What is going on with the home insurance rates?

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flyingaway
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What is going on with the home insurance rates?

Post by flyingaway » Wed Oct 25, 2017 1:35 pm

I just got a renewal notice from AAA for my home insurance for next year. It goes up from around $1,900 to $2,700, an increase of more than 40%. Note that I have not had any claims for the past 8 years, at least.

So I called another insurance company to get a quote, which is $5,900.

I am still waiting for the renewal notice for my car insurance.

How can I survive on the 4% SWR???? (I was worrying about the health insurance rates. It looks like I have to worry about all insurance rates.)

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Blueskies123
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Re: What is going on with the home insurance rates?

Post by Blueskies123 » Wed Oct 25, 2017 1:43 pm

Do you life in a hurricane, flood, fire, earthquake, tornado prone area? I am kind of kidding because that covers almost everyone. Here in South Florida the cost of rebuilding, litigation, and fraud is starting to make HOI UN-affordable. I suggest you keep shopping. I know when State Farm wanted out of SF they increase their rate 20-30% a year but so many people kept renewing they just dropped everyone.

Rupert
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Re: What is going on with the home insurance rates?

Post by Rupert » Wed Oct 25, 2017 1:44 pm

Hurricanes, wildfires, floods, etc. It was a historic year for natural disasters. It doesn't matter if you didn't file any claims. Millions of other people did, and the insurance companies have to recoup their losses somehow.

flyingaway
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Re: What is going on with the home insurance rates?

Post by flyingaway » Wed Oct 25, 2017 1:54 pm

I live in an area with no hurricane, no wildfire, no flood, (no close-by tornado or earthquake yet), in a middle sized city of U.S.

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dm200
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Re: What is going on with the home insurance rates?

Post by dm200 » Wed Oct 25, 2017 1:58 pm

flyingaway wrote:
Wed Oct 25, 2017 1:35 pm
I just got a renewal notice from AAA for my home insurance for next year. It goes up from around $1,900 to $2,700, an increase of more than 40%. Note that I have not had any claims for the past 8 years, at least.
So I called another insurance company to get a quote, which is $5,900.
I am still waiting for the renewal notice for my car insurance.
How can I survive on the 4% SWR???? (I was worrying about the health insurance rates. It looks like I have to worry about all insurance rates.)
Is it possible that the increase is, in part, due to higher valuation (replacement value) of the house? Another possibility, since most insurance matters are state regulated, is that the state has allowed some kind of "justified" rate increases.

Have you spoek to any friends or neighbors about their homeowners insurance rates?

Jack FFR1846
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Re: What is going on with the home insurance rates?

Post by Jack FFR1846 » Wed Oct 25, 2017 2:02 pm

Did you talk with your insurance agent to see why there's such a big jump?
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Jim180
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Re: What is going on with the home insurance rates?

Post by Jim180 » Wed Oct 25, 2017 2:05 pm

Rupert wrote:
Wed Oct 25, 2017 1:44 pm
Hurricanes, wildfires, floods, etc. It was a historic year for natural disasters. It doesn't matter if you didn't file any claims. Millions of other people did, and the insurance companies have to recoup their losses somehow.
I'm sure that's the reason the insurance companies would give but shouldn't they have a surplus of funds available from years there are few natural disasters? What happens to all that money they DON'T have to pay out those years?

runner540
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Re: What is going on with the home insurance rates?

Post by runner540 » Wed Oct 25, 2017 2:51 pm

flyingaway wrote:
Wed Oct 25, 2017 1:35 pm
I just got a renewal notice from AAA for my home insurance for next year. It goes up from around $1,900 to $2,700, an increase of more than 40%. Note that I have not had any claims for the past 8 years, at least.

So I called another insurance company to get a quote, which is $5,900.

I am still waiting for the renewal notice for my car insurance.

How can I survive on the 4% SWR???? (I was worrying about the health insurance rates. It looks like I have to worry about all insurance rates.)
Can you increase your deductible to lower the rate?

