Is it a national known company?
You do really need to be very careful when it comes to insurance with smaller
local insurance companies as well as major corporations.
The best time to know what you are getting into is before something happens.
I had State Farm home owners insurance and every six months the premiums would increase.
Truly I never concerned myself with the increase of premiums because it wasn't a whole lot
each time and also the coverage would increase to my benefit. So that went on year in and
year out for years.
Then when the fire destroyed my house, I was very upset of course. Contacted the insurance
company, the adjuster came out, etc. I really liked the adjuster. He was very nice and seemed
to be helpful. He said from the getgo that State Farm was doing something different now and
over the weeks that followed, explained how they pay out. Well, I didn't think anything of it.
I had enough to do with my working online, building an addition onto my shop to live in, deciding
to rebuild or move, listing everything I could think of in regards to my personal property, costs,
etc. So I never really gave it a thought about what he said 'doing something different'.
I would say that I was pleased with most everything but after all was said and done, it hit
me like a ton of bricks....
State Farm had actually cheated me out of approximately $150,000 dollars and more if one
was to count the $0 living expenses that they should have been paying all along but did not
In other words, my policy was for set amounts. Set amount on house, set amount on personal
property, set amount on shop, etc. The way my policy read, should anything happen, those
were the amounts I was to receive. INSTEAD, I was told I was fine because I was OVER-INSURED!
So everything was estimated and I would say for my personal property I was probably cheated
out of approximately 50 grand in regards to what I had been paying on my policy listing. Same
goes for my house, about a 100 grand less than what my policy stated.
Now listen, my policy was not for a million bucks. It was a normal average middle class policy
for an average middle class house in the South.....which is normally a lot less cost than in the
I can't tell you how long it was before I actually realized they did not pay out according to what
my policy stated. AND if I was OVER INSURED, then WHY did they keep raising my policy and
premiums every six months?
That is the negative I have to say about State Farm because I really do feel like they cheated
me in that respect.
I do have positive though. They did pay for addition I built on to my present addition to my
shop. In other words, I have a shop and a nice little room about the size for a small office that
is attached. When my house was destroyed, I stayed in a hotel locally for about a month and
then they brought in a big RV to live in on my property while the addition was built on. So they
did pay for my living expenses in that regards and they did pay for the cost of the small addition
which was about 30 grand. BUT with that said, they were suppose to! That is part of what my
policy was to cover. But they should have been paying me back for my food too but they didn't.
When you go through something like that, you are so upset and so many things on your mind,
you're just thankful you have the insurance. It's a big relief.
I don't know what you are paying to have covered, your home or your personal property or
both or what. If you have some questions about that, let me know. This is what I suggest:
-Make sure you sit down and read your policy from front to back
-Keep your policy in a safe deposit box or a fire box and at the least, in a jar in your freezer
-Keep ALL receipts of everything you ever buy and put them in a safe deposit box or fire box or freezer.
-Write down all your personal property that is in your home, the cost of it new, the year you bought it, where you bought it and put it in a safe deposit box, fire box, or freezer.
-Make sure your policy covers your 'living expenses' and make sure you know what that consist of:
food and shelter and possible build
-Make sure you know exactly what kind of disasters it will cover. Fire, Flood, Tornado, Earthquake, etc
-Make sure you realize your deductibles and how those deductibles will come off....out of pocket first of minus
Do your research online of the insurance company. See what the bad reviews say. Ask your
insurance company questions. Anything you need in writing, get it.
And yep, certainly shop around.
Some companies like State Farm want their customers to also use them for all their insurance
needs such as auto insurance and give reduction rates on home owners insurance if you have
your vehicles insured with them. Be sure to ask your insurance company about reduced rates
for stuff like that.