Your opinion on using home insurance "frivolously"

[TysonLPrice]

I had a sales team of two that was canvasing the neighborhood pushing "Insurance Paid" repairing roofs. My first response was to say I don't remember any significant storms in the last few years. They mentioned two recent ones but I don't think me roof was particularly damaged. I think they would give me an assessment for repairing the roof that I could submit to the insurance company and I think they would probably pay.

My gut feeling is that is dishonest and don't do it. The roof is over twenty years old but my insurance is replacement value and I'm pretty sure I could get a new roof.

So pros:

1. I pay into it and if it is damaged use it.
2. They are ripping people off so why not get even.
3. It is probably weather damaged but from various storms, not just one.
4. Everyone else would do it.

All flimsy to me.

Cons:

1. I feel in my heart it is dishonest.
2. The company pushing it might be known for this and the insurance would recognize I took part in it.

As I keyed this I decided I won't file a claim. I'm "morally flexible", , but I still feel OK about myself as a person generally, I wouldn't feel good about doing it.

Any thoughts?

[Shaggy Hiker]

People wandering your neighborhood pushing insurance replacements? That sounds like a scam to me. If they want to get you to file when you don't feel right about it, why would you expect them to do a good job repairing the roof?

In other words, if their business model involves scamming the insurance, why wouldn't their business model also involve scamming you?

[dday9]

I worked for Allstate from 2011 until 2019 and from 2015 through 2019 I owned the agency.

I can tell you first hand that this does happen and sometimes individuals are caught and charged. One thing is for certain is that the nerds who work as claims actuaries always win in the end.

When I was working during that time, we were paying the piper for stuff that went on 10-20 years before through higher premiums. Our case was a little different because we couldn't write home insurance after 2005 and so what a couple of agents did in the immediate aftermath of shutting down that line of business is that they'd write a dwelling only policy through Louisiana Citizens and then write a corresponding renters policy through Allstate (which we could write), then selling it to the insureds (for dirty cheap) as protection for their contents and liability. Sure enough, claims started pouring in and Allstate was on the hook. The insured got the payout but then the policy dropped (because homeowners cannot have renters insurance), the agents were fired by Allstate but never prosecuted so they just opened up independent agencies, and then over the next however many years the rates on home policies that we could write in the northern parishes got jacked up to make up for the bad policies written years before.

That's what I mean by the actuaries always win.

[techgnome]

SC checking in... yeah, we get those around here after every major hurricane and TS that rolls through here... so everything Wednesday it seems... We did get our roof replaced - complete tear off and new underlayment (including replacing damaged plywood) insurance paid most of it - we opted for some higher quality tiles than standard. But we didn't go through someone wandering through the neighborhood. We called around, got estimates, recommendations, and picked the one that we felt offered us hte best deal - not necessarily the cheapest, but wasn't the top either... Even though it hadn't been damaged by a single storm, it had been damaged by a number of storms over multiple years (a tile here, a tile there, it adds up, even when you do spot replacements) and that's why the insurance company paid for it - because it's cheaper in the long run to replace the roof than to continue to do annual spot repairs. And our roof was only 14 years old at the time. It's been 2-3 years now, 4-5 hurricanes, and a dozen tropical storms, and not a singe shingle has moved or been damaged.

So getting the insurance to p[ay for a new roof isn't necessarily a scam... depending on the construction and age, they may deem is in their (and subsequently yours) benefit to pay for the new roof.


-tg

[Steve R Jones]

Florida accounts for only 9 percent of the country’s home insurance claims but 79 percent of its home insurance lawsuits, many of them fraudulent.

Because of the fraudulent lawsuits and the high overall claim risk in Florida, insurance companies have faced multiple years with net underwriting losses over $1 billion.

Florida has lost some form of home coverage from over 30 insurance providers in the past few years.


The average cost of homeowners insurance in Florida in 2024 is $8,770. This figure surpasses the national average of $2,423, illustrating the higher insurance costs Floridians may face. Flood insurance is another couple grand.



