My wife and I currently have NC Farm Bureau for our homeowners insurance, but our yearly bill just jumped from $1140 to $1400. We already have Geico for car insurance, and they gave us a quote for homeowners at $1325 per year, with a lower deductible ($1000 down to $500) and higher coverage. Plus, we’d save $125 off our car insurance (we currently pay $1600/year for two vehicles with collision). Anyone have good or bad experiences with Geico for homeowners? Thanks in advance!
Geico doesn’t actually underwrite homeowners insurance themselves. They just act as a broker for other companies that issue the policies.
pennila said:
Geico doesn’t actually underwrite homeowners insurance themselves. They just act as a broker for other companies that issue the policies.
Exactly. Drew, I wouldn’t get homeowners insurance through Geico. It can be tricky, and your home is one of your biggest investments. Go with an independent insurance agent. I’ve worked with companies that partner with Geico, and trust me, it’s not worth it. Lots of issues came up.
Just a heads-up, Geico doesn’t actually write homeowners insurance in any state. They just act as a middleman for other insurance companies.
True, isn’t it through Travelers?
Drew said:
True, isn’t it through Travelers?
Travelers is one of the companies they work with, but there are others too.
Drew said:
True, isn’t it through Travelers?
I’d have someone knowledgeable go through the policy Geico gave you. I worked with a company that Geico used, and their policies were often not great. You never know, but it’s worth a close look.
@Vine
Even if they choose a reputable company like Travelers, you’ve got to be careful. They sometimes leave off important things like replacement cost for contents or extended replacement coverage.
Tavi said:
@Vine
Even if they choose a reputable company like Travelers, you’ve got to be careful. They sometimes leave off important things like replacement cost for contents or extended replacement coverage.
Yep, I’ve seen a condo policy from them that only had $5k for contents. The customer was angry that our policy was $400 more a year, but it was way better coverage.
I wouldn’t recommend lowering your homeowners deductible. Any claim you file (except maybe a big disaster) could raise your premiums. It’s better to have a higher deductible and only file claims for big losses. I personally have a $2500 deductible because I can cover smaller costs myself and would rather avoid premium hikes. And like others mentioned, Geico doesn’t underwrite these policies themselves.
@Ashton
It’s all about the numbers. I have a $1k deductible because the difference in premium between $1k and $2.5k was only about $12 a year. Even $5k wasn’t much cheaper. I figure that if I ever have a major claim, the savings on the deductible will outweigh what I’ve saved in premiums.
Check to see if the policy covers open perils on your contents, if there’s a separate deductible for wind/hail, or if it’s one flat deductible. Also, see if there’s extended replacement coverage (25% or 50%) and water/sewer backup coverage. If it all checks out, you’ll get the discount on your car insurance, and any claims would be handled by the company backing the home policy (could be Homesite, Sagesure, Travelers, etc.).