Right when I bought my house back in 2002, I hooked up with Allstate since that’s who I had my auto insurance with and things were groovy…for a month and then they dropped me and I had to scramble.

I’m still bitter about this…though I still have my auto insurance with them.

Apparently it didn’t sting enough.

Anyway, as a result and after much panic, I ended up with the bottom-of-the-barrel delapidated crack house insurance which cost a fortune and covered essentially nothing.

It’s called the “FAIR” Plan and it’s run by the state.

Most states offer it to those who are considered un-insurable by a reputable company.

Yeah, I felt like a loser.

Did I mention that I feel that Allstate wronged me?

Yeah, they did.

So, with that scarlet letter on my record, it was an endless uphill climb (with a roughly $50k pricetag) to get back to an insurance policy similar to what most non-crack using people have.

But after all of the renovations that I’d done on my home — and the obvious career path that I’ve taken (which in no way involves crack) — one independent insurance agent finally threw me a bone and got me a regular insurance policy.

It was pricey but cheaper than what I’d been paying to the state. And it actually covered something!

Anyway — that was in November of 2008.

For my first anniversay, I mean renewal, I paid my premium right on time.

But in 2010, I committed the unthinkable for a money blogger.

I didn’t pay my bill.

An offense that could’ve landed me right back on the FAIR plan.

Statistically, I appeared as a deadbeat, especially based on the reputation of my past insurer.

The renewal notice and bill just happened to come days before my dad died and, well, it got lost in the following chaos. It’s not a great excuse but it’s the truth.

Upon realizing this oversight (I *totally* freaked out expecting the worst), we paid the premium in full with a back-dated check and, thankfully, not a peep came from the insurance company.

We dodged a bullet, in my opinion.

So this year, not looking to make a habit of appearing as a crappy policy holder to the insurer that I’m still so thankful for, I paid my premium ($873) in full again.

In September.

So, was it good idea? Well, let’s look at the numbers for 2010…

Had I enrolled in the dental plan offered by my primary employer, I’d have had $38.41 withdrawn from my paycheck.

I’m on a bi-weekly pay schedule so if you multiply that by 26, the total in dental expenses for the year would be $998.66.

(I think we pay more than that per month for health insurance — but that’s another story…)

The $998 value is a bit deceptive, though…

Dental insurance doesn’t cover everything — not sure if that’s the norm or if the insurance we’re offered just sucks but in years past (when I was carrying dental insurance), I’d still have to pay for things like fillings, root canals, and crowns out of pocket.

Perhaps I wasn’t paying the full percentage but, still, the grand total dental expenses definitely exceeded the insurance premiums coming directly out of my paycheck.

For the sake of simplicity, though, let’s just pretend the $998.66 premium covered everything.

Now, I didn’t carry dental insurance at all in 2010. I still went to the dentist twice per year — I’m pretty sure I even had a cavity filled. My wife still went on a regular schedule as well.

We never turned down a service — it was just like it’s always been except the bill came directly to us.

Total damagage for the year? $490.00

So using the unrealistically conservative $998.66 value, we saved over $500 by droping dental insurance.

Definitely a wise move.

Now, once Duncan and Duncan II are old enough to be going to the dentist, well, we might need to re-evaluate the numbers.

Coverage for the entire family (using 2011′s numbers) would set me back $1530.10 per year and still not cover many of the, what I’d consider, basic procedures.

I dunno — still seems like a raw deal.

With the “savings” we’ll have by skipping coverage each year, we should easily be afford to pay for braces should they need them…

I know, I know… It’s pathetic to be giving up on it after just one week but the goal of spending less than $1500 for the entire month isn’t possible anymore.

A couple of annual business expenses that I’d totally forgotten about happen to come due in February.

Further, I just received a bill for roughly $200 from the dentist for a cleaning that I had done in January. Remind me to say “No” to the x-rays next time…

We dropped our dental insurance last year as we we’d been paying out more in premiums for years than our bills would have cost if we’d paid out of pocket.

