Is your home owner insurance going up 27% this year?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
hmw
Posts: 1246
Joined: Sun Mar 02, 2014 10:44 am

Is your home owner insurance going up 27% this year?

Post by hmw »

Just got my home owner insurance renewal in the mail today. It's going from about $1450 to $1850 next year. A 27% increase! No claim on the policy. 1% deductible. We are in TX. Are you also getting large increase in your home policies in TX this year?

I am going to call my agent next week and see if I can get a better deal with another company.
mw1739
Posts: 1147
Joined: Mon Mar 21, 2011 5:44 pm

Re: Is your home owner insurance going up 27% this year?

Post by mw1739 »

I also received my renewal notice today, but I'm in the Midwest. Went up about $100, from $1600 to $1700. I believe the replacement cost value of my property went up about 1%. I have a $2500 deductible.

My auto went down about $50 I believe and umbrella was roughly the same as last year.
User avatar
AAA
Posts: 1885
Joined: Sat Jan 12, 2008 7:56 am

Re: Is your home owner insurance going up 27% this year?

Post by AAA »

I live in PA and renewed in April. Change was minimal.
rayout
Posts: 368
Joined: Tue May 19, 2009 11:30 am

Re: Is your home owner insurance going up 27% this year?

Post by rayout »

Shop around. I am paying $500 less now than when I first bought my house in 2011.
User avatar
Sheepdog
Posts: 5783
Joined: Tue Feb 27, 2007 2:05 pm
Location: Indiana, retired 1998 at age 65

Re: Is your home owner insurance going up 27% this year?

Post by Sheepdog »

Read this thread which I started a couple of months ago http://www.bogleheads.org/forum/viewtop ... 2&t=162805.
I had a similar insurance situation. My homeowner insurance went up 15.5% this year and 24.3% in 2014. However, you will see in that conversation that I could not find lower insurance quotes from numerous other companies. I wrote then,
As I mentioned in the beginning, my Selective homeowner's insurance rates were increasing dramatically annually from15 to 24% a year in recent years. I obtained quotes directly from companies and thru an independent agent. Quotes (13) were obtained from AARP Hartford, GEICO, Amica, State Farm Mutual, USAA, Acuity, Auto Owners, Hanover, Indiana Farmers, State Auto, Travelers, Allied, and Central. Some quoted rates included the possibility of also adding auto insurance through them so I would get their lowest rates. Selective Insurance still offers my lowest homeowner's rate.
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
shipwreck
Posts: 82
Joined: Mon May 02, 2011 12:55 am
Location: North of the Equator

Re: Is your home owner insurance going up 27% this year?

Post by shipwreck »

Im in Massachusetts here and mine went up 5%ish.
Naismith
Posts: 530
Joined: Sun Sep 14, 2014 2:58 pm

Re: Is your home owner insurance going up 27% this year?

Post by Naismith »

Do you suppose all the flooding in Texas (and subsequent claims) has raised rates?

This certainly happens in Florida after a big storm.

Shopping around helps. I changed companies after a big hurricane because my previous company apparently insured more beachside properties and thus had higher increases.
larryinnewyork
Posts: 114
Joined: Fri Mar 14, 2014 3:46 pm

Re: Is your home owner insurance going up 27% this year?

Post by larryinnewyork »

Several years ago, mine was going to go up 30% (Allstate).
I shopped around and received a 21% decrease (State Farm).

Last year I paid $360 for the year.
Dwelling: 176,000.
Personal Property: 132,000.
Deductable: 1,000.

I'm not complaining, but still shop around.
User avatar
midareff
Posts: 7711
Joined: Mon Nov 29, 2010 9:43 am
Location: Biscayne Bay, South Florida

Re: Is your home owner insurance going up 27% this year?

Post by midareff »

Shopping around is the key. Call a few majors and try an insurance agent or two.
music_man
Posts: 151
Joined: Mon Apr 28, 2014 12:22 pm

Re: Is your home owner insurance going up 27% this year?

