Insurance

My hair starts levitating at the mere mention of the word insurance. While health insurance is hands down the worth thing to read and to deal with, homeowners, auto, and umbrella policies are no picnic either. But it’s nearly June, our homeowners and auto policies expire/renew June 30/July 1, so it’s time for me to actually read what is changing and how much our policies are increasing.

This year, both our home and auto policies decreased slightly, the home by a whopping $2 and the auto by $17. Then I called to ensure they knew my 2013 Rav4 has is owned free and clear and has no lien holder and that the mileage on it and M’s 2007 CRV have flip-flopped. The Rav commutes with me and takes me to lunch about 20 miles per weekday, whereas the CRV gets around and goes everywhere else during the week and always on weekends. Those changes resulted in an additional $107 premium reduction. Woo hoo!

Homeowners – this one was trickier. I was concerned the values were a little low, that if (heaven forbid!) our home burned to the ground it would take more than what they would be providing to rebuild it. But we went over the values, talked about updates and changes since our initial purchase, and I found our updating has added about $25,000 in replacement value and increased our premium by $34 per year. Then we got onto the topic of earthquake and flood insurance. I live in northern California and not in flood zone, but there are earthquakes here. Not routinely in my slice of the state and never bad enough to do much other than jiggle lightweight items, but still. M has pushed for earthquake insurance each year, being the worried and paranoid about natural disasters sort of guy he is, so this year I gave in to his concerns and added it for $171 per year, but with the saving on the car insurance, our net increase in all policies is $98 per year.

Still, I wonder if I am doing the right thing. On the one hand it seems unlikely we will ever be impacted by an earthquake, but on the other hand I am quite certain Japan was not expecting to be crippled by that tsunami either. In this case the $171 per year buys M real peace of mind about our home, so it’s worth it. I suppose I mostly dislike planning for and therefore thinking about all the natural disasters that could strike at any moment.

Once they update my account statement and I pay it next month we should be done with that for another year. Unless I’m inviting trouble by overthinking it, but at least we are well insured.

4 thoughts on “Insurance

  1. I would personally rather be over insured and never need it than under insured and up a creek without a paddle. It’s worth the peace of mind for me!

    My homeowners sent me a survey this year with some questions about my house. It included the age of my roof. They had my roof listed as being put in 1995. Ummm… they have paid to replace my roof twice for hail damage in the past 11 years! Duh!

    • And here I thought mine was bad when they STILL have only 1 bathroom (we have 2) and slab foundation (we are actually a raised foundation). I emailed her back with these changes. Every year we go through this same process.

    • Thanks so much! I pay our premiums annually because this is one of those things I dislike dealing with. Hopefully we will have yet another incident-free year, and it will be next May/June before I have to think about our policies again.

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