Home Insurance Increasing

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Ricola
Posts: 750
Joined: Sat Apr 26, 2008 10:38 am

Home Insurance Increasing

Post by Ricola »

How much is your home insurance going up for 2022? I just got my statement for next year from USAA with a 44% increase in total premium. :shock:
dukeblue219
Posts: 2184
Joined: Fri Jan 29, 2016 12:40 pm

Re: Home Insurance Increasing

Post by dukeblue219 »

Shop around. If you want to optimize home owners insurance you need to switch every few years or they'll slowly creep it up on you.
GypsyHome
Posts: 6
Joined: Sun Sep 19, 2021 4:58 pm

Re: Home Insurance Increasing

Post by GypsyHome »

My mother had USAA for years, but their rates increased considerably a few years ago (she lives in Florida.) She was able to find less expensive insurance by shopping around a bit.
User avatar
willthrill81
Posts: 26985
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Home Insurance Increasing

Post by willthrill81 »

We had State Farm for years, but their premiums increased by 40% over the span of two years for no clearly articulable reason. We shopped around and switched to Farmer's, where we were able to insure our home and auto for the same premiums as we were paying to State Farm for home only.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
Broken Man 1999
Posts: 6801
Joined: Wed Apr 08, 2015 11:31 am
Location: West coast of Florida, near Champa Bay !

Re: Home Insurance Increasing

Post by Broken Man 1999 »

Last year I paid $2378, renewable for $2967 this year. Nope, no renewal.

Changed carrier, went to $5000 deductible, back down to $2000.

Our hurricane deductible is $6800, and that would be the most likely claim anyhow.

Another carrier was around $1700, but their roof age max was 15 years, and my roof is 21 years old.

Might save more when I get a new roof.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
carolinaman
Posts: 4854
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: Home Insurance Increasing

Post by carolinaman »

The value of homes has gone up a lot in the past year. I just got my renewal notice and it increased 9%. Home value increase explained the difference. Areas that had higher home value increases could increase commensurately. Your increase was more than any likely home value increase. I would talk with agent to understand why the increase. There may be some adjustments to get it into more acceptable range. Lacking that, it is time to shop your policy.
coolasadog
Posts: 37
Joined: Sat Dec 15, 2018 1:01 pm

Re: Home Insurance Increasing

Post by coolasadog »

Just got a 60% increase following a virtual home inspection. They cited changes to the house. All of which were here when they first insured us 15 years ago. I am not happy having to do the homework to shop the policy. But I guess that is what they bank on.
Topic Author
Ricola
Posts: 750
Joined: Sat Apr 26, 2008 10:38 am

Re: Home Insurance Increasing

Post by Ricola »

Checked a couple of alternatives and each is the same or better than what I am currently paying so saying goodbye to USAA after many years. Maybe time to move my banking with them also.
User avatar
willthrill81
Posts: 26985
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Home Insurance Increasing

Post by willthrill81 »

My momma told me you better shop around. 8-)
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
pshonore
Posts: 7415
Joined: Sun Jun 28, 2009 2:21 pm

Re: Home Insurance Increasing

Post by pshonore »

Just got my USAA Homeowners renewal. House value up 12%, premium up 9% (in CT)
Topic Author
Ricola
Posts: 750
Joined: Sat Apr 26, 2008 10:38 am

Re: Home Insurance Increasing

Post by Ricola »

willthrill81 wrote: Wed Nov 24, 2021 12:21 pm My momma told me you better shop around. 8-)
Yea, customer loyalty doesn't mean anything to some of these outfits.
Topic Author
Ricola
Posts: 750
Joined: Sat Apr 26, 2008 10:38 am

Re: Home Insurance Increasing

Post by Ricola »

pshonore wrote: Wed Nov 24, 2021 12:48 pm Just got my USAA Homeowners renewal. House value up 12%, premium up 9% (in CT)
My Dwelling Protection went up 3.8% but the premium went up 44%, no reason given and no know guess as to why.
valleyrock
Posts: 296
Joined: Sun Aug 12, 2018 7:12 am

Re: Home Insurance Increasing

Post by valleyrock »

Our company (AMICA) insures houses for replacement value. What with labor costs going up, along with supplies, wood, etc., I'm afraid we'll be looking at an increase, as well. Increasing the deductible to $5,000 a while back did help matters. Filing a claim for about $5,000 did not, and led to increases over a few years totaling around $5,000. So, it might be a good idea to think of homeowner's insurance as a kind of catastrophic plan. Choosing a high deductible and paying for minor stuff, even up to $10,000, might save money, while still having the security of not having to worry about damage due to a fire, say. I wonder if anyone's run the numbers, to the extent that the numbers are available.
boglefannyc
Posts: 60
Joined: Fri May 06, 2016 2:10 pm