Replacement costs are probably part of this: construction materials and labor have gotten more expensive. Good luck.

Brewman
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Re: What is going on with the home insurance rates?

Post by Brewman » Wed Oct 25, 2017 3:52 pm

Did you freeze your credit files and they can longer pull them?

JBTX
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Re: What is going on with the home insurance rates?

Post by JBTX » Wed Oct 25, 2017 4:39 pm

flyingaway wrote:
Wed Oct 25, 2017 1:35 pm
I just got a renewal notice from AAA for my home insurance for next year. It goes up from around $1,900 to $2,700, an increase of more than 40%. Note that I have not had any claims for the past 8 years, at least.

So I called another insurance company to get a quote, which is $5,900.

I am still waiting for the renewal notice for my car insurance.

How can I survive on the 4% SWR???? (I was worrying about the health insurance rates. It looks like I have to worry about all insurance rates.)
If an increase home insurance blows away your retirement plans then you need a new strategy.

mbres60
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Re: What is going on with the home insurance rates?

Post by mbres60 » Wed Oct 25, 2017 4:52 pm

Brewman wrote:
Wed Oct 25, 2017 3:52 pm
Did you freeze your credit files and they can longer pull them?
I just froze my credit files. Will my insurance renewals be affected if I stay with the same company? Oh, in my state I don' think they can use your credit for homeowners insurance.

Also, I use AAA and already received my homeowners and auto renewal. One went down and the other up. Overall it was about $100 or less so I didn't check around.

Colorado13
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Re: What is going on with the home insurance rates?

Post by Colorado13 » Wed Oct 25, 2017 8:27 pm

Think about the recent weather: hurricanes, floods, fires, hail, etc. Insurance companies have to price for these events, which are becoming more frequent and more severe. Many (maybe all?) of us will bear the cost of these events by paying higher premiums.

In Colorado, the answer is simple:
1. Lots of hail.
2. My insurer told me that roof replacement costs are three times more expensive in 2017 than in 2010.

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F150HD
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Re: What is going on with the home insurance rates?

Post by F150HD » Wed Oct 25, 2017 8:38 pm

Rupert wrote:
Wed Oct 25, 2017 1:44 pm
Hurricanes, wildfires, floods, etc. It was a historic year for natural disasters. It doesn't matter if you didn't file any claims. Millions of other people did, and the insurance companies have to recoup their losses somehow.
+1 passed on to customer.

JBTX
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Re: What is going on with the home insurance rates?

Post by JBTX » Wed Oct 25, 2017 10:16 pm

Brewman wrote:
Wed Oct 25, 2017 3:52 pm
Did you freeze your credit files and they can longer pull them?
Interesting point I hadn’t thought of. For years I had progressive auto insurance and they definitely used your credit data in rate determination. After I had a couple of refi hard credit pulls and opened a new credit card my auto insurance went up substantially. I called progressive and they told me that was why. Even talked directly with their credit department. After that happened again a few years later I finally left
Progressive.

JBTX
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Re: What is going on with the home insurance rates?

Post by JBTX » Wed Oct 25, 2017 10:23 pm

Colorado13 wrote:
Wed Oct 25, 2017 8:27 pm
Think about the recent weather: hurricanes, floods, fires, hail, etc. Insurance companies have to price for these events, which are becoming more frequent and more severe. Many (maybe all?) of us will bear the cost of these events by paying higher premiums.

In Colorado, the answer is simple:
1. Lots of hail.
2. My insurer told me that roof replacement costs are three times more expensive in 2017 than in 2010.
As to 2, do you mean total payouts? I had a new roof due to hail around 2011 and one this year it may have been 10-20% higher.

carolinaman
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Re: What is going on with the home insurance rates?

Post by carolinaman » Thu Oct 26, 2017 8:08 am

I have received quotes from 3 companies for homeowners, auto and umbrella. My current insurer, State Farm, asked me to call after 11/1 to get current rates. But based upon what I have so far, there is not big jump in rates in NC.

rjlusk
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Re: What is going on with the home insurance rates?

