Frequently Asked Questions
Below are some of our frequently asked questions. If you have any other
questions or concerns, please feel free to contact us.
- Why is my home insured for more than my tax appraisal.
- Do you calculate new rates for my policies every year?
- I have not had any claims so why did my renewal go up?
- Why didn't you call me about my rate increase before my renewal.
Why is my home insured for more than my tax appraisal.
This is a very common question. The answer is that the tax appraisal is a figure calculated from real estate values is a large area only for the purposes of charging for taxes. Usually a figure of 80% of the average real estate values is used to generate a reasonable tax base figure. The amount of insuranc on your homeowners represents the cost of construction of a new home. This calculation considers material and labor costs not real estate sales figures. So as real estate drops in value the cost of construction may remain the same or go up depending on supply and demand of products and labor.Back to TopDo you calculate new rates for my policies every year?
This is a good question. When your policy renews the company sends you a policy renewal and they send our agency an electronic list of the renewal premiums. Those premiums are reviewed and if there has been a significant premium change we take a closer look to see if we have another option that will save you money. If the premium has not changed we generally do not send it back out for quotes.Back to TopI have not had any claims so why did my renewal go up?
Home and Auto premiums are based on many different cost factors. Home policies have price adjustements for claims histories of large areas and they are not priced as much on individual activities. Auto policies are based on claims as well but much of the auto rate increases are the result of rising medical costs and auto repair costs.Back to TopWhy didn't you call me about my rate increase before my renewal.
This is a question I hear a lot. The answer is that I get the renewal information on your policy about the same time you get the printed copy of your renewal. I get my renewals in groups so I may actually get your renewal a few days after you receive it in the mail. Please call us if you get a renewal and you have questions.Back to Top