summer was just over $1300. We have not bothered to check out competitive quotes for the 6 years we have owned the home.
PM sent
 

·
Registered
Joined
·
782 Posts
I can't comment on home insurance but for auto insurance I am with Johnson since 2009. Every year I get couple of quotes for the same coverage and not a single company can match the premium of Johnson so far.
 

·
Registered
Joined
·
10,050 Posts
I can't comment on home insurance but for auto insurance I am with Johnson since 2009. Every year I get couple of quotes for the same coverage and not a single company can match the premium of Johnson so far.
Who is the actual insurance company though? I think Johnson is just the agent.
 

·
Registered
Joined
·
3,902 Posts
Is it possible to get JUST fire insurance coverage only, on your home.?

Prob. like most people, i pay my renewal each year ( seems to increase each year too!) Then poke it in a drawer for 12 months til the next renewal notice comes again. tear up the old policy & stick new one in the drawer. Repeat.
Never a claim in 40 years......
The only thing i worry about is da wife leaving a pot to boil over on the stove & catch fire to the house.
 

·
Registered
Joined
·
10,050 Posts
Why would you not cover for wind damage, water damage due to roof being torn off, etc? Fire is down the list on risks. Contents need the same coverage for the same reasons. What about liability if someone falls and becomes a paraplegic and sues for $2 million? There are a host of 'perils'.
 

·
Registered
Joined
·
2,122 Posts
Last year I read a study done on auto insurance in the UK.

There was a general feeling that existing customers paid higher premiums than new customers. The study, I believe by AA, found this to be true and placed the loyalty premium at 25-30 percent.

Their advice....shop at least once every two years or earlier if premiums in year two rise too much. Their conclusion ? The lower premiums that new customers pay are financed by existing, loyal customer who find it more convenient to renew than to shop. I suspect that this is true in Canada for both home and auto. Our premiums took a jump this year. Not certain if it because Alberta had the highest per capita home insurance claims due to weather or because the insurer wants to move us up their 'premium curve'. In any event at the end of year two next June we plan to shop the market to see what is out there. Why not?
 

·
Registered
Joined
·
509 Posts
Last year I read a study done on auto insurance in the UK.

There was a general feeling that existing customers paid higher premiums than new customers. The study, I believe by AA, found this to be true and placed the loyalty premium at 25-30 percent.

Their advice....shop at least once every two years or earlier if premiums in year two rise too much. Their conclusion ? The lower premiums that new customers pay are financed by existing, loyal customer who find it more convenient to renew than to shop. I suspect that this is true in Canada for both home and auto. Our premiums took a jump this year. Not certain if it because Alberta had the highest per capita home insurance claims due to weather or because the insurer wants to move us up their 'premium curve'. In any event at the end of year two next June we plan to shop the market to see what is out there. Why not?
I have long suspected this kind of business strategy from the insurance industry as well, but it is difficult to prove, of course.
It’s a pain to have to shop every couple of years, but it seems to pay off.
 

·
Registered
Joined
·
6,871 Posts
Ironically, I’ve heard of many businesses which don’t carry insurance at all...when something goes wrong, and the lawyers come out suing everyone, they don’t bother to go after those without insurance, since they’d just declare bankruptcy, and go after those who do, even if they weren’t the cause.

Sad part is, those companies usually wind up paying because “it’s cheaper than going to trial”, even if they didn’t do anything. Pretty sad system.
 

·
Registered
Joined
·
536 Posts
We just got our renewal for house insurance. Increase over last year is 26%! Been with them for >30 years - no claims. Nothing disastrous in this area that I'm aware of. Rural Ontario. Will definitely be shopping
 

·
Registered
Joined
·
2,122 Posts
Our SIL is in the construction industry in Ft. Mac. Has been for ten years or so.

Folks who sustained damage during the fire saw the good and the bad insurance performers. Among the very best, according to the experience of friends and through his businesses, was TD Meloche. Lot of unhappy AMA and Intact home insurance policy holders apparently.this is strictly heresay of course.
 

·
Registered
Joined
·
1,668 Posts
Prob. like most people, i pay my renewal each year ( seems to increase each year too!)
It's called inflation! Building materials, Labour costs, etc. This explains why premiums seem to creep up each and every year. I expect my policy to be a little higher. Most companies seem to use 3-5% as an inflation target. At least for those policies that have replacement and guaranteed replacement cost. It does however not explain why some some policies will see a 20-30+% increase. These types of increases could be do to claims, catastrophic events, charging for coverages that use to be free, greed! etc.
 

·
Registered
Joined
·
698 Posts
I’m about $2200 (with tax) a year. $2million liability. $25,000 sewer back up protection. Waterfront property in rural Ontario. Raised 1.5 bungalow with walk out basement. Approx 2000-2200 sq ft. Seems excessive. I have my cars/bike with the same company as well as affinity discount (alumni).

does it seem fair?
 

·
Registered
Joined
·
1,668 Posts
I’m about $2200 (with tax) a year. $2million liability. $25,000 sewer back up protection. Waterfront property in rural Ontario. Raised 1.5 bungalow with walk out basement. Approx 2000-2200 sq ft. Seems excessive. I have my cars/bike with the same company as well as affinity discount (alumni).

does it seem fair?
Seems quite high. What is the limit you have on the building - 600-750k?

So many factors - do you max out all the available discounts - mortgage free, alarm system, credit consent, etc. Claims history, any add one's (boats, schedule jewellery, etc).

With an alumni discount you'd think it would be closer to 1300-1500 plus tax. Maybe even a lot lower.

Rural hurts you a little (no hydrants) but if you're close to an accredited fire station you'd still be considered semi protected.

No harm in shopping around. Let us know what you get for pricing. Bit of a pain because you have to shop everything but the price seems quite high so it may be time well spent.
 
1 - 20 of 35 Posts
Top