Post by rjlusk » Thu Oct 26, 2017 8:31 am

I've had Liberty Mutual via Geico for the last 2 years for primary residence in IL suburbs. Last October my annual pmt was 1,125 and I am due to make the next payment this week, which has now jumped to 1,305 (that's +$180 or a 16% increase). I've never filed a claim, and actually added an additional policy for my deceased father's home in trust this year, which was supposed to qualify me for additional discounts. I'm quite sure the 'replacement' cost of your dwelling increases over time which adds a slight increase, but no way 16% in one year! In my area of Illinois, aside from a tornado or hail damage, it is uncommon to have a hurricane, earthquake, flood (in my area), or wildfire. Relatively safe from most natural disasters.

Logging in online, Liberty Mutual says I can take advantage of paperless statements for an 'up to 3% discount'. I'm going to call today and will report back on the rate increase rational.
Before Ditka was traded to the Eagles in 1967 basically because of a contract squabble, he famously said Halas "throws around nickels like manhole covers."

Rupert
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Re: What is going on with the home insurance rates?

Post by Rupert » Thu Oct 26, 2017 8:41 am

The rate increases will often appear to be random and irrational to any individual policyholder. Let's say you have an HO policy with Liberty Mutual. Perhaps there were no natural disasters in your region last year but Liberty Mutual was overexposed in a region of the country where there was a big costly natural disaster. The regulatory agencies in the state or states where the disaster occurred will probably allow Liberty Mutual to raise rates there the year following the disaster, but perhaps not enough to cover the cost of the disaster. So Liberty Mutual has to spread the cost over a broader area, to areas not affected by the disaster. Let's say you have a policy with Alfa instead. Alfa was not overexposed in the area affected by the natural disaster. So Alfa is able to cover the cost of the disaster just by raising rates in the area actually affected by the disaster. Point being: The rate increases are always rational from the insurance company's point of view but often not from a policyholder's point of view, and it's not always easy to ascertain why a company raised rates (you'd have to know in which regions the company is overexposed, etc.).

mouses
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Re: What is going on with the home insurance rates?

Post by mouses » Thu Oct 26, 2017 8:55 am

Look at the newspaper. Who do you think is paying out for those catastrophes?

This is only going to get worse, in my opinion. I will omit a discussion of why there are so many natural disasters and those that happen are generally getting worse, so as to not get this post deleted, but it is clear that at some point the system is going to break, and there will simply not be enough money in the country to help people recover from these. Flood insurance is only the beginning.

chuckb84
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Re: What is going on with the home insurance rates?

Post by chuckb84 » Thu Oct 26, 2017 9:06 am

flyingaway wrote:
Wed Oct 25, 2017 1:35 pm
I just got a renewal notice from AAA for my home insurance for next year. It goes up from around $1,900 to $2,700, an increase of more than 40%. Note that I have not had any claims for the past 8 years, at least.

So I called another insurance company to get a quote, which is $5,900.

I am still waiting for the renewal notice for my car insurance.

How can I survive on the 4% SWR???? (I was worrying about the health insurance rates. It looks like I have to worry about all insurance rates.)
Just get some other quotes. Progressive raised my auto rates because---and this is almost an exact quote---"There are a lot of bad drivers in your state", so I called Geico and switched everything, saving almost $2000/year. I guess Geico thinks I'm responsible for MY driving record, not those of my neighbors.

Also, I think they -all- tick the rates up yearly because most people are reluctant to switch or just don't won't take the time/trouble to do it. I intend to shop around every year now.

ERISA Stone
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Re: What is going on with the home insurance rates?

Post by ERISA Stone » Thu Oct 26, 2017 9:11 am

Colorado13 wrote:
Wed Oct 25, 2017 8:27 pm
Think about the recent weather: hurricanes, floods, fires, hail, etc. Insurance companies have to price for these events, which are becoming more frequent and more severe. Many (maybe all?) of us will bear the cost of these events by paying higher premiums.