Post by music_man »

Shop around. I was with the same insurer for several years, this year the renewal was > $100 from previous so I shopped around. Ended up finding same coverage somewhere else for $200 less.
vveat
Posts: 397
Joined: Sat Dec 24, 2011 2:24 pm

Re: Is your home owner insurance going up 27% this year?

Post by vveat »

In New Jersey ours went up by ~20% two consecutive years. Sandy would explain the first increase, but the next one was annoying.
I am planning to shop around soon, not even wait for renewal time - the problem is we have both home and auto with them and a ticket I got last year may mean I won't get very competitive quotes for the auto. We'll see.
rec7
Posts: 2369
Joined: Tue Oct 28, 2008 7:22 pm

Re: Is your home owner insurance going up 27% this year?

Post by rec7 »

larryinnewyork wrote:Several years ago, mine was going to go up 30% (Allstate).
I shopped around and received a 21% decrease (State Farm).

Last year I paid $360 for the year.
Dwelling: 176,000.
Personal Property: 132,000.
Deductable: 1,000.

I'm not complaining, but still shop around.
That is a great rate. I am in the Midwest but can not come close to that. I am guessing it has been 20 years since we had a bill like that.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack
TexasPenny
Posts: 67
Joined: Mon Oct 28, 2013 9:40 pm
Location: Austin, TX

Re: Is your home owner insurance going up 27% this year?

Post by TexasPenny »

My renewal time was in May so it had nothing to do with recent flooding. Mine also went up about 25% and had been with them 10 years. I called and they said they couldn't do anything about it, it was a statewide adjustment. I was really mad because we have home/car/life ins with them and they wouldn't budge. So I called around and went with a different company. Car insurance was HALF and went from a 6 month policy to a 12 yr policy. For the house insurance it was several hundred cheaper so we decided to add an umbrella policy. Even when I called to cancel and asked if they could meet the new rates, they said no, but try us again in a year and as a new customer you might get better rates. How about giving better rates to your LOYAL customers??? Grr. If you want details, PM me, I'm in Austin.
User avatar
cheese_breath
Posts: 11787
Joined: Wed Sep 14, 2011 7:08 pm

Re: Is your home owner insurance going up 27% this year?

Post by cheese_breath »

Mine in MI went up about 17% last year. But it's still 34% less with Safeco now than it was 2 years ago with AAA .
The surest way to know the future is when it becomes the past.
Topic Author
hmw
Posts: 1246
Joined: Sun Mar 02, 2014 10:44 am

Re: Is your home owner insurance going up 27% this year?

Post by hmw »

OP here.

Update: I called my insurance agent and she did some comparison shopping for me. I was told that my existing policy was the cheapest. The increase was explained to me as "a state wide increase" and "our house is insured as a two storey house". Apparently our house was insured as a single storey house last year, and it was cheaper than a two storey house.
Mudpuppy
Posts: 7409
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Is your home owner insurance going up 27% this year?

Post by Mudpuppy »

hmw wrote:OP here.

Update: I called my insurance agent and she did some comparison shopping for me. I was told that my existing policy was the cheapest. The increase was explained to me as "a state wide increase" and "our house is insured as a two storey house". Apparently our house was insured as a single storey house last year, and it was cheaper than a two storey house.
That seems a little odd.... insuring a house as either one- or two-story based on the lowest rates doesn't seem like the proper way to get coverage. And did she actually give you a list of comparisons or just verbally say that was the cheapest? Without a list, you don't know how exhaustive her comparison shopping was.

If it were me, I would be getting independent quotes from either places like insurance company websites or other independent insurance agents that deal with a wider range (or at least a different range) of insurance companies. There may be something cheaper out there at a good company, but your current agent may not deal with that company.
dolphinsaremammals
Posts: 2094
Joined: Tue Jul 22, 2014 4:18 pm

Re: Is your home owner insurance going up 27% this year?