Re: Home Insurance Increasing

Post by boglefannyc »

My premium went up 15% on the last bill.
User avatar
JoeRetire
Posts: 10155
Joined: Tue Jan 16, 2018 2:44 pm

Re: Home Insurance Increasing

Post by JoeRetire »

willthrill81 wrote: Wed Nov 24, 2021 12:21 pm My momma told me you better shop around. 8-)
Well played!
I love a good nap. Sometimes it’s the only thing getting me out of bed in the morning.
talzara
Posts: 2041
Joined: Thu Feb 12, 2009 7:40 pm

Re: Home Insurance Increasing

Post by talzara »

valleyrock wrote: Wed Nov 24, 2021 1:05 pm Filing a claim for about $5,000 did not, and led to increases over a few years totaling around $5,000. So, it might be a good idea to think of homeowner's insurance as a kind of catastrophic plan. Choosing a high deductible and paying for minor stuff, even up to $10,000, might save money, while still having the security of not having to worry about damage due to a fire, say. I wonder if anyone's run the numbers, to the extent that the numbers are available.
Homeowners insurance has an average claim severity of almost $14,000: https://www.iii.org/fact-statistic/fact ... -insurance

Homeowners insurance is really designed to be used for serious losses. Premiums are calculated based on the number of claims, not the dollar amount of the claim. In addition, most insurers will nonrenew your policy after two claims in a certain number of years.

It is best to avoid filing small claims. Your premium will go up just as much as it would after a large claim, and you will have wasted your one allowed claim. It is better to self-insure the small losses and save the claim for when you really need it.

Most homeowners insurers allow you to select a percentage deductible of up to 5%, and Fannie Mae allows 5% deductibles on conforming mortgages. Some insurers do not have percentage deductibles, but the maximum dollar deductible is usually $10,000.
Alan S.
Posts: 10876
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Home Insurance Increasing

Post by Alan S. »

For Homeowners premium increases it is worthwhile to analyze the change by breaking it down into:

1) Increase in Coverage amount %
this reflects inflation only. But you should determine if the increase in Coverage amount is reasonable. No doubt this is a much larger problem with today's runaway inflation, but remember that the policy does not cover your land, just the replacement cost of the improvements. Take advantage of guaranteed replacement cost if you can.
2) Actual Increase in the rate itself per dollar of Coverage A carried.
IMO
Posts: 1547
Joined: Fri May 05, 2017 6:01 pm

Re: Home Insurance Increasing

Post by IMO »

Ricola wrote: Wed Nov 24, 2021 12:55 pm
pshonore wrote: Wed Nov 24, 2021 12:48 pm Just got my USAA Homeowners renewal. House value up 12%, premium up 9% (in CT)
My Dwelling Protection went up 3.8% but the premium went up 44%, no reason given and no know guess as to why.
Knock on wood, haven't had such a huge increase with our USAA policy.

Have you called and spoken to them about this?

I think that's higher than the CPI.
User avatar
Metsfan91
Posts: 376
Joined: Sat Jan 11, 2020 12:33 pm

Re: Home Insurance Increasing

Post by Metsfan91 »

I am in the rust belt. I have AAA. My homeowner insurance went up 9%. I spoke with my agent and requested for new credit pull. Credit score came up higher. So, instead of going up 9%, my premium went down over 10%, a 20% swing.
"Know what you own, and know why you own it." — Peter Lynch
valleyrock
Posts: 296
Joined: Sun Aug 12, 2018 7:12 am

Re: Home Insurance Increasing

Post by valleyrock »

talzara wrote: Thu Nov 25, 2021 1:06 pm
valleyrock wrote: Wed Nov 24, 2021 1:05 pm Filing a claim for about $5,000 did not, and led to increases over a few years totaling around $5,000. So, it might be a good idea to think of homeowner's insurance as a kind of catastrophic plan. Choosing a high deductible and paying for minor stuff, even up to $10,000, might save money, while still having the security of not having to worry about damage due to a fire, say. I wonder if anyone's run the numbers, to the extent that the numbers are available.
Homeowners insurance has an average claim severity of almost $14,000: https://www.iii.org/fact-statistic/fact ... -insurance

Homeowners insurance is really designed to be used for serious losses. Premiums are calculated based on the number of claims, not the dollar amount of the claim. In addition, most insurers will nonrenew your policy after two claims in a certain number of years.