In Colorado, the answer is simple:
1. Lots of hail.
2. My insurer told me that roof replacement costs are three times more expensive in 2017 than in 2010.
#2 was the reason I was given for rates jumping up approximately 50% a few years back. We get a lot of spring storms in my area and when you drive through neighborhoods, it looks like everyone has a new roof.

rjlusk
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Re: What is going on with the home insurance rates?

Post by rjlusk » Thu Oct 26, 2017 9:11 am

rjlusk wrote:
Thu Oct 26, 2017 8:31 am
I've had Liberty Mutual via Geico for the last 2 years for primary residence in IL suburbs. Last October my annual pmt was 1,125 and I am due to make the next payment this week, which has now jumped to 1,305 (that's +$180 or a 16% increase). I've never filed a claim, and actually added an additional policy for my deceased father's home in trust this year, which was supposed to qualify me for additional discounts. I'm quite sure the 'replacement' cost of your dwelling increases over time which adds a slight increase, but no way 16% in one year! In my area of Illinois, aside from a tornado or hail damage, it is uncommon to have a hurricane, earthquake, flood (in my area), or wildfire. Relatively safe from most natural disasters.

Logging in online, Liberty Mutual says I can take advantage of paperless statements for an 'up to 3% discount'. I'm going to call today and will report back on the rate increase rational.
OK - So i called and Liberty Mutual they said the 16% increase was due to a number of factors, but they couldn't give me a line item breakdown of how much $ for each category. The response was: expiring discounts (like new homeowners discount), a flat statewide increase in IL in premium imposed by Liberty Mutual, and inflation protection endorsement which increased dwelling protection +$6,000

I had an underwriter search a few other carriers and all came back +200 to +300$ more expensive. So if I stay with Geico, Liberty Mutual is their cheapest partner.

Time to shop around. I hear State Farm, Progressive, Amica could all be options to try. Then the next question is for the $ i'm saving by moving my HO insurance to another company, how many additional 'multi-policy' discounts will I lose at Geico on my auto and umbrella for dropping my HO with them.

Fun fun fun!
Before Ditka was traded to the Eagles in 1967 basically because of a contract squabble, he famously said Halas "throws around nickels like manhole covers."

simple man
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Re: What is going on with the home insurance rates?

Post by simple man » Thu Oct 26, 2017 9:16 am

Ditto. Our homeowners went up an insane amount! I could not believe it and the agent was not very helpful. We had Geico for car insurance so asked them. Their price was like 30% of the other quote! A normal amount. The agent says Geico digs deeper into the underwriting info and does not just tag you by county like others do. Not sure if that is true or not, but the dollars dont lie. (I am relaying info, not plugging Geico. Point is, you have to go get a bunch of quotes. The big guys depend on you sleeping at the wheel...)

EDIT- Geico did not put us with Liberty, but some other mutual company (i think it is theirs) - on a standard state form policy.

whomever
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Re: What is going on with the home insurance rates?

Post by whomever » Thu Oct 26, 2017 9:20 am

I guess Geico thinks I'm responsible for MY driving record, not those of my neighbors.
Do you have Uninsured Coverage?

I've been in 4 or 5 accidents, none of them my fault (and not avoidable by defensive driving, e.g. rear ended 60 seconds after coming to a stop at a red light). Only one of the other drivers had insurance. So in my case, unfortunately, the insurer had pretty good reasons for caring how my fellow motorists drive.

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Blueskies123
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Re: What is going on with the home insurance rates?

Post by Blueskies123 » Thu Oct 26, 2017 9:45 am

Because of our huge population in disaster prone areas and seemingly higher frequency of disasters most roofers and repair out fits have all learned they can easily double and even triple rates for a year to two after a disaster. Lawyers have then sued to make sure insurance companies have paid the double rates. Therefor everyone's rates go up.
I am not sure what the solution is other than to move but many people will not or cannot move, I suspect some people are dropping insurance only to be ruined.

new2bogle
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Re: What is going on with the home insurance rates?