It’s times like these where it feels like a bad decision but, mathematically, it was sound.

I only wish we could do the same for our medical insurance but that’s a whole other issue…

Combined — plus the routine monthly utility and mortgage expenses — well, I’m going to exceed the $1500 ceiling in no time so here’s the new goal…

It’s actually a tangent of the original goal — I’d wanted to spent less than $1500 so I could pay down my credit card debt at a more robust pace. Well, the new goal is to have one of the remaining credit card balances paid off by month’s end.

That exceeds the original goal and, yeah, I might need to “borrow” a bit from savings to do it but it’ll be the right move in the long run.

Just like dropping our dental insurance was…

My 6-month policy next comes due on September 4. That’s only two weeks away!

The full premium for the next six months is $900-something. I don’t know the exact amount but it doesn’t really matter: I’m not in any position to write a check (or submit an e-payment) for that kind of money.

So what’d I do?

I signed up for their autopayment plan where it charges one of my credit cards each month — plus $3.50 per payment or some such ridiculous fee.

It’s not ideal — I prefer to pay things upfront and put them out of mind — and the fee drives me insane but I’m not going to dwell on it.

My insurance policy will be renewed and paid for on its own, like autopilot, and it’s not going to break the bank in the process.

I’ll take that.

The number of individual diapers and/or canisters of Similac that have come in the mail over the past few months is just crazy…

Of late, as the big day grows closer, we’ve been receiving countless glossy inserts in the mail heralding cord blood.

More specifically, “banking” umbilical cord blood.

For those that don’t have a pregnancy in the family (or haven’t in the past decade), the idea is that blood collected from the umbilical cord shortly after birth can cure diseases that may come up in your child’s earlier years so, in marketing-speak, it’s in your best interest to “bank” it for the future.

A surprising number of companies, at least ten, offer this seemingly sci-fi service and they’re all vying for my business.

The pitch is always the same.

They use guilt to sell their product.

It’s pretty creepy actually…

The most recent, which arrived yesterday, is from a company called ViaCord.

The photo on the front is of a baby on the floor where an electrical outlet “should” be. In the picture, the outlet is about 6 feet up on the wall with the caption, “Protect baby. That’s what mommas do.”

One sec, I’ll scan it…

Okay, fair enough.

It’s kind of creative, I’ll give them that, and certainly more appealing to the eye than, say, an umbilical cord oozing blood or something.

Inside the fold, they claim that saving your baby’s cord blood is something “you’ve just got to do.”

Bluntly, all of the advertisements sugarcoat the exact same message, “If you don’t do this, your baby will DIE!” followed by an evil laugh.

In their words, it protects your baby (and apparently other family members too) from “over 70 diseases like Leukemia.”

Forgive my ignorance but I had no idea that there were 70 diseases like Leukemia.

I’m pretty sure that’s not how they meant it to be interpreted. Or maybe that was their plan.

Maybe there actually are 70 diseases just like Leukemia? I just don’t know…

The text continues, “In addition, cord blood is emerging as a treatment option for Type I Diabetes and Cerebral Palsy.”

“Your baby’s cord blood is priceless.”

Hmmmmm… funny that they don’t list what they’ll charge you to harvest it and then bank it…

I guess the real way to think about it is as insurance — a new-age kind of health insurance, of sorts.

I’m still not sold on it.

Neither is my wife so it’s very unlikely that we’ll invest in it when the big day arrives in a matter of weeks.

Furthering my confidence in our decision is the fine print:

The odds that a family member without a defined risk will need to use their child’s cord blood are low. There is no guarantee that the cord blood will be a match for a family member or will provide a cure. Autologous cord blood stem cells will not guarantee suitable treatment for all inherited genetic diseases.

Um… so why would I pay hundreds (or even thousands) of dollars to do this?

It costs money but doesn’t guarantee anything…

Seems a little like snake oil to me…

(Or insurance, frankly… The kind that doesn’t actually cover anything.)

