I had been considering making a thread about my current run arounds with Sentry and my business policy, and the recent thread on a new start shop needing insurance made me decide to post. That combined with the post in the General section about the guy losing everything and having difficulties with insurance.
I signed my current policy in September of 2020, the policy was $1800/yr. This covered my 1000 sq ft building, machinery comprised mostly of old manuals, but primarily a Brother S1000. Building was $177k, and personal property was $250k. Both more than I wanted, but "minimums" according to them. No product liability. September of last year my policy renewed, for $2800.
The insurance company called a few weeks after the renewal to check in and see if I needed to make any changes. I told them that the continued raises every year were not acceptable and to cancel my policy. Of course, since my policy had just renewed, they couldn't cancel the policy. If they canceled the policy there would be a fee. Of course there is! The very nice, very helpful woman on the phone asked if it would be alright if she took a look at my policy and see if there were things that could be adjusted to reduce the rates.
The further I dig into my policy now, the more criminal and corrupt I view insurance agencies. Today, my building is insured for $377k, and personal property $350k. Their justification is that due to inflation, that is what my shop and contents would currently cost to replace. I called my builder and asked what my building would cost today. Less than $100k, $125k with plenty of margin. Call the insurance person back, and they CANNOT insure my building for less, because I CANNOT build a building for less. She said she spoke at length with the underwriter about this, and he would not allow the building to be insured for less than $351 a sq ft!!!! I asked her to provide me a letter that Sentry will write me a check for $377k if I have a total loss. She won't, they won't.
When I signed my policy I was listed as a Machine Shop. Today I am listed as an "Aerosol Spray Mfg". She has no idea. She said a federal agency classifies businesses and they changed my "type". She swears it has absolutely no bearing on my policy. There were several other aspects that were changed, or information that no one there can account for. Of course, no one who initially made my policy works there.
My building was originally listed as Masonry construction, when it was insured for $177k. They don't know why it was listed as masonry. I notified them as soon as I saw it, and they changed it. She said that was the reason I saw such an increase for cost. Now that it is a pole building, the insurance is much higher. I said, no, you have that backwards, a Masonry construction costs significantly more than a pole building, or, is it because the building is a higher risk because it is a pole building? She said she doesn't know.
I asked what it would cost to cancel the policy. What would the fee be? They can't invoice you until they cancel the policy! No way of knowing the cost until you cancel the policy.
Now they want to do an "in depth financial audit" and come out and thoroughly inspect the building as well as send out an auditor.
I told her to audit themselves.
I signed my current policy in September of 2020, the policy was $1800/yr. This covered my 1000 sq ft building, machinery comprised mostly of old manuals, but primarily a Brother S1000. Building was $177k, and personal property was $250k. Both more than I wanted, but "minimums" according to them. No product liability. September of last year my policy renewed, for $2800.
The insurance company called a few weeks after the renewal to check in and see if I needed to make any changes. I told them that the continued raises every year were not acceptable and to cancel my policy. Of course, since my policy had just renewed, they couldn't cancel the policy. If they canceled the policy there would be a fee. Of course there is! The very nice, very helpful woman on the phone asked if it would be alright if she took a look at my policy and see if there were things that could be adjusted to reduce the rates.
The further I dig into my policy now, the more criminal and corrupt I view insurance agencies. Today, my building is insured for $377k, and personal property $350k. Their justification is that due to inflation, that is what my shop and contents would currently cost to replace. I called my builder and asked what my building would cost today. Less than $100k, $125k with plenty of margin. Call the insurance person back, and they CANNOT insure my building for less, because I CANNOT build a building for less. She said she spoke at length with the underwriter about this, and he would not allow the building to be insured for less than $351 a sq ft!!!! I asked her to provide me a letter that Sentry will write me a check for $377k if I have a total loss. She won't, they won't.
When I signed my policy I was listed as a Machine Shop. Today I am listed as an "Aerosol Spray Mfg". She has no idea. She said a federal agency classifies businesses and they changed my "type". She swears it has absolutely no bearing on my policy. There were several other aspects that were changed, or information that no one there can account for. Of course, no one who initially made my policy works there.
My building was originally listed as Masonry construction, when it was insured for $177k. They don't know why it was listed as masonry. I notified them as soon as I saw it, and they changed it. She said that was the reason I saw such an increase for cost. Now that it is a pole building, the insurance is much higher. I said, no, you have that backwards, a Masonry construction costs significantly more than a pole building, or, is it because the building is a higher risk because it is a pole building? She said she doesn't know.
I asked what it would cost to cancel the policy. What would the fee be? They can't invoice you until they cancel the policy! No way of knowing the cost until you cancel the policy.
Now they want to do an "in depth financial audit" and come out and thoroughly inspect the building as well as send out an auditor.
I told her to audit themselves.