Post by new2bogle » Thu Oct 26, 2017 9:54 am

Ditto! Amica raised HO insurance AND had about a 70% lower dividend check this year. They specifically cited an increase in Texas home claims as the reason. (no HO ins claim from me)

flyingaway
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Re: What is going on with the home insurance rates?

Post by flyingaway » Thu Oct 26, 2017 7:46 pm

Is there anyone thinking calling Geico might help?

Longtermgrowth
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Re: What is going on with the home insurance rates?

Post by Longtermgrowth » Fri Oct 27, 2017 1:04 am

flyingaway wrote:
Thu Oct 26, 2017 7:46 pm
Is there anyone thinking calling Geico might help?
I've found that the homeowners policy quotes from Geico aren't very competitive compared to some other companies, even after factoring in a discount because of having auto insurance with them. Of course your area may vary, but taking the time to get quotes from a number of companies may prove beneficial.
Amica was actually one of the lowest rates for my area on both home and auto, but only if I combined the policies with them compared to the current cheapest separate policies I could find (I checked combined policies with various companies too)...

I'll be keeping a close eye on my renewal policy this time. If I feel things are getting out of hand, making sure my dwelling limit hasn't been upgraded substantially above true cost to rebuild, along with getting quotes from other companies, are among the first things I'll do.

Grt2bOutdoors
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Re: What is going on with the home insurance rates?

Post by Grt2bOutdoors » Fri Oct 27, 2017 6:36 am

rjlusk wrote:
Thu Oct 26, 2017 8:31 am
I've had Liberty Mutual via Geico for the last 2 years for primary residence in IL suburbs. Last October my annual pmt was 1,125 and I am due to make the next payment this week, which has now jumped to 1,305 (that's +$180 or a 16% increase). I've never filed a claim, and actually added an additional policy for my deceased father's home in trust this year, which was supposed to qualify me for additional discounts. I'm quite sure the 'replacement' cost of your dwelling increases over time which adds a slight increase, but no way 16% in one year! In my area of Illinois, aside from a tornado or hail damage, it is uncommon to have a hurricane, earthquake, flood (in my area), or wildfire. Relatively safe from most natural disasters.

Logging in online, Liberty Mutual says I can take advantage of paperless statements for an 'up to 3% discount'. I'm going to call today and will report back on the rate increase rational.
Liberty Mutual was impacted in a noticeable way down in Texas and Florida. The increase in home insurance rates had to have been approved by your state regulator. Btw, i recently shopped for home insurance, Liberty Mutual came in high on both home and auto insurance. I stayed with my current insurer.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
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Re: What is going on with the home insurance rates?

Post by Grt2bOutdoors » Fri Oct 27, 2017 6:38 am

flyingaway wrote:
Thu Oct 26, 2017 7:46 pm
Is there anyone thinking calling Geico might help?
No. You should solicit the services of an independent insurance broker. Let them shop for you.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Rupert
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Re: What is going on with the home insurance rates?

Post by Rupert » Fri Oct 27, 2017 6:58 am

Grt2bOutdoors wrote:
Fri Oct 27, 2017 6:38 am
flyingaway wrote:
Thu Oct 26, 2017 7:46 pm
Is there anyone thinking calling Geico might help?
No. You should solicit the services of an independent insurance broker. Let them shop for you.
+1. Geico isn't even in the business of selling HO policies in my region. I assume that's the case in other regions of the country (the regions most likely impacted by natural disasters) as well.

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dm200
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Re: What is going on with the home insurance rates?

Post by dm200 » Fri Oct 27, 2017 7:18 am

Depending on state, I understand that many types of insurance (HO, auto, etc.) may be affected by the insured's credit score. I might check that out as well.

I also know that, in our case in Virginia, having auto and HO from the same company (State Farm) seems to result in much lower premiums.

Frisco Kid
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Re: What is going on with the home insurance rates?

