Wind and hail

[porsche tech]

We just got this year’s premium for wind and hail insurance. $7600 for an 1850 square foot home! We have owned (and been paying for wind and hail ins) for 21 years and have never had damage or a claim. Flood insurance too with no claims. It’s one of the downsides of living near the Atlantic ocean. We’re thinking of upping the deductible. Any opinions on the wisdom of doing that? We have no mortgage so we don’t HAVE to have it but I’m not doing without it.

[Erakad]

Homeowner insurance has gone crazy. My home in the CO mountains jumped from about $4K to $9K, (For reference, in 2021 it was about $2500). With that insurance company we negotiated the cost down to $7K due to longevity and lack of claims. We contacted USAA and got a quote for $4.2K, which we took. At this time, it includes mitigation if a wildfire comes through. They say it's the price we pay for our mountain views (and of course, droughts and fire possibilities). I feel your pain!

[Baz]

I'm self-insured - have never had a claim nor have my premiums changed in 12 years now.

[porsche tech]

Raising the deductible is like self insuring to a degree…but I don’t want to go w/o it. Homeowner’s is fine (has gone up but not like wind and hail). My w/h is with USAA but through the South Carolina wind pool.

Careful Baz…NSB a few years ago…2023 I think.

[Zeke]

We are all paying for 10's of thousands of claims from the CA fires in the last years that have wiped out whole towns, NC flood and the like, and likely still suffering costs from some of the devastating hurricanes all the way back to Sandy and Katrina. The average homeowner has from no claims to very few.

But single largest item on the list of claims isn't total loss or extreme damage from fire and storms. It's water damage from plumbing. If there was a check list of things you could take out of the policy, if that coverage did not exist, I think the cost of premiums (why are they call premiums?) could be a lot less. Keep your plumbing in good shape and don't file claims. Well, yeah, it don't work like that, huh?

CA has already taken steps to relieve the flatlanders from the liabilities incurred by living in fire prone foothills and mountains. They've identified and segregated those properties and tagged them with huge policies and requirements to clear areas near homes from combustibles.

It would be kinda hard to do that with New Orleans and other coastal areas.

Hail damage is something I don't understand. I sure don't understand it with cars. There has to be ways to protect cars. Just leaving them out to get hail damage is irresponsible. Can't roofs be protected? I have no idea or knowledge. IDT hail could hurt my silicone coated built up flat roof. Maybe baseball size hail could, IDK.

[GH85Carrera]

For the $7,600 premium, a new roof would only cost three years or so to cover. Put that $7,600 into a good mutual fund, and add to it every year. In three years or so you will be ahead of the cost of that roof.

If the $7,600 is the total insurance bill, just raise your deductible and save the savings into a fund.

[Baz]

Originally Posted by porsche tech

Careful Baz…NSB a few years ago…2023 I think.

Erosion from the ocean. I am thankfully not ocean front.

[brp914]

Originally Posted by porsche tech

Raising the deductible is like self insuring to a degree…but I don’t want to go w/o it. Homeowner’s is fine (has gone up but not like wind and hail). My w/h is with USAA but through the South Carolina wind pool.

Careful Baz…NSB a few years ago…2023 I think.

Can this house be saved? Looks like it got knocked off its foundation.

[Zeke]

They can but no one would pay out insurance or loan on the construction. Post reconstruction financing might be an issue as well just like some companies do do branded auto titles. Same thing goes for insurance.

Sure, I'd do it, but the interior walls would have to be stripped, at least the outside and interior bearing walls to check any shear panels and framing fasteners. Of course it would require a pretty extensive in situ survey before lifting it up, leveling, moving back to where it needs to drop (if it's shifted) and also some foundation work may be required (new anchors and tie downs at the min). Being shingled I'd probably take most of those off as well.

IOW, unless it was a DIY project controlling labor costs closely by direct hire, meaning setting up a company if one is not already a contractor type and in business. The costs would approach building from scratch too soon. There would be no financial room to cover a lot of different sub's overhead and profit. The profit would have to remain in the house, meaning all work done at cost of labor and materials alone.

And there are the aforementioned potential post build problems. One other thing that comes to mind is construction inspections. How do you deal with inspecting all the wiring and plumbing, etc.? Everyone would be leery.

Out somewhere they don't have an overbearing AHJ, it would be much easier. There are such places in the US buy NSB is probably not one.

[Por_sha911]

Right after I increased the deductible on my plain old homeowners insurance I had roof damage and had to replace the roof. It cost me an extra $500 and I was mad at myself for saving 50 bucks and spending 500. Once we had the house paid off and were debt free, I increased deductibles in several areas because I could afford the deductible.

Think of it this way: how would you feel if you had the same unfortunate timing of needing a claim after deciding to be self insured?