In theory, the Governor is working on this.... And it's now much harder to file suit against an insurance company.

[techgnome]

I'll be so glad when I move and don't need to deal with hurricane or flood insurance...

-tg

[wes4dbt]

The average cost of homeowners insurance in Florida in 2024 is $8,770.

That's insane. $700+ a month for home owners insurance. Something is terribly wrong.

[OptionBase1]

I had a sales team of two that was canvasing the neighborhood pushing "Insurance Paid" repairing roofs. My first response was to say I don't remember any significant storms in the last few years. They mentioned two recent ones but I don't think me roof was particularly damaged. I think they would give me an assessment for repairing the roof that I could submit to the insurance company and I think they would probably pay.

My gut feeling is that is dishonest and don't do it. The roof is over twenty years old but my insurance is replacement value and I'm pretty sure I could get a new roof.

So pros:

1. I pay into it and if it is damaged use it.
2. They are ripping people off so why not get even.
3. It is probably weather damaged but from various storms, not just one.
4. Everyone else would do it.

All flimsy to me.

Cons:

1. I feel in my heart it is dishonest.
2. The company pushing it might be known for this and the insurance would recognize I took part in it.

As I keyed this I decided I won't file a claim. I'm "morally flexible", , but I still feel OK about myself as a person generally, I wouldn't feel good about doing it.

Any thoughts?

Scam.

On an unrelated note, if a "wallet inspector" ever comes to your door, they are completely legit.

[Shaggy Hiker]

That's insane. $700+ a month for home owners insurance. Something is terribly wrong.

Yeah, it's called Florida.

[coothead]

Any thoughts?

I treat insurance as just another form of gambling
and, as such, simply avoid both like the plague.

Of course I must point out that I lead a very simple
life and have absolutely no properties whatsoever
of any value.

I do understand that this post will be of no help to
the O.P. but as the

XML, HTML, Javascript, Web and-CSS forum

has dried up, I had this uncontrolable urge to make
a post somewhere.
Of course this may also be considered as "frivolous".

[wes4dbt]

(because homeowners cannot have renters insurance)

This has been a problem for me. I have a condo and the structure insurance is part of the monthly HOA fees. I tried to get renters insurance to cover my property for was told they couldn't sell it to me. So, I got no insurance.

I treat insurance as just another form of gambling

Sort of reverse gambling. You really don't want to win.

[dday9]

Louisiana has condo specific insurance that falls under the ISO form HO-6. Now finding a carrier who actually offers it is a separate issue.

Property insurance varies state to state but most follow some form of the ISO model.

FYI - My homeowners policy for a $5000 all other peril deductible and a 5% wind and hail deductible is just shy of $6000 a month. Flood insurance is another 1,200. Considering I only paid $110k for my house and it’s paid off, I don’t carry the wind and hail portion or the flood and only pay about $1000 a year. That works 9 times out of 10, but Hurricane Ida 3 years ago was that 1 out of 10

[Steve R Jones]

That's insane. $700+ a month for home owners insurance. Something is terribly wrong.

And that's not counting flood insurance.... But the home value is in the 500k range and in theory they can afford it.... They say it's the Cost of Material and Labor is why the insurance is so high.

I'll be so glad when I move and don't need to deal with hurricane or flood insurance...

-tg

BUTTTTTTT.....where ya going to go? Now a days it seems that each state has it's own set of potential "natural" disasters.

[Steve R Jones]

Hey dday9 - check out this "new" issue that's just recently popped up in Florida and possible other places.

Real nice and expensive home files 100k claim and collects.... Does just enough repair to the house to sell it - pockets the balance of the insurance claim.

Next owner files a very similar claim from new storm. Claim gets denied.... Even the serial number on the kitchen appliances matches so it's known that the repairs weren't done etc.... new owners looses big time... even the darn money on the insurance premiums are down the drain.

In Texas, the old owners would go to prison for not telling the truth. Even stupid FEMA is part of this issues.... They won't share information with the new owners due to privacy concerns. Again, in theory they'll get this fixed for other people.

