What does this mean?

Michael W. Smith · #1 03/05/12, 02:42 PM

Got a call from some guy several weeks ago saying he needed to come to our farm and do an inspection update for the insurance company.

Before I called him back, I called our insurance company to make sure this was indeed the case. "Yes", they said, "with your insurance renewal coming due soon, this insurance company does get updates before renewing."

This sends a red flag up for me. It sounds like the insurance company is looking for a reason to raise the rates.

We have lived at this location for 21 years. Since it's a farm, we had trouble getting house insurance because many insurance companies don't handle farm insurance. While it is a "farm" - 128 acre area with house, barn, and several outbuidlings, and I do have 20 chickens and 3 goats, the only farming done (other than the animals) is leasing the crop land out to a local farmer who plants and harvests grain crops.

So, I made arrangements for this guy to come, and this morning he was there. He measured the house, measured the porches, measured the barn and took pictures of all buildings plus the electrical box in the house and the fuse box in the barn. There were all kinds of questions that needed answered - "Do you have a wood or coal burning device? Do you have a trampoline, swimming pool, or hot tub? Do you have dogs? Do you have ATV's? When was the house and barn built? What are they built of? Does the house have a basement?", etc.

Like I said, we've had this policy for 21 years and have not filed one single claim. I can see how some of the questions would need answered for any changes. After 20 years, the number of animals I have might change, but the dimensions of the house and barn? They took that information 21 years ago when the policy was first written! I wasn't aware buildings change sizes, or when they were built, or what they are built of!

I guess this guy turns this information over to the insurance company actuaries and I can get a copy of the report in several weeks from my insurance agent.

I almost feel like I'm being paranoid - that the insurance company is just looking for something to either raise the rates or decide not to renew at all. Or am I just worrying over nothing and the insurance company is just verifying their information and updating pictures?

What do you think?

Alice In TX/MO · #2 03/05/12, 02:49 PM

I think they were checking to see if you had added on, let the place deteriorate, or were cooking meth. Not a problem.

jwal10 · #3 03/05/12, 02:52 PM

I think they are just updating info, but....Seems like insurance co's are looking for ways out. You could have built on or installed a wood stove. On your side, if you added smoke detectors, alarm systems or a fire resistant roof, you may get deductions depending on where you live....James

ninny · #4 03/05/12, 02:56 PM

You can pretty much bet that your premiums will be going up. They don't do that as a courtesy. Insurance co. is looking for any excuse to either cancel or raise rates. Never heard of them lowering rates unless a firehouse moved in next door to you...

.

oakridgewi · #5 03/05/12, 03:12 PM

Yup, my insurance co sent a guy out for the same thing..........seems he took a picture of our sawmill.

Didn't take very long and we got a notice from the ins co,(been with them about 20 years and no claim also), canceling our policy. They DO NOT insure sawmills!

Ended up having to "exempt" the mill to keep the policy.

Karenrbw · #6 03/05/12, 03:13 PM

They will cancel if you have a trampoline, pool, Doberman or other "dangerous breed", ATV, etc. They may also cancel if you have a wood burning stove, fireplace, etc. Always looking for an excuse.

Harry Chickpea · #7 03/05/12, 03:13 PM

Ever since the last major round of hurricanes in Florida, the attitudes of insurance companies have been shifting. There is a LOT more cherry picking and a lot more denial of coverage.

You may have paid premiums faithfully for years, but that does not make them your friend or give them any reason to feel loyalty towards you. As far as a company is concerned, once the period you paid a premium on is over, you are a stranger.

People who have mortgages are usually REQUIRED to have insurance. The insurance companies have as much as realized that anyone in such a situation is in no position to bargain about rates or coverage.

7thswan · #8 03/05/12, 03:47 PM

I wouldn't be surprised if they cancel you. last one we had, wanted us to get rid of our huge barn, tear it down they said, I laughed. One before that- didn't mind the wood stove-but that confounded wood laying around waiting to be split-was a "tripping hazard". The log splitter,Bull, 3 rottweilers, tractor,skid loader,stream,pond ect-no problem-But the extension cord to the stock tank heater-hazard, extreme hazard I tell ya.

