When the purchase of a home involves a loan, as most home purchases do, all lenders require that casualty insurance be in place at close of escrow. Thus, the policy costs are included on the escrow settlement statement. When our client is the buyer, we, TNT, consider the casualty insurance policy cost as part of our overall review of the escrow settlement statement prior to our client signing, so we became aware of substantial differences in the annual premiums.
Where we found those costs to be relatively high, of course, we so advised our client. Somewhat to our surprise even when those costs have been quite high, no client has never changed their insurer at that point. Especially in hind-sight and awareness of the information and resources outlined in this article, none of the reasons given for continuing with a pricey policy seem to make any sense.
Companies selling “insurance” of any kind within the State of Arizona must file documents with the Arizona Department of Insurance (AZ DOI) that include the premiums to be charged. This information is made available to the public, as linked just below.
Consumer Guide and Premium Comparison for Homeowner Insurance (Insurance premium cost comparisons for homes valued at $100,000, $300,000 and $500,000, located at specified hypothetical locations…)
You can also review and/or download the 2014 version of that document on this website here
Not only are the premiums reported there, but also “Complaint Ratio” information.
As shown in that list, sorted least-expensive to most-expensive, the annual premiums vary from $535 to $3,220 for the typical coverage on a $300,000 property … a difference that’s difficult to comprehend.
Check out LM Ins. Corp (Liberty Mutual) on this list … near the bottom for cost, a very low complaint ratio and a significant number of policies in place.