Re:Show HN: Software to give insurance advice like an agent ...
by secabeen on Thursday July 05, 2018 @10:01PM
(#17468380)
Ahh, good to know that the DOI has some teeth on the accuracy of the recommendations. That makes me more comfortable to take the extended replacement. Still frustrated that I can't just sell that risk to an insurer. After all if GR has caused big claim headaches in the past, and ER wouldn't have had those headaches, wouldn't that be to the customer's benefit to have GR?
Re:Show HN: Software to give insurance advice like an agent ...
by chrisplotz on Thursday July 05, 2018 @11:08PM
(#17468575)
The headaches as I understand it are mathematical really - without a limit to cap costs, outliers have the potential to completely mess up the pricing. Anything where one claim could destroy the predictability of results is hard. So only a few wildly inaccurately priced GRs can take down a whole book - hence capping. If you aren't likely to have outliers, you don't need limits, and some HNW insurers are removing limits entirely since they just price accordingly.
On guessing rebuild, in CA you shouldn't have to guess, as it's the insurer's legal requirement to recommend something accurate, and the DOI supports the consumer there. Generally those increases will do the job on like-for-like replacement - the big problem is if your Building limit has not been reviewed for years, as they get out of date.
Guaranteed is definitely expensive since it has cost insurers some big claim headaches, so not surprised it's even harder to find now as some insurers are hurting after all the fires.