Silicon valley home insurance increase from $1400->$2200, sounds right?!

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lightheir
Posts: 2621
Joined: Mon Oct 03, 2011 11:43 pm

Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by lightheir »

I have an autopay on home insurance (Travelers) in Silicon Valley CA (around Mountain view), that for the past 10 years has increased gradually from around 1100 -> 1400, and then this past year jumped to $2200 (!)

I didn't notice it until it was autobilled and deducted from my account.

There have been no changes or claims made in my house, ever. I'm assuming this rate increase was due to the prior year CA wildfires, but wow, that's a monster 50% jump in increase, which makes me wonder if this is an outlier, or if others in CA are seeing similar increases with theirs.

I may end up getting new quotes from other companies but figured I'd asked here first because the amount of spam you get from a home insurance request is staggering (yes, I've done it in the past.)

Thx
jack.bauer
Posts: 31
Joined: Wed Feb 02, 2011 3:17 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by jack.bauer »

Our home insurance premium also went up ~33% (State Farm) due to the forest fires. I also missed the auto renewal notice. Lol.

Its a regular market and they have to file intent to raise with some state agency a year or so out. And agent mentioned that was in process for another raise. So agent said to expect another raise next year.
Kagord
Posts: 594
Joined: Fri Nov 23, 2018 1:28 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by Kagord »

The cost to build is up, lumber is currently 4.5X where it was pre pandemic. Seems to me, on properties we own, insurance companies price the cost to rebuild over the price to buy an equivalent home.
rascott
Posts: 2562
Joined: Wed Apr 15, 2015 10:53 am

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by rascott »

Mine has gone up a lot in recent years..... I've had good luck getting much lower quotes using some independent agents. But haven't made the switch yet.... the most recent one was like $1300....compared to my current $2100 with Allstate. The savings was so much actually made me hesitate and do more research on the insurer.
rjbraun
Posts: 1777
Joined: Sun Sep 09, 2012 8:22 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by rjbraun »

rascott wrote: Mon May 03, 2021 9:44 am Mine has gone up a lot in recent years..... I've had good luck getting much lower quotes using some independent agents. But haven't made the switch yet.... the most recent one was like $1300....compared to my current $2100 with Allstate. The savings was so much actually made me hesitate and do more research on the insurer.
I also shopped around last year. I found a considerably lower quote but held off. After allaying concerns (enough) that the service and claims coverage would be comparable my fear was that the new carrier would just jack up the rate the next time around (or so) and leave us on par with what we would have been paying with our original carrier. As we had a preference for the original company we never made the switch (so far).
curmudgeon
Posts: 2197
Joined: Thu Jun 20, 2013 11:00 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by curmudgeon »

We almost doubled this year for our SV house. Most of the increase was from the general CA fire loss hike; a smaller part was specific to our policy. We are in a somewhat higher risk zone, so quite a few companies won't even offer a policy for our address which limits our options.
RightGuard
Posts: 43
Joined: Thu Aug 23, 2018 3:54 pm
Location: KC to Shining Sea

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by RightGuard »

Now we can all cry together, except I'm paying $2200 on one third of the value of a SV home here in FL, flood is another $650-$800.

I'm dreading renewals this year. There was recent WSJ article about swelling numbers in the state's Citizen's Protective Insurance Group (Insurer of last resort) due to deep structural problems in the private market.
jarjarM
Posts: 1077
Joined: Mon Jul 16, 2018 1:21 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by jarjarM »

My bayarea homeowner insurance also went up ~30% as well (Mercury). :x
bmelikia
Posts: 670
Joined: Mon Jun 15, 2009 9:23 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by bmelikia »

The replacement cost of your home has likely increase considerably since lumber, steel, concrete, and building hardware have all seen significant increases.

The cost of a sheet of plywood has more than quadrupled since February/March 2020
"I would rather die with money, than live without it...." - Bogleheads member Ron | | "The greatest enemy of a good plan, is the dream of a perfect plan." | -Bogle
DoubleComma
Posts: 282
Joined: Sun Aug 23, 2020 2:23 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by DoubleComma »

I have two CA homes, one is only 5 years old and that premium has been flat each year. It's not in a high risk or high brush area and considering the type of construction (stucco, tile roof, with sprinkler system, etc) Nationwide hasn't done much to the premium.

The second house however; is smaller a little older (12 Years) has composition roof and is in a high brush area. Nationwide refused to write it when we bought it, another carrier I don't recall wrote it for one year then dropped us at renewal. For the past two years we have had to use CA Fair Plan, insurance of last resort, and are paying $4k+. CA Fair Plan only covers the structure from fire too, we also have a Difference in Conditions (DIC) to cover liability, contents and other perils. Combined the policies are $5500 w/ a $10k deductible and we exclude theft as we will self-insure that risk.

Crazy how expensive HO insurance has become in CA, largely a result of wild fire.
quantAndHold
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Joined: Thu Sep 17, 2015 10:39 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by quantAndHold »

We live in an urban part of San Diego that’s at minimal danger of wildfires. Our premium stayed flat this year.
Yes, I’m really that pedantic.
z91
Posts: 609
Joined: Fri Mar 07, 2014 1:19 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by z91 »

Common. I have an SFH investment property in the same area that has almost doubled. I asked a few folks in the area and all of the rates have gone up. Might not be nationwide, but it's happening in the SF Bay Area.
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Watty
Posts: 22335
Joined: Wed Oct 10, 2007 3:55 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by Watty »

It makes sense that the cost to insure a home would go up as the price of a home goes up.

How much has your home price gone up over the last year?
tigermilk
Posts: 681
Joined: Thu Aug 15, 2013 9:32 am

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by tigermilk »

RightGuard wrote: Mon May 03, 2021 5:42 pm Now we can all cry together, except I'm paying $2200 on one third of the value of a SV home here in FL, flood is another $650-$800.

I'm dreading renewals this year. There was recent WSJ article about swelling numbers in the state's Citizen's Protective Insurance Group (Insurer of last resort) due to deep structural problems in the private market.
Gulf Coast living sucks, eh? In my neck of the woods in the Houston area, being in a county that touches the Gulf drives our insurance is over $3k on a $275k appraised home.
squirm
Posts: 3300
Joined: Sat Mar 19, 2011 11:53 am

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by squirm »

Doesn't seem like anything new. I have a SIL in the foothills, she said years ago her insurance went up due to the fires like Paradise. Last year all those complex fires in the bay area are driving up prices. Some aren't even able to get insurance

If you have insurance, who is do you have?
Wannaretireearly
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Joined: Wed Mar 31, 2010 4:39 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by Wannaretireearly »

I think my quote went up 20-30% with state farm to around $1300.
Was able to work with my agent to redo the quote. Slightly less overall coverage for $1000 now.
This time next year, we'll be millionaires!
billy269
Posts: 125
Joined: Mon Nov 18, 2013 2:50 pm

Re: Silicon valley home insurance increase from $1400->$2200, sounds right?!

Post by billy269 »

I live in the mountains in NE California, very similar. My Travelers just went from $1300 to $1900 for a plan with only $336k of coverage. It sounds like they have revamped how they calculate premiums in California, which I think is part of the jump. Honestly, even with the huge increase I was relieved to get renewed and dodge the bullet for another year. Really dread when I'm stuck with the "FAIR" plan.
https://www.travelers.com/home-insuranc ... ornia-home
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