Is your home owner insurance going up 27% this year?
Is your home owner insurance going up 27% this year?
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.
I am going to call my agent next week and see if I can get a better deal with another company.
Re: Is your home owner insurance going up 27% this year?
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.
My auto went down about $50 I believe and umbrella was roughly the same as last year.
Re: Is your home owner insurance going up 27% this year?
I live in PA and renewed in April. Change was minimal.
Re: Is your home owner insurance going up 27% this year?
Shop around. I am paying $500 less now than when I first bought my house in 2011.
Re: Is your home owner insurance going up 27% this year?
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,
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)
Re: Is your home owner insurance going up 27% this year?
Im in Massachusetts here and mine went up 5%ish.
Re: Is your home owner insurance going up 27% this year?
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.
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.
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Re: Is your home owner insurance going up 27% this year?
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.
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.
Re: Is your home owner insurance going up 27% this year?
Shopping around is the key. Call a few majors and try an insurance agent or two.
Re: Is your home owner insurance going up 27% this year?
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.
Re: Is your home owner insurance going up 27% this year?
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.
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.
Re: Is your home owner insurance going up 27% this year?
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.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.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. |
Favorite song: Sometimes He Whispers Jay Parrack
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Re: Is your home owner insurance going up 27% this year?
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.
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Re: Is your home owner insurance going up 27% this year?
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.
Re: Is your home owner insurance going up 27% this year?
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.
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.
Re: Is your home owner insurance going up 27% this year?
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.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.
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.
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Re: Is your home owner insurance going up 27% this year?
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.
Re: Is your home owner insurance going up 27% this year?
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.Mudpuppy wrote: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.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.
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.
Re: Is your home owner insurance going up 27% this year?
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.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.
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Re: Is your home owner insurance going up 27% this year?
Mid-Atlantic area. Went up 16.8% from 2014 to 2015.
- Ron
- Ron
Re: Is your home owner insurance going up 27% this year?
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
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Re: Is your home owner insurance going up 27% this year?
Mine went up minimally (but I'm not in TX) - Did you ask them why? Did you file any claims last year?
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Re: Is your home owner insurance going up 27% this year?
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.
Re: Is your home owner insurance going up 27% this year?
Just got the bill. Up 14% over last year. In PA.
Re: Is your home owner insurance going up 27% this year?
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)
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)
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Re: Is your home owner insurance going up 27% this year?
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.dicejam wrote:... ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
The surest way to know the future is when it becomes the past.
Re: Is your home owner insurance going up 27% this year?
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.
I changed insurance companies and now have a 44% decrease.
Re: Is your home owner insurance going up 27% this year?
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).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)
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Re: Is your home owner insurance going up 27% this year?
mine went down by 15%.
Re: Is your home owner insurance going up 27% this year?
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 follycheese_breath wrote: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.dicejam wrote:... ideally should one insure for replacement cost + your equity? (i am ignoring the personal liability angle here)
Re: Is your home owner insurance going up 27% this year?
Mudpuppy wrote: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).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)
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?
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Re: Is your home owner insurance going up 27% this year?
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.
Re: Is your home owner insurance going up 27% this year?
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.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?
"The course of history shows that as the government grows, liberty decreases." Thomas Jefferson
Re: Is your home owner insurance going up 27% this year?
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.
My local insurance agent used a value of $150 / ft^2 (square foot), then added 25% for material overhead and inflation.
Re: Is your home owner insurance going up 27% this year?
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.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?
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.
Re: Is your home owner insurance going up 27% this year?
Thank you for posting this. Texas as well.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.
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.