Insurance What insurance company do you use?

slowrev · Feb 14, 2007

I had been a state farm customer for 30 years. When I bought the old family farm in KY, they would not insure me because it was too far out of town(12 mi).
So I moved ALL my insurance to Farm Bureau and have not regretted it.
Saved money on the other insurance as well.
Ben

dynasim · Feb 14, 2007

Chuckatuck said:
The first case is about whether FB committed "bad faith" when they allegedly failed to pay or offer a reasonable amount -- thus forcing frivolous litigation. The case had enough confusing facts that the Ct. of Appeals gave Farm Bureau a free pass. Mind you, FB did pay the full 75K based on the court verdict.

The second case dealt with exclusions in the policy. Again, in "our" context, this is something that has been discussed a few times about which policies will cover your tractor whether on your property, off your property, while doing "paid for" work, etc.

A great example is State Fraud's denying the many claims in Miss. & Alabama based on "wind-driven water" vs. flooding. Now I read they are discontinuing writing policies there because they are being held to account.

The last case, FB v. Allen, et. al., revolves around a homeowner's policy exclusion for "intentional" acts. (see the 2nd case).

I am insured with Farm Bureau in Va. I deal with their representatives and find them to be o.k. One other perk of FB membership is you can get discounted "farm supplies" thru FB or Grainger (at least in Va.).

Just remember, an insurance company is NOT there to "help" you--contrary to all those "good hands" and "neighbors" out there. I've seen people who've paid premiums for 20+ years get dumped on. Every time you pay a premium, they are betting that you DON'T make a claim so they can profit--you are betting that you WILL make a claim or suffer a loss.

It's really that simple in the end. Go with FB.

I did misread the first case. The plaintiff was a premium payer, and did get paid. However, I still don't think he had a case for suing FB, since FB was simply tagging along on the law suit against the first insurer. I can't see what FB did wrong, though the fact against the plaintiff weren't as egregous(though they were odd) as I thought in the primary lawsuit, which the plaintiff won.

Chris

Chuckatuck · Feb 15, 2007

Chris,

I don't practice in NC, but most states have statutes that require ins. carriers to evaluate, investigate and ultimately negotitate in good faith. If a company fails to do so, they can be liable for the plaintiff's attorney's fees and costs of prosecution as well as other things depending on where you live.

Otherwise, ins. co.'s would deny everything (or lowball) every case and cause you to prove the case in court. Allstate and State Farm have adopted this approach in certain car crash cases. (see Hardball tactics)

It is strictly a "business" strategy where companies can save more by denying (or lowballing) most claims in the hopes that more people will either take the money or not file a claim. If they get busted for "bad faith" once in a while, that's o.k. (kinda like the Ford "Pinto" mentality) or they can do like State Farm and just stop writing HO policies in Miss. because they got hit with a "bad faith" judgment. If I had State Farm, I'd be looking elsewhere right now!

BTDT · Feb 16, 2007

I have State Farm, and it's more like they "use" me.

hunterridgefarm · Feb 16, 2007

mars1952 said:
Hi Everyone: Right now I have State Farm for all my insurance coverage. The problem is State Farm does not offer coverage for my tractor and equipment if it is used for farm activities. I have a small farm that I claim on my taxes therefore State Farm will not cover my farm equipment. I also have a Polaris Ranger that I use for farm work. State Farm is willing to insure it like they would a car to the tune of about $1000 a year for liability or about $2000 for full coverage.
I dug into the insurance question and have come up with an insurance company The North Carolina Farm Bureau Insurance Group. On paper they look great. They offer much higher liability coverage and they will cover my farm activities, equipment, animals, employees and the Ranger (only $90 per year for the Ranger). If I switch over to Farm Bureau insurance for everything (house, cars, farm, ranger) I could save about $200 per year plus they would cover the farm stuff and ranger where as State Farm does not cover the farm or the Ranger. However, I have read several legal articles on line that describe court cases where The Farm Bureau has weaseled out of their liability coverage.
Rivenbark vs Farm Bureau
Rivenbark v NC Farm Bureau Mut. Ins., 155 NC App 777 (01-1420) 01/21/2003 - Unpublished
Rowe vs Farm Bureau
Rowe v NC Farm Bureau Mutual Ins. Co., (02-539) 04/15/2003 - Unpublished
My questions are: Is The North Carolina Farm Bureau Insurance Group more of a weasel than any other insurance company? Has anyone here had personal experience with the Farm Bureau? Who in North Carolina has an insurance company that they would recommend for my needs?
Thanks, Marshall

Marshall,

I have State Farm for all my insurance except for a farm I have that still has the old house and barn on it. State Farm will not cover it because of this and I have Farm Bureau to cover that.

