Pull your current policy and actually read through the main coverages and exclusions (yeah, it’s a slog). 2.
I couldn’t agree more with the idea that “Loyalty can help, but only if the company earns it year after year.” I’ve crunched the numbers for clients who just assumed their loyalty discounts were unbeatable, only to find out they were paying hundreds more for less coverage. One thing I’d add—watch for those sneaky policy changes in renewal letters. Sometimes they’re buried in the fine print and you don’t realize your deductible jumped until it’s too late. Comparing every couple years is just smart, even if it’s a pain.
I get the temptation to just let things ride if your insurance company hasn’t given you a reason to be mad, but honestly, that’s where they get you. I’ve been through this cycle more times than I care to admit, both with my own places and on investment properties. The thing that gets me is how often “loyalty” just means “you’re paying for convenience.”
One year, I actually sat down and compared policies after a friend told me his rate was half of mine. Turns out, my “loyalty discount” was basically wiped out by annual increases they’d snuck in under the radar. And don’t even get me started on those little changes in the fine print—one time my wind/hail deductible doubled and I only noticed because I had a claim. That was a rude awakening.
I’m not saying you have to switch every year, but treating insurance like a set-it-and-forget-it bill is just asking to overpay. I’ve started calendar reminders to review things every 18 months or so. It’s a pain, sure, but it’s less painful than finding out you’re underinsured or overcharged when it matters most.
One thing I wish more people realized: coverage isn’t apples-to-apples between companies. You really have to dig into what’s actually included—some policies look cheap until you see what they quietly exclude (water backup, anyone?). I’d rather pay a bit more for decent coverage than save $100 and get burned later.
End of the day, I think loyalty should be earned, not automatic. If my insurer wants to keep my business, they need to keep me covered and competitive. Otherwise, there are plenty of fish in the sea... even if shopping around is a slog.
Couldn’t agree more about the “loyalty” trap. I’ve had a few properties where I just let the policy auto-renew, thinking it was one less thing to worry about. Next thing I know, the premium’s crept up by a couple hundred bucks and the deductible’s changed—usually not in my favor. It’s wild how subtle those changes can be.
You nailed it with coverage not being apples-to-apples. I learned that the hard way when a “cheaper” policy left out loss of rent coverage on a rental. That mistake cost me way more than what I saved on premiums. Now, every time renewal comes up, I do a side-by-side comparison—deductibles, exclusions, all of it. It’s tedious but worth it.
Setting reminders is smart. I do something similar and keep a spreadsheet with notes on each property’s policy details. It sounds like overkill, but after getting burned once or twice, you get motivated real quick.
Honestly, you’re spot on—insurance companies should have to earn our business every year. No shame in making them work for it.
I’m right there with you on not trusting the auto-renew process. I just bought my first place last year, and I was honestly shocked at how much the numbers can change from one renewal to the next. I thought sticking with the same company would mean fewer surprises, but that’s just not how it works. When my renewal came up, I noticed the deductible had gone up without any real explanation. I ended up calling around and found a better deal with more transparent terms. It’s a hassle, but I’d rather spend an hour comparing policies than get blindsided later.
I had a similar thing happen—my rate jumped by a couple hundred bucks and I only noticed because I actually read the renewal letter (which, let’s be honest, I almost tossed). I called them up and they acted like it was just “market changes.” Ended up switching after a friend recommended their broker. It’s annoying, but I guess loyalty doesn’t really pay with insurance.