Post by dolphinsaremammals »

Goodness, mine went down 8% and I didn't even notice until this thread caused me to look it up. It's hard to get homeowner's insurance here on the coast, so each year I'm just glad I don't slide into a horrifying number.
Topic Author
hmw
Posts: 1246
Joined: Sun Mar 02, 2014 10:44 am

Re: Is your home owner insurance going up 27% this year?

Post by hmw »

Mudpuppy wrote:
hmw wrote:OP here.

Update: I called my insurance agent and she did some comparison shopping for me. I was told that my existing policy was the cheapest. The increase was explained to me as "a state wide increase" and "our house is insured as a two storey house". Apparently our house was insured as a single storey house last year, and it was cheaper than a two storey house.
That seems a little odd.... insuring a house as either one- or two-story based on the lowest rates doesn't seem like the proper way to get coverage. And did she actually give you a list of comparisons or just verbally say that was the cheapest? Without a list, you don't know how exhaustive her comparison shopping was.

If it were me, I would be getting independent quotes from either places like insurance company websites or other independent insurance agents that deal with a wider range (or at least a different range) of insurance companies. There may be something cheaper out there at a good company, but your current agent may not deal with that company.
When I bought my home owner policy last year, I did an exhaustive search and called a number of brokers and insurance companies. The policy I bought last year was the cheapest by far. So I wasn't surprised that my current policy is still the cheapest after the 27% increase. I didn't bother spending hours calling different brokers/insurance companies this year. I didn't think I would get anything cheaper. Maybe I should do it next year.
pshonore
Posts: 8212
Joined: Sun Jun 28, 2009 2:21 pm

Re: Is your home owner insurance going up 27% this year?

Post by pshonore »

TexasPenny wrote:My renewal time was in May so it had nothing to do with recent flooding. Mine also went up about 25% and had been with them 10 years. I called and they said they couldn't do anything about it, it was a statewide adjustment. I was really mad because we have home/car/life ins with them and they wouldn't budge. So I called around and went with a different company. Car insurance was HALF and went from a 6 month policy to a 12 yr policy. For the house insurance it was several hundred cheaper so we decided to add an umbrella policy. Even when I called to cancel and asked if they could meet the new rates, they said no, but try us again in a year and as a new customer you might get better rates. How about giving better rates to your LOYAL customers??? Grr. If you want details, PM me, I'm in Austin.
Since flooding is not covered in most policies, that would not explain it. However seems like there were a lot of tornados, etc in Texas, Olahoma, and the rest of the South in the past couple of years. Those can be very expensive claims (total loss including contents and clean up) and they add up fast.
Ron
Posts: 6972
Joined: Fri Feb 23, 2007 6:46 pm
Location: Allentown–Bethlehem–Easton, PA-NJ Metropolitan Statistical Area

Re: Is your home owner insurance going up 27% this year?

Post by Ron »

Mid-Atlantic area. Went up 16.8% from 2014 to 2015.

- Ron
User avatar
deanbrew
Posts: 1500
Joined: Wed Jul 21, 2010 12:05 pm
Location: The Keystone State

Re: Is your home owner insurance going up 27% this year?

Post by deanbrew »

My latest renewal had a 16% increase in homeowners insurance, which followed an 11% increase last year. I shopped around and changed companies and am paying 25 percent less than my former company wanted. It pays to shop around every two or three years, I've found.
"The course of history shows that as the government grows, liberty decreases." Thomas Jefferson
User avatar
SmileyFace
Posts: 9186
Joined: Wed Feb 19, 2014 9:11 am

Re: Is your home owner insurance going up 27% this year?

Post by SmileyFace »

Mine went up minimally (but I'm not in TX) - Did you ask them why? Did you file any claims last year?
User avatar
whatusername?
Posts: 641
Joined: Wed Feb 18, 2015 5:08 pm

Re: Is your home owner insurance going up 27% this year?

