I’ve been with AMFAM for more than 12 years. Our rates have jumped like crazy . My HO renewal is 500$ more than last year. Amfam service imo is second to none which is why I don’t want to leave . Here’s the problem . They keep telling me to stick to my “grandfathered “homeowners . Said the “new” one they offer to their new customers is not as good bla bla bla . I asked for a quote and it’s about 300$ cheaper. Was told there is a chance they’d drop me within 59 days since we had a couple claims ( hail damage and small fire , neither our fault )… I literally called 3 times for them to get me the quote after they promised me twice they’d get it to me and didn’t until the 3rd time.
My question is for you pros . Is the “grandfathered” HO plan I have some kind of cash cow for the broker they don’t want to lose ? That’s the vibe I get from them, so just making sure if my gut is right . Thanks for any input!
Amfam “grandfathered” home owners insurance plan
byu/PutridBeginning421 inInsurance
Posted by PutridBeginning421
2 Comments
We can’t really know, we don’t know what the coverages are for that plan.
What I can tell you is this — Every single insurance company has raised rates pretty significantly in the last few years. It’s a massive oversimplification, but many carriers didn’t raise rates at all for a while because of COVID, etc. In the last few years, inflation has really damaged the industry and we’re seeing large increases across the board after everyone lost their shirt last year.
If you have a way to show us the coverages for either one, we can probably comment. If you can show us both, we can really go through them.
I highly doubt that different types of policies offer different types of commissions usually it’s a flat rate percentage based on premium amount. If I am comparing this to my commission I get 10% on all property and casualty premium. 20-30 dollars is not worth losing a customer. Please keep in mind that I am not sure how amfam does their commissions just stating from my POV
Before doing anything I would schedule a time to sit down with your agent or one of his employees to go through the differences of the “grandfathered” policy and the new policy and make the decision with the facts laid out in front of you.