State Farm should be able to cover your equipment on the Inland Marine police which is how I have mine covered, cost around $200 a year for my tractor. You can get the same coverage for the Ranger and it is comprehensive coverage. Call the home office and discuss it with them just incase your agent is not up on the type of coverage.

Although it may be because of the farm operation dealing with employees using your equipment.

Farm Bureau operates as a stand alone insurance company in each state for there P/C insurance. The life insurance usually has several states covered under the company.

They do pay claims good and are more geared to the farming type operations. You have an office in each County and usually an adjuster that is station in that office or next County over.

You will have to join the Farm Bureau Federation in order to carry insurance with the insurance company and that cost about $25 a year. Don't be surprised if they require you to insure you home and autos with them if they cover your farming operation. They call it supporting coverage.

With Farm Bureau you need to get a agent that has been with them several years. They have a high turnover on new agents and you don't want your book of business handled by a different agent every two years. Its best to keep the same agent that way he knows your coverage from the beginning.

Farm Burear is a good company but their agents are required to sell several life insurance policies a month or risk losing part of their commission on the P/C book of business they have. So don't be surprised if they push for life insurance or another type of policy on you especially if they are behind in that part of sales. Don't misinterpreet the life insurance part, I do believe everyone needs it and should have it. But some the agents sell it just to sale a policy for "their needs" not the clients. And Farm Bureau push their agents more on life insurance than any other line they sale.

mars1952 · Feb 17, 2007

Hi hunterridgefarm:
Thanks for the advice. I have pretty much decided to go with Farm Bureau but I haven't convinced my wife yet.

IMHO Life insurance is a poor investment unless you die young. The gain in the cash value of a mature life insurance policy is far less than the inflation rate. You are much better off investing your money (unless you die young). Just about any dividend producing stock out performs Life Insurance. I have never paid for life insurance. I have had several term life policies that were provided by my various jobs but I didn't pick them up when I moved on. Instead I have invested my money in various ways and now have enough assets that my heirs will be fine without insurance.

Here are some of the best investments that I have ever made starting with the best:
Education: Increased earning over a life time. Sadly, few people seem to think of education as an investment.
Real estate: Land and houses have gone up and will continue to go up faster than the stock market.
Dividend producing stock: This type of stock throws off 3 to 5% income and increases in value over the years. Southern Utilities are the best example i.e. Duke, Southern Company, FPL GROUP, DOMINION RESOURCES, TECO ENERGY, PROGRESS ENERGY, SCANA and PINNACLE WEST. These stocks have gone up about 15% (dividends plus gain in value) every year for the last 20 years. Buy these stocks straight from the company using DRIPS (Google drips). Stocks go up and down with a general upward trend. However the dividends stay relatively constant. These type of stocks are great for your retirement years.
Index funds: QQQQ NASDAQ-100 SHARES INDEX, VFINX S&P 500 index fund. The Dow, S&P 500 and the NASDAQ have gone up about 10% per year over the years on average.

Here are the worst investments that I have made (I made these investments using the advice of Smith Barney):
Flash in the pan tech stocks: Q-West, Phizer (although Monsanto split off of Phizer and is doing quite well)
Mutual Funds: Although most mutual funds gain a little each year 99% of them under perform the stock market. The only good mutual fund IMHO is VFINX. Most of the mutual funds that make good money are closed to new investors.
Bonds: Bonds under perform inflation. Bonds are only slightly better than putting your money under your mattress. Bonds are 100% safe. If you have tens or hundreds of millions and you want to protect some of it then buy bonds.

Insurance agents and stock brokers make their money by selling you things not once but over and over. If you buy Life Insurance keep it until it matures. If you buy stocks buy stocks that you can keep for a long time. Slow and steady wins the race.
Marshall

hunterridgefarm · Feb 17, 2007

Sound s like your on you way to a nice retirement.

I carry enough term life to put my son (16 years old) through college and to take care of my wife so she will not have to sell any property or use our savings and investments.

What county are you located in?

patrick_g · Feb 17, 2007

Mars1952, You need to check with an alternative State Farm agent for a second opinion. I have state farm coverage on my tractor and implements. We have what they call a farm and ranch policy, sort of enhanced homeowner policy. We have state farm insurance on 4 vehicles plus tractor, implements, house, contents, out buildings including 35x70 ft shop, hay barn, well house, etc.

Our new house has an attached tractor and implement storage structure, a two story workshop, and a 3 car garage. State Farm insures it all plus liability and umbrella.

It could be that coverage differs state by state but I'd get a second opinion before I gave up on state farm since they are about as good as insurance gets.

Pat

mars1952 · Feb 17, 2007

Hi hunterridgefarm:
My kids are all grow, out of college and mostly on their own. I live in Buncombe county near Asheville. My farm is in Madison County.
Marshall