5.5% Homeowner Insurance Increase

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AD3
Posts: 115
Joined: Tue Apr 04, 2017 11:05 pm

5.5% Homeowner Insurance Increase

Post by AD3 »

I was curious in knowing how everyone is dealing with the recent rise of home prices when it comes to homeowner insurance. My area has seen home prices increase dramatically from the last time I had to update my homeowner insurance. The cost to rebuild in the last two years ago was about $250 sqft, but its currently about $750 sqft. My renewal is coming up in March, I haven't gotten the new bill but I'm excepting a rise on my premium. I just read this article about the Colorado fires which is a sad reminder of being under insured during a disaster.
[https://www.wsj.com/articles/victims-in ... lead_pos12]
Last edited by AD3 on Thu Jan 13, 2022 4:57 pm, edited 1 time in total.
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Tubes
Posts: 915
Joined: Wed Apr 22, 2020 6:33 am

Re: Expected Homeowner Insurance Increase

Post by Tubes »

There have been multiple recent threads. Between building product rises, and general real estate rises, many of us have seen our premiums go up significantly.

I deal with it by opening my checkbook and paying -- after checking around to make sure it just wasn't my insurance company giving me the 26% jolt.

Here's one of the many recent threads: viewtopic.php?f=2&t=357049

And another: viewtopic.php?f=2&t=352986
Colorado13
Posts: 1368
Joined: Thu Apr 07, 2011 4:58 pm
Location: Colorado

Re: Expected Homeowner Insurance Increase

Post by Colorado13 »

I expect homeowners insurance to go up dramatically on an annual basis due to increasing losses nationwide due to fires, tornadoes tornadoes, etc.

Catastrophic events will impact most home owner's insurance rates regardless of where they live and regardless of their own personal claim experience. Your post is a good reminder for people to review their coverage to ensure that it is adequate. Your insurance agent should be able to assist in that regard.
Topic Author
AD3
Posts: 115
Joined: Tue Apr 04, 2017 11:05 pm

Re: Expected Homeowner Insurance Increase

Post by AD3 »

Tubes wrote: Fri Jan 07, 2022 3:15 pm There have been multiple recent threads. Between building product rises, and general real estate rises, many of us have seen our premiums go up significantly.

I deal with it by opening my checkbook and paying -- after checking around to make sure it just wasn't my insurance company giving me the 26% jolt.

Here's one of the many recent threads: viewtopic.php?f=2&t=357049

And another: viewtopic.php?f=2&t=352986
Thanks for the link. I currently have a HO-6 policy, and I talked to the agent that underwrote the master policy, she told me that my master policy is a studs in policy. Based on that I think I might be over insured. But, the limits she suggested weren't based on the cost per sqft to rebuild but rather than the number of rooms in the condo. Which is something I found odd. I listed my coverage and cost below for reference.

Deductibles: $10,000
Section I Coverages
A. Dwelling $300,000
C. Personal Property $50,000
D. Loss Of Use $25,000
E. Personal Liability Each Occurrence $300,000
F. Medical Payments Each Person $1,000

Home Sqft 1036
Yearly Cost:$320
v1rtus
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Joined: Sat Jul 12, 2014 4:36 pm

Re: Expected Homeowner Insurance Increase

Post by v1rtus »

We just renewed ours and it was 25% more expensive than last year. Our agent shopped around but are current insurer was by far the best quote.
Topic Author
AD3
Posts: 115
Joined: Tue Apr 04, 2017 11:05 pm

Re: Expected Homeowner Insurance Increase

Post by AD3 »

v1rtus wrote: Fri Jan 07, 2022 6:42 pm We just renewed ours and it was 25% more expensive than last year. Our agent shopped around but are current insurer was by far the best quote.
I just got my bill today and I had a 5.5% increase which is a surprise given where I live. But, I'll take it. I also got a quote from Allstate and the quote came out to over $100 more for a lower dwelling cost limits.
bberris
Posts: 1860
Joined: Sun Feb 20, 2011 9:44 am

Re: Expected Homeowner Insurance Increase

Post by bberris »

Renewal in November, up 58 % in Minnesota from AmFam. I'm shopping now.
fortunefavored
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Joined: Tue Jun 02, 2015 8:18 pm

Re: Expected Homeowner Insurance Increase

Post by fortunefavored »

There's 2 parts - general policy increases due to losses, and requiring more coverage than you had.

I went through my state's insurance filings, and nearly every homeowner policy listed filed for an 8.9% increase (maybe this is the max the insurance commissioner will generally approve in my state? they'll probably do another 8.9% and then another and another until they're caught up.)

And then as someone alluded to up-thread, you need to ensure you have enough coverage to actually rebuild if necessary. Especially in a widespread disaster scenario when prices spike. That's pretty much on you to ensure you understand what your coverage is.

So if you need 50% more dwelling coverage, plus an 8.9% increase across the policy - that would be the "expected" increase in my state.
Topic Author
AD3
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Joined: Tue Apr 04, 2017 11:05 pm

Re: Expected Homeowner Insurance Increase

Post by AD3 »

fortunefavored wrote: Thu Jan 13, 2022 3:05 pm There's 2 parts - general policy increases due to losses, and requiring more coverage than you had.

I went through my state's insurance filings, and nearly every homeowner policy listed filed for an 8.9% increase (maybe this is the max the insurance commissioner will generally approve in my state? they'll probably do another 8.9% and then another and another until they're caught up.)

And then as someone alluded to up-thread, you need to ensure you have enough coverage to actually rebuild if necessary. Especially in a widespread disaster scenario when prices spike. That's pretty much on you to ensure you understand what your coverage is.

So if you need 50% more dwelling coverage, plus an 8.9% increase across the policy - that would be the "expected" increase in my state.
Ensuring enough coverage is where I'm at in this process espically with how fast home prices have risen and construction cost that have ballooned. When I initially shopped for new homeowner insurance 2 years ago the rebuild cost per sqft was about $275 recent estimates where I live are now are around $450- $500.
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