Sure, it was just six months ago that I knocked $400 off my premium by actually calling my agent to tell them that I’d gotten married YEARS earlier but still…

Over these past six months, I haven’t gotten any tickets, I haven’t gotten into any accidents, and let’s face it, my cars aren’t getting any “newer”.

One is over a decade old and the other is a subcompact economy car.

And that’s why I don’t get it.

They’re worth *less* but I’m paying *more* to insure them? Huh?

But really, the “new” 6-month premium is $897.20 — that’s a mere $11.80 more than last time.

It’s not that big of a deal so I’m not going to worry about it too much but, seriously, it should perpetually go down until I purchase a new car or file a claim.

You’d think, any way…

No, I’m just kidding… (I did survive, though…)

I’m actually breathing easier these days because I’m pretty confident that the dark cloud that I used to call homeowner’s insurance has finally blown over.

After 5 long years…

Yep, it’s officially been three months now with the new carrier — a conventional one, not a bottom-of-the-barrel State run one — and I haven’t been treated like a piece of crap or cancelled for no apparent reason yet.

This is a good thing. It’s new for me.

And, best of all, I’m actually covered should anything happen.

At least, I think I am…

Sure, the terrible policy they offered me (which I had to accept) barely covered anything to begin with but I just knew, deep down, that if I were to ever file a claim, they’d fight me every step of the way.

Thankfully, the need never materialized and now I’m with a much more reputable insurer.

But does that even matter?

Living in the outskirts of Hartford, Connecticut, the insurance capital of the world, the subject of insurance is in the news pretty often.

The media’s target this week is the insurer for Peanut Corp. of America (yeah, that company in Georgia responsible for the salmonella outbreak); The Hartford.

Though they’re one of the biggest insurers in the United States, a lot of people around the country are unfamiliar with The Hartford. That is, until you jog their memory a little.

Remember those awesome red plastic fire helmets that we all wore as pre-schoolers?

Yeah, those were all courtesy of The Hartford.

Seems their best marketing tool targets folks that are a little too young to use their services…

Anyway, given that there have been a number of deaths attributed to this tainted peanut supply, the lawsuits are sure to roll in.

This is where The Hartford comes in:

The peanut processor at the center of the nation’s deadly salmonella outbreak could be in an even stickier mess because its insurer — The Hartford — has rushed to court to limit what it might have to pay on lawsuits.

Hartford Casualty Insurance Co., part of The Hartford Financial Services Group, is asking a federal court to determine what its responsibility is on three years of policies it issued to Peanut Corp. of America.

The peanut processor makes peanut butter and peanut paste, which is used in baked goods and other foods.

The salmonella bacteria outbreak has sickened about 575 people nationwide, and at least eight have died. Connecticut’s Department of Public Health said nine cases of illness here may be associated with Peanut Corp. products.

The Hartford could be on the hook for up to $31 million in claims under the liability insurance policies at issue if it gets only unfavorable court rulings. It might cost the insurer millions more in legal costs, depending on how the policies were written.

Rather than wait to be sued by its customer, Peanut Corp., The Hartford asked U.S. District Court for western Virginia this week for a declaratory judgment on the policy dispute.

Peanut Corp. could face hundreds of millions of dollars in claims of various kinds, said Bill Marler, a Seattle trial lawyer specializing in food-borne illness lawsuits. Only three suits had been filed by Thursday afternoon on behalf of salmonella victims — two of them by Marler — but more are expected. The peanut company will also face massive claims from businesses for the cost of food recalls and lost profits, he said.

With the company facing all that and a federal criminal investigation, “it does seem a bit like The Hartford is kicking their insured under the bus at a time when they probably need a little support,” Marler said.

Now I can’t claim to know all of the details of their policy, and maybe the Hartford has a good reason for doing this, but the purpose of an insurance policy is to cover your arse if anything goes awry and, in this instance, the insurance company is pro-actively covering their own and trying to dodge their responsibility.

