Insurance Opinions/ Experiences

[Jennifer Burgener]

Insurance feels like a scam. I've been buying properties for 10 years and never had a total loss. We did have a major loss (meth house blew up), but we just paid out of pocket because I didn't want the premium changes or issues getting new policies.

I'm spending over $30,000 a year on insurance and it doesn't feel worth it because I assume if I had a total loss (fairly unlikely) the insurance company would do everything they could to get out of it. At this point I've spent way more than if I had a total loss on insurance. If I did file a claim it would make it harder to then get new policies and my premiums would go up.

Opinions and experiences?

[Tony Wilcox]

Jennifer, I understand it can feel this way sometimes, but that is not the case in my experience. I have had numerous clients with total losses and the carrier has paid out the full amount to rebuild the home within 30 days. Can a claim impact future rates and approval, yes, but what is the point of acquiring an insurance policy if you aren't going to use it? If the property is free and clear and you don't use it on a total loss what was the point of even getting the policy? Carriers aren't typically looking for reasons to "get out" of paying a claim, but they will make sure it aligns with the policy coverage.