[porsche tech]

When Matthew hit Hilton Head in 2016 (at high tide), the problem was wind knocking down thousands of trees…many falling on houses and opening them up to the major rain that fell. The roof was the least of people’s problems. I just had days and days of yard clean up with no damage to my house but I’m still not going to go without insurance but may raise the deductible to lower the rates a little.

[Por_sha911]

Wise choice.
When I said "need a claim" I was thinking house flooded or leveled...
It can't hurt to look at a deductible increase. My agent is a personal friend and has given me great advice (and help) many times. Also look at converting to an Umbrella policy?

[brp914]

Thanks for all that, Zeke. I wonder if the owner has equity and gumption to take on a project like that. It would be awesome to see on HGTV or such.

[Chocaholic]

Back to the OP's question. We have a house in Fairhope, AL, about a half mile off of Mobile Bay. HO insurance with wind and hail coverage is $12K per year. And for $12K per year, there is a $50k deductible. I made a decision to pass.

So, I pay under $2K/year for fire and theft coverage and self insure for W&H. My next door neighbor does the same...they've been there for 22 years with no issues. I've had mine for 3 years...so as of now have saved about $30k to use towards damage that may never occur.

To do this, you must own your home free and clear as your mortgage company will require full coverage. Insurance companies NEVER lose. Quite the opposite. If you'll sleep better at night after writing that check, then by all means, do it. I sleep better knowing I'm not donating (as much) to the insurance company's impressive P&L statement.

[ramonesfreak]

Last time I had hail damage about 8 years ago I was on the NYS Thruway Route 90 going about 65 when I hit a micro burst that turned my truck almost a full 90 degrees and pelted me with golf ball size hail. Nothing i could do to avoid it.

Since then, If I am home and get the warning…I have weather alert radios all over the place….then I throw a cover on the vehicle. If not home…..theres not much you can do unless you happen to be in a parking garage at work, or can safely stop under a bridge.. etc…

We are under a hail and tornado warning right now actually….and im too exhausted to go put the cover on my truck. Ug :-(

Originally Posted by Zeke

We are all paying for 10's of thousands of claims from the CA fires in the last years that have wiped out whole towns, NC flood and the like, and likely still suffering costs from some of the devastating hurricanes all the way back to Sandy and Katrina. The average homeowner has from no claims to very few.

But single largest item on the list of claims isn't total loss or extreme damage from fire and storms. It's water damage from plumbing. If there was a check list of things you could take out of the policy, if that coverage did not exist, I think the cost of premiums (why are they call premiums?) could be a lot less. Keep your plumbing in good shape and don't file claims. Well, yeah, it don't work like that, huh?

CA has already taken steps to relieve the flatlanders from the liabilities incurred by living in fire prone foothills and mountains. They've identified and segregated those properties and tagged them with huge policies and requirements to clear areas near homes from combustibles.

It would be kinda hard to do that with New Orleans and other coastal areas.

Hail damage is something I don't understand. I sure don't understand it with cars. There has to be ways to protect cars. Just leaving them out to get hail damage is irresponsible. Can't roofs be protected? I have no idea or knowledge. IDT hail could hurt my silicone coated built up flat roof. Maybe baseball size hail could, IDK.

[Por_sha911]

Originally Posted by ramonesfreak

Last time I had hail damage about 8 years ago I was on the NYS Thruway Route 90 going about 65 when I hit a micro burst that turned my truck almost a full 90 degrees and pelted me with golf ball size hail. Nothing i could do to avoid it.

Since then, If I am home and get the warning…I have weather alert radios all over the place….then I throw a cover on the vehicle. If not home…..theres not much you can do unless you happen to be in a parking garage at work, or can safely stop under a bridge.. etc…

We are under a hail and tornado warning right now actually….and im too exhausted to go put the cover on my truck. Ug :-(

Next time take the Taconic Parkway?

[ramonesfreak]

Originally Posted by Por_sha911

Next time take the Taconic Parkway?

was heading west from Albany back to Rochester so, no.

i used to drive about 4k per month for years and have seen some nasty weather including hail. i hate hail. the PDR guys love it. had my guy fixed my dents rather than put a claim in. told me he cut his teeth fixing hail damage at car dealer lots

tornado just spotted about 40 miles west of me. exciting night ahead.

[Por_sha911]

Originally Posted by ramonesfreak

was heading west from Albany back to Rochester so, no.

i used to drive about 4k per month for years and have seen some nasty weather including hail. i hate hail. the PDR guys love it. had my guy fixed my dents rather than put a claim in. told me he cut his teeth fixing hail damage at car dealer lots

tornado just spotted about 40 miles west of me. exciting night ahead.

Unless I was in a hurry, I loved driving the Taconic to and from L.I. to Albany (SUNYA). The Thruway was boring.

In all the years I drove there, I wish just once I had stopped just to see where Yazgur's farm is (not too far off of Exit 20 on the Thruway).