Post by Frisco Kid » Fri Oct 27, 2017 7:36 am

HO policy with Farmers up 12% to $1240. Also have 4 cars insured with them for maximum discounts. I suspect they will have large losses due to the recent Northern California fires which destroyed nearly 6000 homes so anticipate another increase for next year

bberris
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Re: What is going on with the home insurance rates?

Post by bberris » Fri Oct 27, 2017 7:44 am

Labor and material shortages have raised repair and reconstruction prices.

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lthenderson
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Re: What is going on with the home insurance rates?

Post by lthenderson » Fri Oct 27, 2017 7:57 am

Whenever I read these type of posts, I am thankful I am insured with a company that apparently nobody else on this forum uses, or at least I have never seen a post saying it other than my responses. I've been with them over 25 years and in all that time, my rates have probably only increased 50% total. I'm pretty sure I started out paying around $600/year for homeowners insurance and I'm currently paying around $1200 per year. I've also had my credit frozen for nearly three years and I don't think my rates have gone up in the last five years since we first insured this house. I use Farm Bureau Insurance for what it is worth.

letsgobobby
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Re: What is going on with the home insurance rates?

Post by letsgobobby » Fri Oct 27, 2017 8:45 am

lthenderson wrote:
Fri Oct 27, 2017 7:57 am
I've been with them over 25 years and in all that time, my rates have probably only increased 50% total. I'm pretty sure I started out paying around $600/year for homeowners insurance and I'm currently paying around $1200 per year.
$600 -> $1200 = 100% increase, not 50%.
Last edited by letsgobobby on Fri Oct 27, 2017 12:16 pm, edited 1 time in total.

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lthenderson
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Re: What is going on with the home insurance rates?

Post by lthenderson » Fri Oct 27, 2017 9:25 am

letsgobobby wrote:
Fri Oct 27, 2017 8:45 am
lthenderson wrote:
Fri Oct 27, 2017 7:57 am
I've been with them over 25 years and in all that time, my rates have probably only increased 50% total. I'm pretty sure I started out paying around $600/year for homeowners insurance and I'm currently paying around $1200 per year.
$600 -> $100 = 100% increase, not 50%.
Thanks for correcting my crappy math. Still 100% increase over 25 years is pretty good.

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Re: What is going on with the home insurance rates?

Post by blmarsha123 » Fri Oct 27, 2017 12:41 pm

dm200 wrote:
Fri Oct 27, 2017 7:18 am
Depending on state, I understand that many types of insurance (HO, auto, etc.) may be affected by the insured's credit score. I might check that out as well. <snip>
This is exactly what happened to me this fall. Both auto (20%) and HO (30%) increases were due to something called the Insurance Score, which is apparently derived from the credit score. Try as I might (countless phone calls, e-mails, etc. with insurer, Lexis/Nexis, TransUnion), I could never find out exactly what caused the Insurance Score to go down (in my case, about 5% drop between 2014 (the previous pull) and 2017). One person told me that in my case, there were two factors: (1) Number of open credit cards; and (2) Lost/stolen credit card. But that was denied by another person in a subsequent call. Anyway, (what I was told by Lexis/Nexis) the Insurance Score is supposed to predict your ability to make future payments, and is not (solely) based on your credit or payment history. So you could have as in my case, Excellent credit scores across the board and still have a (not excellent?) Insurance Score.

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dm200
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Re: What is going on with the home insurance rates?

Post by dm200 » Fri Oct 27, 2017 12:50 pm

lthenderson wrote:
Fri Oct 27, 2017 9:25 am
letsgobobby wrote:
Fri Oct 27, 2017 8:45 am
lthenderson wrote:
Fri Oct 27, 2017 7:57 am
I've been with them over 25 years and in all that time, my rates have probably only increased 50% total. I'm pretty sure I started out paying around $600/year for homeowners insurance and I'm currently paying around $1200 per year.
$600 -> $100 = 100% increase, not 50%.
Thanks for correcting my crappy math. Still 100% increase over 25 years is pretty good.
In my observation and experience, do not draw a conclusion or take hasty action over just a one year change. Look, instead, at the overall trend and history.

