Ranting about my home based business insurance company

[quiltmonkey]

For the past five years, I have had RLI insurance for my (very small) home based longarm machine business. I have always paid my premium on time (in full). I have never filed a claim. However, each year that I have had RLI insurance, my rates have increased. Five years ago I joined RLI AND The bill I received from RLI in today's mail is nearly $100.00 more - incremental increases over the last five years. I don't know why I expect my premium to increase each year. It creeps up slowly every year. This is very disappointing to me. I understand that rates go up but why do they hit the little guy so hard? My very small business doesn't make a lot of money. I would like someone to explain why my bill increases every single year. I look forward to hearing a good reason and explanation why my rates go up every single year. When I called RLI last year to inquire why my rate went up, they gave me a lot of yadda yadda yadda bla bla bla on the phone. Well, this year I do not want to hear a generalized statement or excuse from the stupid insurance company.

I need to shop around for another insurance company. Does anyone have a good recommendation for longarm machine business? My homeowners insurance (USAA) uses RLI so if you have an alternative solution, I am game to hear what you have to say. 

Thanks, Shana

[Quilting Heidi]

When we talked to USAA they said my business stuff would be covered under our homeowners insurance.  My husband spoke with several people before finally just saying ok.  It is too bad that the rates have to go up so much.  I don't have a home business anymore because it just wasn't worth all the hassle.  

[Cagey]

Shana;

While I do not have a home business, I suggest you find an independent insurance agent in your area and have them shop insurers and polices for you.  I had to this with some rental property I have, and I was shocked how much I was being charged by a national firm.  While I am no longer with a well known company, I am still covered by an A+ rated company, but more importantly I have more coverage at a reduced cost.  Be sure to verify with USAA that your new insurance meshes with their coverage.  Best of luck to you.

Cagey

[Mary Beth]

When I quit the biz, I was burned out on customers of course. Turns out I was the only quilter in my area who was legal. I had my tax id number, my business was registered with the city, registered with the county, and everyone had their hand in the pot...or my bank account. At the rate I was charging customers, I was not making any money. I wanted to go about this legally, but it is hard to do. 

[MaryQuiltsTx]

I don't have any answers either. It seems every time I have a question about anything, customer service just gives me the runaround. I feel your pain and frustration. Hope you find something better.

[dlnewell]

I have State Farm and I've been pleased with them. 

[cegates]

I have a policy with State Farm - the premium is around $25 a month. It protects my Millie and IQ, plus provides liability coverage for unhappy customers or damaged quilts (material costs only).  I don't meet customers at my house so I wasn't worried about coverage for someone being injured on my property.     It is a separate policy from my homeowners.

 

Carol

[quiltmonkey]

On 8/3/2017 at 5:48 AM, Quilting Heidi said:

When we talked to USAA they said my business stuff would be covered under our homeowners insurance.  My husband spoke with several people before finally just saying ok.  It is too bad that the rates have to go up so much.  I don't have a home business anymore because it just wasn't worth all the hassle.  

We also have USAA for our homeowners insurance (and auto insurance) and they will not cover my small home based business. That's why I had to go with RLI. How is it that your small business insurance was covered under your USAA homeowners insurance and mine is not? 

[quiltmonkey]

Thanks, everyone. I'll shop around.

[Quilting Heidi]

10 hours ago, quiltmonkey said:

We also have USAA for our homeowners insurance (and auto insurance) and they will not cover my small home based business. That's why I had to go with RLI. How is it that your small business insurance was covered under your USAA homeowners insurance and mine is not? 

Shana that is really interesting.  I wonder if it has to do with location.  I know that when we had this problem I had hubby call several times to make sure we were covered.  

 

[sewingpup]

HI,

Well....my house has been insured by the same company for eons......I have owned it for 20+ years......and my parents owned it before that.....no claims have ever been filed......just private residential insurance.....and my premium keeps going up and up every year...it is now double over what it was when I first became owner of the house....the explanation I get is that it has something to do with how many other claims are being filed in the area and how large of a claim....I know of several people here who have had their 30+ year old roofs replaced because of hail damage....and paid for by the insurance company....I had my thirty some year old roof replaced...because it was old...but I paid for it myself....I dunno.... sometimes I think I am really stupid....but that is the way I am.....My grandfather never had insurance on his house because he said no one in this neighbor had ever had a house fire and that if all had put their premiums over the years into a bank account.....in the 60 some years he lived in this neighborhood...there would have been plenty of money in the account to replace a home that burned down.....I can 't live with the risk...but gully....the amount I pay on car insurance and house insurance....has gotta be close...now that I am retired...to what I pay in taxes....I think I get more out of tax dollars...at least my road gets plowed???  To make this related to quilting....I still am not...still recovering from that rotator cuff surgery....I did stitch a few scrappy nine patches....hey....I getting somewhere...I hope....Lin