Pamela · #9 03/05/12, 03:58 PM

This happened to us last fall also. Said they needed to update pictures etc.... It had been 15 years since they had come out. I asked for them to call ahead and not walk into the fenced yard because the dogs might be out. Boy, was that a mistake! I got the third degree ! I told them it was for my dogs protection not theirs. I didn't want them surprised or let out of the yard. The guy who came out actually thanked me for the advance notice. Our insurance rates did not go up, but I stressed about it alot !

ninny · #10 03/05/12, 04:04 PM

Look at it like this. They have your money from all those years that you haven't filed a claim. They're money ahead and the likelihood of you having a claim at sometime is probably being factored in, so, if they cancel you now they keep your money and have no loss.

.

Ozarks Tom · #11 03/05/12, 04:18 PM

I wouldn't worry about it. Every company needs up to date records, and know what exactly they're insuring. If you had a major safety problem, he would have told you. Those guys are sometimes known as "loss prevention specialists".

As to your premiums being pure profit to the insurance company, most of your premiums paid for losses elsewhere, just like someone else's premiums would have helped pay if your place had a claim. That's while it's called a risk pool.

goatlady · #12 03/05/12, 05:05 PM

Most interesting topic. I have had the same insurance company for 25+ years in 2 different states and never once in all those years including the initial applications did I ever have someone inspect the property! Had my first and only claim last year due to a lightening strike on the well and never even had an adjuster come out, just had the well man chat on the phone with the guy, sent faxes of the bills and had a check in 7 days.

Tricky Grama · #13 03/05/12, 05:12 PM

Quote:

Originally Posted by ninny

You can pretty much bet that your premiums will be going up. They don't do that as a courtesy. Insurance co. is looking for any excuse to either cancel or raise rates. Never heard of them lowering rates unless a firehouse moved in next door to you...

.

Yup-happened w/our rental house, in a rural area. Rates went up.

Jokarva · #14 03/05/12, 05:20 PM

When we moved to this property it had been a rental for 6 yrs and when we (owners) occupied it they said they weren't writing new policies in this area and cancelled us. So we went to an independent agent here and she got a policy written with the same company...so much for no new policies. They sent out someone to inspect and take pictures...but when all was said and done our premium actually went down (insert 'die of shock smiley' here).

So it isn't always a bad thing.

haypoint · #15 03/05/12, 06:14 PM

My farmhouse, built in 1933, insured by the same company for 40 years, owned by me for 25 years and never a claim. But just before renewal time, they told me I need a secondary way to heat the house. A wood fired boiler and a wood fired cook stove, wasn't enough. The thoughts of a propane furnace and the tank out back or a bunch of electrical baseboards didn't sit well, so I found an insurance company that didn't require a second heat source.

plowjockey · #16 03/05/12, 06:25 PM

Get used to it.

Insurance companies are already running businesses, they are already running homes - provided that you want/need coverage from them.

In the old days they mostly just paid up on a claim and then maybe upped your rate a bit.

Now, with multi thousand or multi million dollar claim settlements the norm, they want to manage risk as much as possible, which since they mostly band together, is a lot.

Soon (if not already) if you just have to have a Pit bull, or refuse to fence your swimming pool, no one will insure you.

nebula5 · #17 03/05/12, 07:08 PM

We had our insurance company come out about 4 years ago, do the measurements, poke around the outside of our house. They did send a letter with recommendations for upgrades (painting or siding the exterior- which we finally did last year.) Our insurance goes up a small amount every year, maybe $15, as the replacement value of our house goes up. No difference the year they did the inspection.

MO_cows · #18 03/05/12, 07:33 PM

Ours has never made an appointment, they do a drive-by and take pictures.

canecutter · #19 03/05/12, 09:49 PM

I doubt you are being paranoid. I think they are looking to raise rates to reduce their losses. Things like large dogs, trampolines, steps without a hand rail.
My agent was good enough to ask if I had some of those things. So on the day of the visit some of those things were on vacation..

http://www.strugglinghomestead.blogspot.com/

bluetick · #20 03/05/12, 10:02 PM

I went through an insurance "inspection" at my previous home, and don't believe the rate went up. One of the recommendations was to paint the small barn and it needed it!

He asked if I had dogs while in the background the three German shepherds in the house were barking their heads off! It obviously didn't matter, and this was State Farm.