Post by whatusername? »

I'm in Texas and saw the same type of bump in premiums. I shopped the coverage, but the rates were high across the board. I have separate deductibles for wind/hail damage and other losses, so I looked at adjusting the other losses deductible. Increasing it by $1K saved about $280 in premium increase (holding the increase to $40), so that's what I did.
Cheyenne
Posts: 548
Joined: Sun Jun 14, 2015 6:46 am

Re: Is your home owner insurance going up 27% this year?

Post by Cheyenne »

Just got the bill. Up 14% over last year. In PA.
dicejam
Posts: 26
Joined: Fri Jul 24, 2015 10:07 am

Re: Is your home owner insurance going up 27% this year?

Post by dicejam »

here in NoVA, for my house, the bill is virtually the same (infact few $ lower than year before) My property taxes have gone up by 6% on avg for past 2-3 years.

unrelated to this query but reminds me of other question i have had for some time...assuming that one owes less than the replacement value of the house, where do you go to get a reliable estimate of your house's replacement cost? ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
User avatar
cheese_breath
Posts: 11787
Joined: Wed Sep 14, 2011 7:08 pm

Re: Is your home owner insurance going up 27% this year?

Post by cheese_breath »

dicejam wrote:... ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
No. That's double dipping. Replacement cost is what it should cost to replace your house exactly like it was..i.e. to make you whole. This includes your equity and the lender's equity.
The surest way to know the future is when it becomes the past.
User avatar
LadyGeek
Site Admin
Posts: 95696
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: Is your home owner insurance going up 27% this year?

Post by LadyGeek »

Mine went up 20%, then I found this thread: Longtime Insurance Customers Get Ripped [overcharged]

I changed insurance companies and now have a 44% decrease.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Mudpuppy
Posts: 7409
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Is your home owner insurance going up 27% this year?

Post by Mudpuppy »

dicejam wrote:unrelated to this query but reminds me of other question i have had for some time...assuming that one owes less than the replacement value of the house, where do you go to get a reliable estimate of your house's replacement cost? ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
Replacement costs are independent of how much you owe on the mortgage. Replacement costs are calculated based construction costs in the area, i.e. how much it would take to demolish the remnants of the destroyed house and then build an identical replacement house on the plot. This means the replacement value is going to be different than both market value (that's what people will pay for it, not how much it costs to construct) and new home construction (new home construction doesn't have to demolish a destroyed home first).
TradingPlaces
Posts: 1245
Joined: Sun Nov 09, 2014 12:19 pm
Location: 30.286029, -97.530011

Re: Is your home owner insurance going up 27% this year?

Post by TradingPlaces »

mine went down by 15%.
dicejam
Posts: 26
Joined: Fri Jul 24, 2015 10:07 am

Re: Is your home owner insurance going up 27% this year?

Post by dicejam »

cheese_breath wrote:
dicejam wrote:... ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
No. That's double dipping. Replacement cost is what it should cost to replace your house exactly like it was..i.e. to make you whole. This includes your equity and the lender's equity.
duh me! that's right. thanks for setting it right! i guess i was thinking outstanding loan + equity with a convoluted logic that if insured for value that included one's equity then in a dire circumstance you don't lose it. But i see my folly :)
dicejam
Posts: 26
Joined: Fri Jul 24, 2015 10:07 am

Re: Is your home owner insurance going up 27% this year?

