| idiotsavantfarmer - 8/31/2024 14:07
Insurance looks to be spiking another 20 % on my property insurance. One option that was put forward was to go with a $5000 deductible. and save $4000 a year. I am thinking, why not also just delete coverage on everything not worth $5000 or more. Maybe even go to $25000 or $50000. Anyone have any experience with companies writing high deductible policies and how much you actually save? Local agent says I have to insure everything....I dont think that is correct.
Another option is to just insure the items valued at $50000 or more, and self insure the rest.
Any ideas on companies that work this way, with uber low premiums for catastrophic type events?
For outbuildings, you certainly don't have to insure structures that you do not care to be insured. When it comes to machinery, you can run a blanket, which covers all machinery. A blanket, depending on the carrier, needs to be within 80% of the total value of your machinery that you own. If it is less than that, you could be subject to a co-insurance penalty, as someone mentioned below. You can avoid that by scheduling each piece of machinery that you want insured, instead of using the blanket, but they rate per $1,000 is usually quite a bit higher. Running as a blanket also allows you to be covered with the changing farm equipment values. We had a customer fire on an older JD 4wd a couple years ago when the used market was hot. He got paid 120% of what he had it shown for on his "blanket", because of how blanket insurance works.
As an agency, we try to get the value at 100%, instead of 80%, to allow for the market fluctuations. We ask that they be reviewed annually by our insureds, so they can adjust values as they deem fit.
And yes, rates are still increasing, and with the weather we've had again this year in Iowa, I expect to see 15-25% rate increases going into 2025 year renewals. |
Dealing with Property Insurance Hikes
