I’ve had the same ins. co for 20 + years, and, although there have been small increases in the amount my house is insured for, I feel that my house is underinsured for my area. During the last 10 years, I have called AAA several times and asked to increase my coverage because the cost of repairs, rebuilding, etc. are so expensive in my area. AAA just insists that I have enough coverage to cover rebuilding costs. I’ve told local builders/remodelers my coverage amount and they just laugh. I’ve had other ins. co.s give me quotes, and they always give me a more accurate replacement cost. So, why don’t I buy theirs? Well, after so many years with AAA, I now have earned discounts on my premium. To get discounts with a new ins. co., I’d have to start all over again.
So, why does AAA want me to be underinsured? I’m willing to pay more for my insurance, so what’s their problem?
AzOasis8
March 16, 2010 at 1:10 pm
Change your policy to one that covers not only your house, but the items inside you house…. that might help.
tropicalvacationrentals
March 16, 2010 at 1:26 pm
I would ask to speak to a manager. This is strange, they’d get more premium $ from you.
dcgirl
March 16, 2010 at 1:37 pm
You might need to have your home re-valued, not in a tax assessment but with the same kind of market assessment that a potential buyer would get if the home were on the market. Insuring the home for more than it is worth is a major red flag; over-insure the home, burn it down, and collect big time! So the insurance company is just trying to protect themselves against getting scammed. But if you can get an independant assessment to show how much more your home is worth compared to their estimate, it would go a long way towards getting your coverage raised.