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dm200
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Re: What is going on with the home insurance rates?

Post by dm200 » Fri Oct 27, 2017 12:52 pm

blmarsha123 wrote:
Fri Oct 27, 2017 12:41 pm
dm200 wrote:
Fri Oct 27, 2017 7:18 am
Depending on state, I understand that many types of insurance (HO, auto, etc.) may be affected by the insured's credit score. I might check that out as well. <snip>
This is exactly what happened to me this fall. Both auto (20%) and HO (30%) increases were due to something called the Insurance Score, which is apparently derived from the credit score. Try as I might (countless phone calls, e-mails, etc. with insurer, Lexis/Nexis, TransUnion), I could never find out exactly what caused the Insurance Score to go down (in my case, about 5% drop between 2014 (the previous pull) and 2017). One person told me that in my case, there were two factors: (1) Number of open credit cards; and (2) Lost/stolen credit card. But that was denied by another person in a subsequent call. Anyway, (what I was told by Lexis/Nexis) the Insurance Score is supposed to predict your ability to make future payments, and is not (solely) based on your credit or payment history. So you could have as in my case, Excellent credit scores across the board and still have a (not excellent?) Insurance Score.
Very puzzling and "frustrating". Do you believe you can do anything to work on improving this "insurance score"?

blmarsha123
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Re: What is going on with the home insurance rates?

Post by blmarsha123 » Fri Oct 27, 2017 1:17 pm

dm200 wrote:
Fri Oct 27, 2017 12:52 pm
blmarsha123 wrote:
Fri Oct 27, 2017 12:41 pm
dm200 wrote:
Fri Oct 27, 2017 7:18 am
Depending on state, I understand that many types of insurance (HO, auto, etc.) may be affected by the insured's credit score. I might check that out as well. <snip>
This is exactly what happened to me this fall. Both auto (20%) and HO (30%) increases were due to something called the Insurance Score, which is apparently derived from the credit score. Try as I might (countless phone calls, e-mails, etc. with insurer, Lexis/Nexis, TransUnion), I could never find out exactly what caused the Insurance Score to go down (in my case, about 5% drop between 2014 (the previous pull) and 2017). One person told me that in my case, there were two factors: (1) Number of open credit cards; and (2) Lost/stolen credit card. But that was denied by another person in a subsequent call. Anyway, (what I was told by Lexis/Nexis) the Insurance Score is supposed to predict your ability to make future payments, and is not (solely) based on your credit or payment history. So you could have as in my case, Excellent credit scores across the board and still have a (not excellent?) Insurance Score.
Very puzzling and "frustrating". Do you believe you can do anything to work on improving this "insurance score"?
Well, I was told that if I could resolve any of the issues, the insurer would request a new report from Lexis/Nexis. I tried, unsuccessfully, to identify the account that was marked "lost/stolen credit card" as I was almost positive that I knew the source. Strangely, none of my credit reports contained such an entry. I've got the Number of Open Credit Cards on my to-do list.

sport
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Re: What is going on with the home insurance rates?

Post by sport » Fri Oct 27, 2017 2:50 pm

At my last annual renewal in April, State Farm lowered my HO insurance premium by about 15%.

Colorado13
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Re: What is going on with the home insurance rates?

Post by Colorado13 » Fri Oct 27, 2017 9:47 pm

JBTX wrote:
Wed Oct 25, 2017 10:23 pm
Colorado13 wrote:
Wed Oct 25, 2017 8:27 pm
Think about the recent weather: hurricanes, floods, fires, hail, etc. Insurance companies have to price for these events, which are becoming more frequent and more severe. Many (maybe all?) of us will bear the cost of these events by paying higher premiums.

In Colorado, the answer is simple:
1. Lots of hail.
2. My insurer told me that roof replacement costs are three times more expensive in 2017 than in 2010.
As to 2, do you mean total payouts? I had a new roof due to hail around 2011 and one this year it may have been 10-20% higher.
I wonder if this is location dependent? My insurer said the the cost of shingles has increased substantially. Due to multiple years of hail storms, plus incredibly low unemployment rates in the Denver metro area, labor costs have also increased substantially. YMMV.

tampaite
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Re: What is going on with the home insurance rates?