[wes4dbt]

But the home value is in the 500k range and in theory they can afford it.... They say it's the Cost of Material and Labor is why the insurance is so high.

That's a pretty weak justification. My daughters house is probably in the 400K range and pays @ $1k a year. I doubt that the cost of material and labor is cheaper here in CA.

[Steve R Jones]

That's a pretty weak justification. My daughters house is probably in the 400K range and pays @ $1k a year. I doubt that the cost of material and labor is cheaper here in CA.

Does she live in an area prone to Forest Fires - Earthquakes - Hurricanes? Have to also consider risk factors...

[wes4dbt]

Does she live in an area prone to Forest Fires - Earthquakes - Hurricanes? Have to also consider risk factors...

That sounds like a terrible place to live. lol

Those things make a more reasonable justification, not materials and labor.

To be honest, I don't see the what Florida has to offer for people to be willing to pay $8,700 a year in home owner insurance. Also don't see how that's affordable for the average home owner. but it must be, there's lots of people there.

[TysonLPrice]

Does she live in an area prone to Forest Fires - Earthquakes - Hurricanes? Have to also consider risk factors...

Maybe California:

California's four seasons are fire, flood, mud and drought.

[dday9]

California's four seasons are actually: fire, fire, fire, and fire.

[wes4dbt]

Maybe California:

California's four seasons are fire, flood, mud and drought.

CA is a big long state so it does have all of those plus earthquakes, depending on where you live. Where I live, drought is our only worry.

[Shaggy Hiker]

California's four seasons are actually: fire, fire, fire, and fire.

Chicago had Earth, Wind, and Fire. It's funky, but there's no insurance covering that.

[TysonLPrice]

This thread has me rethinking my putting so much money into helping that Nigerian Prince...

[cuddlymarket]

Wrong!!!

[Shaggy Hiker]

That's right, you SHOULD be helping that Nigerian prince.

[TysonLPrice]

Well...he seems sincere and promised to reward me with a "princely" sum

[TysonLPrice]

Just closed the door on another offer for an inspection. It makes me wonder if they know homes are damaged in this area from recent storms and are canvasing because of that. I can look myself. If I did anything I would do it through my insurance agency honestly.

[Shaggy Hiker]

In the southwest, there are some massively severe thunderstorms that can deliver softball size hail to narrow areas. There are also mobile windshield repair trucks that follow those storms. I don't know that they are doing anything shady, they just know they'll have a hot market. You may be seeing the same...with a bit shadier operators.

[TysonLPrice]

In the southwest, there are some massively severe thunderstorms that can deliver softball size hail to narrow areas. There are also mobile windshield repair trucks that follow those storms. I don't know that they are doing anything shady, they just know they'll have a hot market. You may be seeing the same...with a bit shadier operators.

Likewise with hurricanes, there is all kinds of work and people come from all over the country and show up. One scam is to collect deposits and then just disappear.

[abhijit]

I had a sales team of two that was canvasing the neighborhood pushing "Insurance Paid" repairing roofs. My first response was to say I don't remember any significant storms in the last few years. They mentioned two recent ones but I don't think me roof was particularly damaged. I think they would give me an assessment for repairing the roof that I could submit to the insurance company and I think they would probably pay.

My gut feeling is that is dishonest and don't do it. The roof is over twenty years old but my insurance is replacement value and I'm pretty sure I could get a new roof.

So pros:

1. I pay into it and if it is damaged use it.
2. They are ripping people off so why not get even.
3. It is probably weather damaged but from various storms, not just one.
4. Everyone else would do it.

All flimsy to me.

Cons:

1. I feel in my heart it is dishonest.
2. The company pushing it might be known for this and the insurance would recognize I took part in it.

As I keyed this I decided I won't file a claim. I'm "morally flexible", , but I still feel OK about myself as a person generally, I wouldn't feel good about doing it.

Any thoughts?

A distant cousin of mine did this in North Carolina. She got a new roof and about 3200 dollars in spare change. It is a bit unethical, but I am sure it is NOT ILLEGAL.