Farmers insurance going out of business.

[Shuffler]

I've had farmers homeowners insurance for 25 years. In that time I had 2 claims. No claims in the last 10 or more years. New bill says they are doubling my rate.

Just over a year back they removed my insurance person I have done business with for 35 years. They moved me over to some girl who is brainless when it comes to insurance. At the time I called the 800 number on the paperwork to discuss this move. Not a soul returned my call. I call the tart they moved my insurance to and left a message to call me and never heard a word.

I just hate useless people.

[rpm]

Farmers is a lousy company. You're lucky they didn't dump you on the 1st claim.

[mbailey]

Homeowners rates are going up across the board.......mainly due to the large amount of losses the companies have suffered over the last 5 years. Even if you didnt have a loss, the companies will increase rates on their policyholders to make up for the losses paid out by them elsewhere. The other reason is that insurance companies  are pulling out of areas along the coast due to the risk, ( loosing premium and hence $$$$$.) Couple that with the  increase in reinsurance costs to the insurance companies (Reinsurance is policys bought by insurance companies to cover major losses....think of it as insurance for insurance companies)  They need to make it up somewhere, and sadly its thru their insds.

Oh and regarding your agent, the majority (not all) but the majority are useless, and barely know what it is that they are selling......I speak from experiance

Farmers is a lousy company. You're lucky they didn't dump you on the 1st claim.

Harder to do that than you think when it comes to homeowners insurance......varies by state insurance regulation though.

[guncrasher]

mbailey i used to work at transamerica reinsurance.  one word of advise dont get them confused about what reinsurance is all about.  they will think it's a scam.

and yes find an insurance agent that is knowledgeable.  shop around even within the same company till you find one that can you feel comfortable doing business with.


semp

[Molsman]

but their Commercials are so Dam cool 

[Shuffler]

I'm dropping farmers ASAP.

My old insurance agent sells all types of insurance. I have him getting me setup elsewhere.

[ghi]

 switch to Geico!

[uptown]

State Farm has always done good by me.

[ACE]

We switched away from Farmers after our house burned down.  They would not re-write us.

[zack1234]

They made their money by investing the money they got of policies.

Now the financial sector has broke again they cannot make any money

[CAP1]

Homeowners rates are going up across the board.......mainly due to the large amount of losses the companies have suffered over the last 5 years. Even if you didnt have a loss, the companies will increase rates on their policyholders to make up for the losses paid out by them elsewhere. The other reason is that insurance companies  are pulling out of areas along the coast due to the risk, ( loosing premium and hence $$$$$.) Couple that with the  increase in reinsurance costs to the insurance companies (Reinsurance is policys bought by insurance companies to cover major losses....think of it as insurance for insurance companies)  They need to make it up somewhere, and sadly its thru their insds.

Oh and regarding your agent, the majority (not all) but the majority are useless, and barely know what it is that they are selling......I speak from experiance

Harder to do that than you think when it comes to homeowners insurance......varies by state insurance regulation though.

 so basicaly, their business is to insure us. in doing so, they gamble that they won't have to pay out a loss. when they have to payout a loss, then they decide that they don't want to lose the gamble, so they raise rates?

 i'm not trying to be wise.......

[SmokinLoon]

so basicaly, their business is to insure us. in doing so, they gamble that they won't have to pay out a loss. when they have to payout a loss, then they decide that they don't want to lose the gamble, so they raise rates?

 i'm not trying to be wise.......

Wrong.  Insurance companies pay out about $1.02 in claims for every $1 they bring in.  How do they make money???  By getting a %3-6 return on their investments in the stock market and bonds.  They rates are HIGHLY regulated by the States.  If anyone thinks for one minute that the insurance companies are rolling in the dough think again, their profit margins are very minimal.  When the companies as we know started over 100 years ago (that includes THEE big boy Loyds of London), they made their profits and put them away.  That old money is what the companies are standing on today.  Times have changed in a major way, think of it this way: 50 years ago when the wind came up and ripped off teh screen door the home owner fixed it on their own.  Today, the "I pay my premium so someone else will fix it" mentality rules the day.  The rate you pay is DIRECTLY related to the premium brought in vs claims paid out ratio in your rating area.  I can go on and on regarding insurance companies, the money, claims, etc.  But I will wait for the ensuing questions.       Take my word for it: Take the time to get to know your agent, ask for options not prices, and do not skimp on insurance because for a few $ more you could have double or triple the coverage.

