Why would you buy something to protect your home?

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Glacier
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Why would you buy something to protect your home?

Post by Glacier »

I love installing smart devices to protect my home and property and to save energy, water, and money, but on the other hand, the way insurance works, you are better served getting flooded out than stopping a flood.

I was really glad with my first flood when he restoration company was so incompetent that they let the flood escape beyond the first room and into the rest of the basement (I suspect they let it happen so they make more money with a larger claim, but that's another matter).

Sure, I could have stopped the flood by having one of these, but the way insurance works, they give zero fox about saving you money because they seem to love shoveling money out the door like it's going out of style when you make a claim, and then they don't even increase your rates for next year. I know from personal experience. Spending $500 to save a flood would have set me back $500, but not having these means I got all new flooring for free. The $1000 deductible is typically waived if your claim is over $10,000, and given how restoration companies charge twice what they should for "emergency repairs" that take 3 months to get done anyway, it's almost impossible not to spend $10,000 even for a minor claim.

My last claim was for $60,000, $50,000 of which was outside repairs (new driveway and waterline), and I told insurance they could save me 10 to 20 grand if they just cut me a cheque so I could hire my own contractors, but they refused because it was over a set amount.

Anyway, the insurance company will make your place better than it was before for free, so what's the incentive for preventative actions? And by free, I mean, the people who put detection devices in so they don't get floods also pay for the floods of people who don't through higher insurance rates.
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TylerM4
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Re: Why would you buy something to protect your home?

Post by TylerM4 »

You raise an interesting point. One I tend to agree with.

I've never actually filed a home insurance claim despite owning insurance for nearly 20 years now. Was not aware that the deductible is often waived. That really changes things for how I've been thinking of this. If you have a new home or a recently renovated home - you're not really going to come out ahead. It's a bunch of hassle just to get your home back to as nice a it was before.

Otherwise - I think it comes down to:
- Protecting possessions that aren't easily replaced with money. EG - That old laptop with 5 years of family pictures sitting on it.
- Saving the cost of deductible (potentially)
- Saving the hassle of having to facilitate repairs.
- Avoiding the cost of increased insurance premiums. I receive a discount because I've been claim free for 10 years or more. Discount started with being claim free for 5 years.
Boosted632
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Re: Why would you buy something to protect your home?

Post by Boosted632 »

Glacier wrote:I love installing smart devices to protect my home and property and to save energy, water, and money, but on the other hand, the way insurance works, you are better served getting flooded out than stopping a flood.

I was really glad with my first flood when he restoration company was so incompetent that they let the flood escape beyond the first room and into the rest of the basement (I suspect they let it happen so they make more money with a larger claim, but that's another matter).

Sure, I could have stopped the flood by having one of these, but the way insurance works, they give zero fox about saving you money because they seem to love shoveling money out the door like it's going out of style when you make a claim, and then they don't even increase your rates for next year. I know from personal experience. Spending $500 to save a flood would have set me back $500, but not having these means I got all new flooring for free. The $1000 deductible is typically waived if your claim is over $10,000, and given how restoration companies charge twice what they should for "emergency repairs" that take 3 months to get done anyway, it's almost impossible not to spend $10,000 even for a minor claim.

My last claim was for $60,000, $50,000 of which was outside repairs (new driveway and waterline), and I told insurance they could save me 10 to 20 grand if they just cut me a cheque so I could hire my own contractors, but they refused because it was over a set amount.

Anyway, the insurance company will make your place better than it was before for free, so what's the incentive for preventative actions? And by free, I mean, the people who put detection devices in so they don't get floods also pay for the floods of people who don't through higher insurance rates.
Im sure you would quit thinking that way when you start getting denied insurance because you're to much of a risk, i wont even get into the pride of ownership and having a conscience end of things. But hey if you feel you're better off to let that water line leak untill it fails so you get you're "free" reno you go right ahead, im sure it will catch up with ya one day
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Bsuds
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Re: Why would you buy something to protect your home?

Post by Bsuds »

I would rather spend a few bucks on prevention than go through the hassles of repairs.

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Boosted632
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Re: Why would you buy something to protect your home?

Post by Boosted632 »

Bsuds wrote:I would rather spend a few bucks on prevention than go through the hassles of repairs.

Bin there dun that
Exactly right, to me not spending 500$ to protect your most expensive investment is flat out stupid, unless of course you enjoy living out of a suitcase in a hotel room for 6 months or more while getting that "free" reno done.
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Glacier
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Re: Why would you buy something to protect your home?

Post by Glacier »

Boosted632 wrote: Im sure you would quit thinking that way when you start getting denied insurance because you're to much of a risk, i wont even get into the pride of ownership and having a conscience end of things. But hey if you feel you're better off to let that water line leak untill it fails so you get you're "free" reno you go right ahead, im sure it will catch up with ya one day
WHOOOOSH.

Personally, I believe in preventative maintenance, but my point is this: they system is rigged in favour of cheaters. Having gone through three insurance claims that caused $150,000 in damages combined (according to the restoration company) and also having two other floods that I fixed myself despite the materials alone being well over $1000 in one of the cases, I have seen first hand how it works, and I find it quite disturbing.

