I think I’m losing it !! LOL – I asked my agent (state farm) yesterday what my rate would be if I RAISED my deductible from 1000 to 2000 dollars (in effort to save some money on the costs) – they reply back that it would INCREASE the premium by about 20 bucks !! Am I crazy or is this incorrect? Shouldn’t it go Down !!?? LOL… In fact I will just copy in exactly the price quotes State Farm gave me for the possible Deductible changes – like I said currently I have a ,000 deductible, and my premium is 2 a year:

00 DEDUCTIBLE WOULD BE APPROXIMATELY 422.00
1% DEDUCTIBLE WOULD BE APPROXIMATELY 426.00
2% DEDUCTIBLE WOULD BE APPROXIMATELY 388.00
3% DEDUCTIBLE WOULD BE APPROXIMATELY 362.00
Second question on :

Currently my coverage B Personal Property is at 3,625. I wanted to lower this coverage and see how much I’d save. But my agent said I can’t lower it, because it is an extension of my Dwelling coverage amount (75% of Dwelling coverage). Is that normal? So the only way I can lower my "Personal Property" coverage is to ALSO lower my Dwelling coverage amount on the house itself? Doesn’t make sense to me …..
MB – you are GOOD, you… (robert de niro in analyze this?) I just checked w/ agent, thats Exactly what happened, there is a rate increase for THIS year, and the computer spit out the new higher prices since my policy renews in July 2010. Good call. But I am still wondering, is it cheaper (lower premium price) to go with one of the Percentage deductibles versus the k or k fixed deductibles?

 

  • mbrcatz 1:07 am on April 26, 2010

    It should go down.

    But a flat dollar deductible is DIFFERENT from a percentage deductible.

    Usually, the percentage deductible applies ONLY to wind (hurricane) damage, in certain areas. Like Texas and Florida.

    BUT, I’m wondering if maybe there’s been a rate increase since your policy renewed – in which case, any NEW quote would include the rate increase, and your current $1,000 deductible is based on the OLD rates.

    Ask your agent why it goes up. Because that doesn’t make sense. Something is off.

    **Yes. Standard homeowners policies base the part C coverage as a percentage of the part A coverage. You can INCREASE it, but you can’t lower it. Kinda like, when you go to a restaurant, and they give you bread. If you don’t take the bread, it doesn’t lower the cost of your meal.**