Post by dicejam »

Mudpuppy wrote:
dicejam wrote:unrelated to this query but reminds me of other question i have had for some time...assuming that one owes less than the replacement value of the house, where do you go to get a reliable estimate of your house's replacement cost? ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
Replacement costs are independent of how much you owe on the mortgage. Replacement costs are calculated based construction costs in the area, i.e. how much it would take to demolish the remnants of the destroyed house and then build an identical replacement house on the plot. This means the replacement value is going to be different than both market value (that's what people will pay for it, not how much it costs to construct) and new home construction (new home construction doesn't have to demolish a destroyed home first).

thanks Mudpuppy to set the record straight :) i was having a convoluted logic, which often fails, atleast in my case. Anyway though, what is the best resource to figure out a reasonably good number for replacement cost? you think it is available somewhere or one needs to hire engineering firm?
HoosierJim
Posts: 987
Joined: Wed Mar 24, 2010 7:11 pm

Re: Is your home owner insurance going up 27% this year?

Post by HoosierJim »

The hail damage fraud industry that has sprung up in the last 10 years adds cost all homeowner insurance policies. I have heard many people claim they have a new roof due to hail damage. It appears that home owners insurance has become a sinking fund for roof replacement.
User avatar
deanbrew
Posts: 1500
Joined: Wed Jul 21, 2010 12:05 pm
Location: The Keystone State

Re: Is your home owner insurance going up 27% this year?

Post by deanbrew »

dicejam wrote:thanks Mudpuppy to set the record straight :) i was having a convoluted logic, which often fails, atleast in my case. Anyway though, what is the best resource to figure out a reasonably good number for replacement cost? you think it is available somewhere or one needs to hire engineering firm?
You don't need to hire anybody to get a reasonable estimate for insurance purposes. Do an internet search for "home construction cost estimator" and you will see quite a few sources for free estimates. These will get you close enough. True "insurance value" is a bit trickier, as underground pipes and foundations seldom get destroyed in a fire, for example, which lowers the reconstruction cost. But you have to raze and remove damaged walls and components, which raises the cost. All in all, any estimate is just that - and estimate. Most HO insurance is written with enough wiggle room to allow for variances.
"The course of history shows that as the government grows, liberty decreases." Thomas Jefferson
User avatar
LadyGeek
Site Admin
Posts: 95696
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: Is your home owner insurance going up 27% this year?

Post by LadyGeek »

Buried in Longtime Insurance Customers Get Ripped [overcharged], you'll find values for home construction costs. It's based on the house square footage.

My local insurance agent used a value of $150 / ft^2 (square foot), then added 25% for material overhead and inflation.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Mudpuppy
Posts: 7409
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Is your home owner insurance going up 27% this year?

Post by Mudpuppy »

dicejam wrote:thanks Mudpuppy to set the record straight :) i was having a convoluted logic, which often fails, atleast in my case. Anyway though, what is the best resource to figure out a reasonably good number for replacement cost? you think it is available somewhere or one needs to hire engineering firm?
Are you concerned that the insurance company is inflating the replacement cost to get higher premiums? Because in most cases, they're going to have access to more current data to calculate a reasonable price for a house of your square footage and construction type. It's very regional, and even a construction or engineering firm in your town might not have the most current data.

Many people feel the replacement cost seems high because they compare it to market value or new home construction. That's not the right comparison. In addition to my original points, the insurance company also accounts for the fact that a single house replacement is far more expensive than building a subdivision of similar houses since raw construction materials will not have the same economics of scale. Depending on the type of insurance, they may add a bit of cushion to deal with spikes in costs of materials following a natural disaster which affects many homes.
easye418
Posts: 361
Joined: Wed Apr 22, 2015 8:04 am

Re: Is your home owner insurance going up 27% this year?

Post by easye418 »

hmw wrote:Just got my home owner insurance renewal in the mail today. It's going from about $1450 to $1850 next year. A 27% increase! No claim on the policy. 1% deductible. We are in TX. Are you also getting large increase in your home policies in TX this year?

I am going to call my agent next week and see if I can get a better deal with another company.
Thank you for posting this. Texas as well.

Mine went from $1550 to $1800. Up +16% here.

Did you end up getting a better deal?

Edit: Just read your future posts.... Can you PM me your broker and who your current policy is with? I have a 2% deductible.
Post Reply