BTW, Bsuds if you're reading this, my polyb lines failed BEFORE coming into my house three feakin' times, so you could spend 10 thousand to replace your lines and still get a flood. Apparently my water is quite hard and corrosive, and it eats through copper fittings. With the last flood, it broke somewhere under my garage or under the driveway, but it was only an extra 1000 bucks to put in an entire new line that wasn't polyb (which I paid out of pocket) than to find the problem and repair it , so that's what we did.

Oh, and the concrete guys were completely useless. They did not dowel in the rebar into the garage slab like they were supposed to. They did not put any moisture on the driveway when packing the gravel, they made my driveway 2 inches narrower (cutting corners so they didn't have to landscape), they poured concrete down by drainpipe, and they sloped my driveway wrong so that ice collects on the sidewalk. In this sense, I sure as heck wish that flood didn't happen. Also, when the guy showed up to remove the forms from the concrete pour, he had to knock on my door and ask for a screw driver bit because he didn't have any. Talk about unprofessional!

Anyway, back to my initial point, you will never have a problem getting insurance. When you have a mortgage, you must have it, and no one will deny you coverage, at least not everyone. After three claims my cost is the same as my neighbours and friends. Actually, it's lower for me because I use TD which gives better rates it seems.

There should be incentive to NOT make claims. Waiving the deductible is just stupid if you ask me. Two different companies and they both did it. For the first flood, they gave me a buy-out for the flooring at something like 75% of what they would pay the restoration company to do it, and I was able to hire people and install far nicer flooring than what was there originally, and still have money left over. In that flood I came out ahead (unlike the last one).

Insurance companies should be giving you discounts for defectors that will save your house from flooding. Also, the deductible should be more like $5000. Also, they never actually check up on the situation, or at least not very well. With the last flood, the adjuster never even stopped by. It would be very easy to do fraud if you wanted to and get away with it. At least the first time. The restoration companies don't care because they want to make the claim as large and as expensive as possible. I'm actually shocked at how little checking there is from the insurance company.
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Boosted632
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Re: Why would you buy something to protect your home?

Post by Boosted632 »

I find it pretty funny that you believe you cant be denied insurance do you actually think the insurance company gives a flying *bleep* if the bank calls your mortgage because you cant get insurance ??? Do you think the bank cares if you cant get insurance they couldnt care less they will simply demand their money back, i actually know someone who has been denied insurance.it does happen they dont care about the financial issues it causes you.
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stuphoto
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Re: Why would you buy something to protect your home?

Post by stuphoto »

Glacier wrote:
Boosted632 wrote:
Oh, and the concrete guys were completely useless. They did not dowel in the rebar into the garage slab like they were supposed to. They did not put any moisture on the driveway when packing the gravel, they made my driveway 2 inches narrower (cutting corners so they didn't have to landscape), they poured concrete down by drainpipe, and they sloped my driveway wrong so that ice collects on the sidewalk. In this sense, I sure as heck wish that flood didn't happen. Also, when the guy showed up to remove the forms from the concrete pour, he had to knock on my door and ask for a screw driver bit because he didn't have any. Talk about unprofessional!
I'd be scared, the chances are it's a thinner pour than you can imagine. Some contractors love tapering it up towards the middle and you can't tell with the naked eye.
I would have also been tempted to take a sample from the drainpipe and have it tested.
There is different qualities of concrete and you would never know until testing or it starts flaking apart.
Randall T
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Re: Why would you buy something to protect your home?

Post by Randall T »

Some good points, but I think I'd rather spend a bit to prevent flooding and potential damage. Having been involved with some aspects of restorations over the years, I've seen enough flood damage to think I'd rather have my house burn to the ground instead. As long as no one got hurt, of course. Often severe water damage can never be fully mitigated. The results being like lipstick on a pig. Another thing to consider is resale and the disclosure of water issues, damage and possibly resulting repairs. Of course in today's market it probably wouldn't matter much.
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kelownman
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Re: Why would you buy something to protect your home?

Post by kelownman »

Glacier wrote: Sure, I could have stopped the flood by having one of these, but the way insurance works, they give zero fox about saving you money...
I recently had the sedna auto shut off valve installed. Once it was installed, I called my insurance agent, explained what I did, showed them the invoice and received $65 discount on my premium.
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Glacier
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Re: Why would you buy something to protect your home?

Post by Glacier »

kelownman wrote: I recently had the sedna auto shut off valve installed. Once it was installed, I called my insurance agent, explained what I did, showed them the invoice and received $65 discount on my premium.
That's a very good point... I should phone and find out.
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kelownman
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Re: Why would you buy something to protect your home?

Post by kelownman »

I should have mentioned, my insurance renewal was Feb 1 and I called Jan 28th :up:
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Glacier
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Re: Why would you buy something to protect your home?

Post by Glacier »

kelownman wrote:I should have mentioned, my insurance renewal was Feb 1 and I called Jan 28th :up:
Mine is up next month. Should I tell them about my meth lab I have up and running too?
"No one has the right to apologize for something they did not do, and no one has the right to accept an apology if the wrong was not done to them."
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