Tuesday, May 26, 2009
10 Things Your Home Insurer Won't Tell You
1. “We have our own caste system.”
Sam Mayer, a physician in suburban Chicago, had insured his home, car, and life with Metropolitan Life Insurance Company for 10 years without ever filing a single claim, until a damaged roof and a burglary led to two legitimate claims totaling $3,000. Mayer promptly installed a new home-security system. But instead of giving him a discount, the company dropped Mayer from its preferred coverage, citing his “claims history,” and instead offered him its standard carrier at a higher rate—even though his risk profile hadn’t really changed.
(“Homeowners insurers may sometimes offer a change in conditions of coverage of a consumer’s policy at renewal in order to continue to offer a policy to that individual whose risk profile has increased,” says a MetLife spokesperson. “This often occurs when a customer files more claims than average in a short period of time.”)
Indeed, almost all insurance firms slot their policies into different categories, based on a variety of factors, including your credit score and the location of your home. But even if your risk profile doesn’t change in any substantial way, you might still be shifted from a company’s preferred carrier to its more expensive counterpart...
SmartMoney: 10 Things Your Home Insurer Won't Tell You
Sam Mayer, a physician in suburban Chicago, had insured his home, car, and life with Metropolitan Life Insurance Company for 10 years without ever filing a single claim, until a damaged roof and a burglary led to two legitimate claims totaling $3,000. Mayer promptly installed a new home-security system. But instead of giving him a discount, the company dropped Mayer from its preferred coverage, citing his “claims history,” and instead offered him its standard carrier at a higher rate—even though his risk profile hadn’t really changed.
(“Homeowners insurers may sometimes offer a change in conditions of coverage of a consumer’s policy at renewal in order to continue to offer a policy to that individual whose risk profile has increased,” says a MetLife spokesperson. “This often occurs when a customer files more claims than average in a short period of time.”)
Indeed, almost all insurance firms slot their policies into different categories, based on a variety of factors, including your credit score and the location of your home. But even if your risk profile doesn’t change in any substantial way, you might still be shifted from a company’s preferred carrier to its more expensive counterpart...
SmartMoney: 10 Things Your Home Insurer Won't Tell You
Permalink posted by markw @ 4:55 AM 
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