How do I know all of this?  I was an insurance agent for 8 years, most of it with Allstate.  Currently I am a claims adjuster and work with property claims such as houses, farms, machinery, etc.

[Shuffler]

Wrong.  Insurance companies pay out about $1.02 in claims for every $1 they bring in.  How do they make money???  By getting a %3-6 return on their investments in the stock market and bonds.  They rates are HIGHLY regulated by the States.  If anyone thinks for one minute that the insurance companies are rolling in the dough think again, their profit margins are very minimal.  When the companies as we know started over 100 years ago (that includes THEE big boy Loyds of London), they made their profits and put them away.  That old money is what the companies are standing on today.  Times have changed in a major way, think of it this way: 50 years ago when the wind came up and ripped off teh screen door the home owner fixed it on their own.  Today, the "I pay my premium so someone else will fix it" mentality rules the day.  The rate you pay is DIRECTLY related to the premium brought in vs claims paid out ratio in your rating area.  I can go on and on regarding insurance companies, the money, claims, etc.  But I will wait for the ensuing questions.       Take my word for it: Take the time to get to know your agent, ask for options not prices, and do not skimp on insurance because for a few $ more you could have double or triple the coverage.

How do I know all of this?  I was an insurance agent for 8 years, most of it with Allstate.  Currently I am a claims adjuster and work with property claims such as houses, farms, machinery, etc.

Nothing can explain doubling of premiums. Farmers is just going down hill. It started when they removed the man I have been doing business with for years. They preferred an idiot take car of my insurance instead. I had to wait a year to switch back to my previous insurance contact. I will be doing it this month.

[SmokinLoon]

Nothing can explain doubling of premiums. Farmers is just going down hill. It started when they removed the man I have been doing business with for years. They preferred an idiot take car of my insurance instead. I had to wait a year to switch back to my previous insurance contact. I will be doing it this month.

I dont blame you for switching.

If they truly doubled their premiums then the state allowed it for reasons of loss ratio.  No company can just do that just to pad their pockets.  Just out of curiosity, how much is your premium and how much is your house insured for?

[CAP1]

Wrong.  Insurance companies pay out about $1.02 in claims for every $1 they bring in.  How do they make money???  By getting a %3-6 return on their investments in the stock market and bonds.  They rates are HIGHLY regulated by the States.  If anyone thinks for one minute that the insurance companies are rolling in the dough think again, their profit margins are very minimal.  When the companies as we know started over 100 years ago (that includes THEE big boy Loyds of London), they made their profits and put them away.  That old money is what the companies are standing on today.  Times have changed in a major way, think of it this way: 50 years ago when the wind came up and ripped off teh screen door the home owner fixed it on their own.  Today, the "I pay my premium so someone else will fix it" mentality rules the day.  The rate you pay is DIRECTLY related to the premium brought in vs claims paid out ratio in your rating area.  I can go on and on regarding insurance companies, the money, claims, etc.  But I will wait for the ensuing questions.       Take my word for it: Take the time to get to know your agent, ask for options not prices, and do not skimp on insurance because for a few $ more you could have double or triple the coverage.

How do I know all of this?  I was an insurance agent for 8 years, most of it with Allstate.  Currently I am a claims adjuster and work with property claims such as houses, farms, machinery, etc.

 well, our old agent, i knew and liked. he even came to both my grand mothers and grand fathers viewings and funerals. he retired, and his son took over. i cannot say in this forum what my opinion of his son is.