Post by tampaite » Sat Oct 28, 2017 7:08 am

flyingaway wrote:
Wed Oct 25, 2017 1:54 pm
I live in an area with no hurricane, no wildfire, no flood, (no close-by tornado or earthquake yet), in a middle sized city of U.S.
So why do you have home insurance? Don't just blindly follow the herd.

Can you go without insurance and instead invest and grow that money? For you to decide.

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mrc
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Re: What is going on with the home insurance rates?

Post by mrc » Sat Oct 28, 2017 7:24 am

tampaite wrote:
Sat Oct 28, 2017 7:08 am
flyingaway wrote:
Wed Oct 25, 2017 1:54 pm
I live in an area with no hurricane, no wildfire, no flood, (no close-by tornado or earthquake yet), in a middle sized city of U.S.
So why do you have home insurance? Don't just blindly follow the herd.

Can you go without insurance and instead invest and grow that money? For you to decide.
That is a terrible idea.
If it’s not long term it’s small talk

bigdav160
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Re: What is going on with the home insurance rates?

Post by bigdav160 » Sat Oct 28, 2017 7:51 am

That is a terrible idea
Maybe so but that is what I do.

Everyone has their own tolerance for risk and insurance is a hedge against that risk.

When my HO premiums reached $4500 several years ago (on a house the County says is worth $200k) I decided I had enough and would self insure.

sport
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Re: What is going on with the home insurance rates?

Post by sport » Sat Oct 28, 2017 9:16 am

bigdav160 wrote:
Sat Oct 28, 2017 7:51 am
When my HO premiums reached $4500 several years ago (on a house the County says is worth $200k) I decided I had enough and would self insure.
What do you do about liability insurance?

tampaite
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Re: What is going on with the home insurance rates?

Post by tampaite » Sun Oct 29, 2017 9:45 am

mrc wrote:
Sat Oct 28, 2017 7:24 am

That is a terrible idea.
It maybe for some but not so for others. I didn't invest in bitcoin when it was in low 100s but today it's in high 6000s. Thought it wasn't worth the risk and is same with home insurance.

In-fact, in my opinion, more than 80% of home owners don't make any claims just like Auto Insurance and that's money down the drain. Yea, you are protecting your family blah blah - all insurance speak - you decide individually what you want! If you think it's terrible, don't do it but then again don't discourage others as well.

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mrc
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Re: What is going on with the home insurance rates?

Post by mrc » Sun Oct 29, 2017 10:43 am

tampaite wrote:
Sun Oct 29, 2017 9:45 am
mrc wrote:
Sat Oct 28, 2017 7:24 am

That is a terrible idea.
It maybe for some but not so for others. I didn't invest in bitcoin when it was in low 100s but today it's in high 6000s. Thought it wasn't worth the risk and is same with home insurance.

In-fact, in my opinion, more than 80% of home owners don't make any claims just like Auto Insurance and that's money down the drain. Yea, you are protecting your family blah blah - all insurance speak - you decide individually what you want! If you think it's terrible, don't do it but then again don't discourage others as well.
So you can encourage people to drop home and auto insurance, but I can't discourage them from doing so? Right...

Unless the OP can truly self-insure or has essentially no assets, I am encouraging the OP shop around for better rates. Dropping HO/auto insurance isn't a good way to make a budget work for a particular SWR. As others have noticed on numerous other threads, there seems to be a customer loyalty penalty at renewal time.
If it’s not long term it’s small talk

tampaite
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Re: What is going on with the home insurance rates?

Post by tampaite » Sun Oct 29, 2017 11:05 am

mrc wrote:
Sun Oct 29, 2017 10:43 am


So you can encourage people to drop home and auto insurance, but I can't discourage them from doing so? Right...
I hope you know the difference between an opinion and an encouragement.

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