That’s wrong. On a number of levels, in my opinion…

In the unlikely event that something goes horribly wrong, the insurance company is supposed to have your back.

That’s the whole purpose — that’s exactly what insurance is for!?!

Seriously, if the insurance companies are still willing to sell the policies and the customers are still paying their premiums on time, should anything go wrong that’s covered in the policy, it’s the insurer’s responsibility.

What do these companies think people pay the premiums for?

If my house burns down tomorrow or if I’m in another car accident, will my insurance carriers pull this same type of move?

At this point, with news like this, I’m not exactly confident in saying that I’m “actually” covered for anything… even though I pay my premiums every time a bill comes in.

Seems now, maybe, I’m just sending them money for nothing…

Can’t anyone hold up their end of a contract these days?

Each October, on the anniversary of my mortgage, Countrywide runs an escrow analysis to ensure that they’ve put enough of my monthly payments aside to pay for things like city property taxes and the premium on my homeowners insurance.

This past October was no different, in that they did an escrow analysis. Totally expected.

Unfortunately, the results weren’t in my favor like they have been in the past — not sure why I didn’t mention it back in October…

Anyway, the short of it is that my monthly mortgage payment increased $78 — due entirely to the assessment done on my house in 2007 which resulted in an increase in my tax bill. Lucky break for the city, you know, doing a city-wide assessments when the market was at it’s all time high…

Anyway, not that big of a deal, I mean, I know it doesn’t sound like much, but it’s just a little bit of an annoyance knowing that another $78/month (or $936/year) isn’t hitting the principle. Whatever — it’s not the end of the world.

It’s like I’m paying the cable bill twice or something.

The last time my payment went *way* up, the following October I received a check from Countrywide. It was an escrow overage check. Somewhere along the line, numbers were incorrect and they were collecting too much from me for an entire year.

While the check was a pleasant surprise, I was a little bothered by the fact that they had continued to over-collect for, well, 11 months when my property taxes hadn’t increased enough to justify the bill hike and my insurance premium had remained steady.

Though they paid me back, with interest, I still felt a like I’d been ripped off.

I just chalked it up as something where, once they do their escrow analysis, that’s your payment, set in stone, for the next calendar year. I dealt with it.

So this year, when I caught wind that my payment was going up, but knowing that I was going to be switching my homeowners insurance (and lowering the premium paid from escrow), I was a little ticked off.

Terrible planning on my part. I couldn’t believe I’d overlooked this…

My mortgage payment was supposed to go down this year, not up!

I paid the November mortgage bill. And the December bill.

But then when Countrywide paid my homeowners insurance premium when I’d asked them not so, I saw an opportunity to do something about making sure that my payments wouldn’t go up again next year — or ever, barring any tax hikes.

I wanted to pay my insurance premium myself — take over the responsibility from Countrywide and, in turn, lower my monthly mortgage bill.

I went back to their online customer service page, where I’ve had so much success in the past. Not.

Here’s the message I sent:

I sent a message yesterday asking Countrywide NOT to send out the premium payment for my new homeowners insurance, but today I noticed that my transaction history has been updated and the payment has already been sent (dated Tuesday).

That’s fine — I’ll call them and have them accept Countrywide’s payment instead of mine.

In the future, next year, I’d prefer to pay the premium myself instead of having it built into my escrow account through Countrywide. How would I go about changing that so that this double payment scenario doesn’t happen again?

Thanks!

And here was their (prompt!) response:

Thank you for your recent Internet inquiry addressed to the Customer Service Department.

Our records reflect that we did not receive an e-mail from you in November 2008, the last e-mail received from you was on September 22, 2008. This is to confirm that your insurance information has been updated with an annual premium of $633.00, effective from November 11, 2008 to November 11, 2009. A payment has been disbursed from your escrow account to your insurance company for $633.00 on November 18, 2008.

