I Am Not A Farmer

In April I received a statement that forewarned me the yearly premium on my home’s insurance policy would come due in July. At first, I though it was a little premature to send me the “renewal certificate” but the bottom line figure as payment to cover the cost of repairs in the event of loss of property was something to be concerned about. It didn’t offer a monthly payment plan.

The only positive statement I can make is that the premium was but a few dollars more than the figure in 2007. My worst fear proved unwarranted; the 30% increase I had seen from 2006 to 2007 didn’t happen again. Thank you very much, Governor Crist, for keeping my rates from going down as you had promised; insurance companies not only reduced their risk by canceling policies along the coastlines of Florida but also kept the practice of profitability by being allowed to up my premium.

Information that had little effect on the premium included a coverage increase of $22.00 but there was also a rate change premium decrease of $35.00, which was good news of little importance. If not for a reduction in the assessment for Citizens Property Insurance losses by $80.52 I would have had an overall increase. How lucky can I get that this comes as a gift “due to an appropriation by the Florida Legislature”!

No one can predict what the assessment will be when the “big one” demolishes any portion of Florida. Last year it was 7.2% of the bill, now 2.5% (and 1% of my auto insurance). We’re still paying for the 2005 hurricane season; the next one may warrant a surcharge well into the next millennium.

So, I had to hawk the line-by-line charges to see what I’m actually paying for each item of coverage. Most of it was pretty straightforward but since the balance due was going to dampen my summer months, with or without what used to be seasonal rains, I contacted the agent for a little clarification.

There wasn’t much that could be done but to save what amounted to a few dollars, although I questioned the amount for personal property loss, which includes the belongings inside the home. She explained the figure was 75% of the dwelling coverage. She informed me it could be adjusted to 50% or as low as 25%. She had no immediate formula to give a savings amount but she would get back with me within a week; she had a few days off or otherwise it would have been a day – two at the most.

One bit of information she gave me of her own accord had to do with sinkhole coverage. I could cut the overall bill in half if I were to accept loss of use. This would mean that if there were cracks in the foundation but not of such a degree to condemn the structure, I would be on my own to avoid further deterioration. A tempting idea but much too risky for me but not so for the insurance company, actuaries make sure a profit is theirs to be had.

(I felt it a mute point to discuss the claim-free discount on the policy because without it the rate would increase by more than 25%! Heaven forbid I should need to actually make use of the policy!)

So now I await an email from Lisa on what minuscule savings I might realize with a reduction in person property coverage.

So now I await a quote from Hector, from another insurance company that is still accepting applications from Hernando County homeowners, to find out how they can assist me in keeping my home a safe, and less expensive, place to live.

Besides, who needs a company whose name suggests it specializes in farms? Perhaps I’ll go with one that boasts a triple-A rating?