Insurance question?

Question

I have an 11 unit apartment complex, in one year my premium has gone up $285.93. I want to know how Famers came up this number, I want them to show me a formula on how they came up with increase. My agent is saying " I don't have access to this information. Don't I have a legal right to know?

Answer 1

Wow, that's less than $25 a unit, NOTHING to complain about.

You want the rating calculation? Pay me $100 an hour plus travel expenses, and I'll teach you how properties are rated, both property and liability. It will take me about 12 - 16 hours to teach you the basics. Just to let you know.

If you want to see the rates, they're on file with your state insurance department. That's not what you're asking for - you're asking to be taught, how to apply the raw rates to a particular risk - to learn how to rate.

You're going to hate this, but you're what I'd call a "high maintence, low profit" kinda guy. Rental properties are the dregs of the insurance world, and unless you have at least 50 units, I won't even quote you. I don't expect your agent would want to work that hard to keep your account - he doesn't make enough money off of it for the kind of "service" you're expecting.

Answer 2

rate increase are a function of the carriers overall experiance within a class. If they want the business they offer rates that are lower than the competitions...if they dont want it they raise rates. You dont mention what your total premium is. The dollar increase may have been a small percentage or it may have been large.
Furthermore think of the things that go into paying claims like consruction costs and the cost of replacement materials then compare the increase in those items to the increase in your premium.

Sometimes insurance companies make money and sometimes they lose money. They have an obligation to all the people they insure to have the needed funds for all claims and set some aside for large storm type losses. Farmers has a pretty decent reputation but you should probably get another quote from a good company.

Answer 3

It is actuarial mumbo jumbo. Contact the head of the Underwriting department direct. If they won't tell you, contact your state's Insurance Department. The number looks like a percentage. Your insurance can charge anything they want.

Answer 4

It's called the insurance rip off game. They just add on money every year and claim it's because of more claims, or some other crap. They make mostly profit and deny claims all the time.

Try going over his head.