As per your e-mail we have reviewed your account, your loan meets all the criteria for the deletion of insurance from the escrow account. We have hence deleted insurance from your escrow account as you asked. We have analyzed your escrow account on November 20, 2008,your monthly payment effective January 01, 2009 will be $1,226.7. An Escrow Review Statement has been generated and will be mailed to you, please allow approximately 7-14 days for receipt via U.S. mail.

We have provided a breakdown of your monthly installment, which will be effective with your January 2009 payment:

Description
Principal and Interest Payment : $817.27
City Taxes ($1,912.09 semi-annually divided by 12) : $318.68
P.M.I contribution monthly : $85.15
Reserve 16.60% : $5.27
Total Monthly Payment : $1,226.37

The Reserve item is an amount equal to 16.60% of the total amount of your escrow payment for the year that is collected each month. The Reserve amount is collected to ensure that the account has sufficient funds in the event that your tax and/or insurance bills increase. When we analyze your escrow account we will adjust the reserve amount based on the actual bills paid.

Thank you for communicating with us electronically, we appreciate the opportunity to be of assistance.

Hmmmmmm… I love that they mentioned September 22. Too funny.

The PMI line still irks me, but what can you do?

And really, I’d love to know what “criteria” my loan met for the deletion of insurance from the escrow account. I never could get an answer on what criteria I had to meet to drop PMI…

Whatever.

In the end, though, I got what I wanted (a lower payment — lowest since 2004!) and earlier than I’d expected, so that puts a smile on my face.

Happy Thanksgiving!

To semi-regular readers, that’s old news…

Now, the bad news…

I received a letter in the mail over the weekend from an insurance inspection company. (insert threateningly scary fanfare here)

My wife tells me not to worry about it but I’m having a lot of trouble putting it to the back of my mind.

I’m really susceptible to anxiety attacks — basically I stop breathing.

Not entirely, but I essentially bring on an asthma attack (like a stereotypical four-eyed nerd) and, on occasion, I’ll even break out an inhaler.

Yeah, it’s extra dorky and not something I’m proud of.

Most of my anxiety stems from things that I have no control over.

Scratch that.

It comes from things that I have little control over — thankfully not things like a huge decline in the stock market, rather stuff like the possibility of, well, losing my job or having my homeowners policy cancelled (again) which is why this letter is such bad news.

On the bright side, in comparison to my previous carrier, the FAIR Plan, the letter clearly indicates that it will not be an intrusive inspection.

In fact, it even states that I don’t even have to be present…

How about that?

That’s a HUGE improvement over past inspections where they’ve come in and essentially banged on every one of my walls to see if they could damage them or something…

One year, the inspector they sent out had to be pushing 400 lbs and he stomped up and down my basement steps not once, but twice. I was a little worried and, frankly, upset because it seemed to be a little excessive.

No, my house wasn’t built for 400-pound men — and being that I’m not even half that, I never expected to be.

If anything, he should be the one who can’t find insurance…

Okay, I’m getting off-topic…

Really, he was physically trying to break my house.

Further, while inspecting the exterior of the house, he pointed out some crumbling mortar in the brick foundation and then struck the brickwork with his geologist hammer, knocking the face of the brick off.

In shock, unsure of what to do, I said nothing, but seriously, he just struck my house with a pointy hammer.

What the hell is up with that?

Anyway, this one shouldn’t be anything like that but the way this one works, well, I’ve no idea when it will happen or how it turns out. If it happens to be raining the day they come out, they probably won’t even get out of the car…

I just have to sit and wait, then pray, that I don’t get a follow-up letter from the inspection company or the insurance company delivering any bad news.

Based on past experience, if I make it to January without anything, it will be smooth sailing from here on out and I’ll be able to take a deep breath…

And really, I’m trying to tell myself that I’ve got nothing to worry about.

New roof, new siding, new foundation… but who knows, maybe they’ll freak out about a crack in my driveway or a sinkhole in the yard…

Really, what if?

It’s those unlikely “ifs” that are driving me crazy…

Where’s that inhaler?