[vegaslady]

As a retired insurance broker I can assure you that 1) your rates will go up and up when you stay with the same company; 2) that every 5 years you should be shopping rates; 3) that your 'business' is not being rated on YOUR experience and claims but one of a group of "like" businesses.  (Now, how many quilting businesses does it take to be an "industry".  I can't be certain but I would guess that a quilting business would be tossed into the same as tailor / seamstress and how many are there today?  Where are they located?  So many are in dry cleaners' shops.  So if that is the 'industry', the claims could actually be high (using chemicals, damages, losses, etc.); 4) how many quilts belong to customers have you actually 'ruined'...probably none; 5) are your customers coming into your home?  How much liability do you have?  If there was a liability / injury loss to a customer, your homeowner's would likely cover it;  6) where is your quilting business located?  If in a commercial building...of course you need good insurance coverage -  if in your home, do you really need it?  Are you doing enough business that IF a quilt was 'ruined' (rendered unrepairable) - that you could not cover the cost?; 7) where in your home is your equipment located?  If it's in the basement, are you subject to flooding (and remember flooding is water coming in - by disaster...NOT by water backing up!     These are all questions and thoughts that need answering or thinking about before even purchasing outside specific insurance.   As to machinery itself, it can be added to your homeowner or renter policy on a rider (if needed) but likely covered in and under your existing policy.  What is your deductible?  Most people carry higher deductibles on casualty loss (fire, wind, etc.) than liability / injury.   Would one claim for a quilt be worth the cost of premiums plus deductible?  Unless you are doing tons of quilts per year, are in a commercial building, are 'ruining' quilts of others........I would strongly ponder 'self-insuring'.  But, that's me.   But, in all cases of insurance (homeowners, auto..) make sure you keep all companies on their toes by getting quotes from others...you WILL save money, guaranteed.  You can't, however, keep changing companies every year or two or no one will want you!   Hope this helps.

And, yes, location does matter (because of theft, distance to fire departments, water hydrants, etc.)  Same as the way you're rated for homeowner's.

[MaryQuiltsTx]

That is great info Vegaslady. Thank you for taking the time to provide us with all this info.

[Primitive1]

I too appreciate the information....like you Shana I have the policy that USAA recommends as they also told me that they don't cover a home business for quilting.  Mine has gone up gradually over the years and is now close to 600.00 per year, with no claims.  They classify it under an "embroidery" business as they don't have a code for a quilting business, which explains the higher rates with the information that vegaslady gave...

USAA told me that they would not cover my machine and equipment if something would happen to it and I am on the east cost too Heidi...???? 

I think it is time for me to shop around too....thanks for bringing this topic up Shana, it's good to know there are other options out there.  I just want something to cover my machine and equipment and liability if a customer should fall down the stairs....I am going to check with State Farm too...

 

 

 

 

 

[Gator]

Great info!  I moved to MI two years ago and got reasonable insurance to close on the house.  The two new renewals went up a steady 200.00 per year.  Farmer's sent me a nice letter telling how sorry they were to increase my premium but the cost of construction materials has increased so it would cost more to replace my house.  Ugh, you just can't win.

 

[donna sco]

As I was walking out the door yesterday to go on vacation I received a flyer in the mail from AARP saying that they carried home business insurance with Hartford (I think) for AARP members.  I didn't have time to read it all but put it in my inbox to read when I get back from vacation.   Many of us are probably AARP members and this would be a nice benefit.  

[Quilting Grammy]

I can't even get home owners insurance where I live that I can afford and when we did have insurance I asked about insuring my studio that we were building. (it took 4 years to build but NO loans!)  I was told that it wouldn't be worth insuring that the LA made it industrial and that I was looking at well over $1000. every 6 months.  I don't have that kind of money so I just have to pray that nothing happens.  We have a farm and live several miles from town and have a local volunteer fire department that is only 3 miles up the road but that doesn't count as having a fire department so we just pray that nothing major happens and fix everything that needs fixing ourselves.  The insurance that we had wouldn't cover our outbuildings or our well so when it did get struck by lightening we had to pay the full bill anyway so wasn't really worth much but it satisfied the bank so when I burned the mortgage we kept the insurance for another year then said nope can't do it if it isn't going to pay when we need it.  Took the money that was going to pay the insurance and paid for a new well pump.  So I feel your pain and I understand the frustration but I am not much help.  Sorry.