It is best to avoid filing small claims. Your premium will go up just as much as it would after a large claim, and you will have wasted your one allowed claim. It is better to self-insure the small losses and save the claim for when you really need it.

Most homeowners insurers allow you to select a percentage deductible of up to 5%, and Fannie Mae allows 5% deductibles on conforming mortgages. Some insurers do not have percentage deductibles, but the maximum dollar deductible is usually $10,000.
Thanks, this is most helpful. Thinking now of moving to a $10,000 deductible. (I'm afraid to look at the new policy, which they recently told me I can examine online. Adding two teenagers to the auto component sure hasn't helped, that's for sure.)
BGeste
Posts: 183
Joined: Wed Jul 24, 2019 11:55 am

Re: Home Insurance Increasing

Post by BGeste »

Ricola wrote: Sun Nov 21, 2021 2:55 pm How much is your home insurance going up for 2022? I just got my statement for next year from USAA with a 44% increase in total premium. :shock:
USAA is very overpriced for car and home insurance. I overpaid them blindly for years. When I switched to GEICO I saved over 50%. Progressive was very competitive as well when I shopped. Service with GEICO has been excellent. It is worth checking for yourself. You can get the same coverage and better service for a lot less money.
User avatar
willthrill81
Posts: 26985
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Home Insurance Increasing

Post by willthrill81 »

valleyrock wrote: Fri Nov 26, 2021 2:02 pm
talzara wrote: Thu Nov 25, 2021 1:06 pm
valleyrock wrote: Wed Nov 24, 2021 1:05 pm Filing a claim for about $5,000 did not, and led to increases over a few years totaling around $5,000. So, it might be a good idea to think of homeowner's insurance as a kind of catastrophic plan. Choosing a high deductible and paying for minor stuff, even up to $10,000, might save money, while still having the security of not having to worry about damage due to a fire, say. I wonder if anyone's run the numbers, to the extent that the numbers are available.
Homeowners insurance has an average claim severity of almost $14,000: https://www.iii.org/fact-statistic/fact ... -insurance

Homeowners insurance is really designed to be used for serious losses. Premiums are calculated based on the number of claims, not the dollar amount of the claim. In addition, most insurers will nonrenew your policy after two claims in a certain number of years.

It is best to avoid filing small claims. Your premium will go up just as much as it would after a large claim, and you will have wasted your one allowed claim. It is better to self-insure the small losses and save the claim for when you really need it.

Most homeowners insurers allow you to select a percentage deductible of up to 5%, and Fannie Mae allows 5% deductibles on conforming mortgages. Some insurers do not have percentage deductibles, but the maximum dollar deductible is usually $10,000.
Thanks, this is most helpful. Thinking now of moving to a $10,000 deductible. (I'm afraid to look at the new policy, which they recently told me I can examine online. Adding two teenagers to the auto component sure hasn't helped, that's for sure.)
Raising the deductible may help a lot, but it might not. When we were setting up our policy with Farmer's, the premium difference between $1,000, $5,000, and $10,000 deductibles was not significant enough to make it worthwhile in our view. We would have had to go around 20 years, IIRC, without filing a claim in order to break-even with the $10k deductible.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
User avatar
Bogle7
Posts: 1342
Joined: Fri May 11, 2018 9:33 am
Location: Mountain state

Macro forces.

Post by Bogle7 »

Rates are going up. No matter what.
1. Claims overall are increasing due to large events.
2. Investment income is historically low.
3. Replacement costs are increasing.
Last edited by Bogle7 on Fri Nov 26, 2021 6:35 pm, edited 1 time in total.
Old fart who does three index funds, baby.
Golf maniac
Posts: 910
Joined: Wed Dec 27, 2017 2:02 pm
Location: Florida

Re: Home Insurance Increasing

Post by Golf maniac »

In Florida, USAA has always been competitive with others for me. This year up 14%, so I will again see comparable coverage at other insurers.
NYCaviator
Posts: 481
Joined: Sat Apr 09, 2016 5:06 pm
Location: NYC

Re: Home Insurance Increasing

Post by NYCaviator »

I think a lot has to do with (1) exponentially increased material and labor costs, and (2) more frequent and catastrophic natural disasters (flooding, fires, etc.).

I bet we will see increases from most carriers. The bottom line is that it's going to cost a heck of a lot more to repair/rebuild your home in 2021 than it did it 2019.
valleyrock
Posts: 296
Joined: Sun Aug 12, 2018 7:12 am

Re: Home Insurance Increasing

Post by valleyrock »

Can we get insurance to cover insurance cost increases? This sounds redundant and in jest, but perhaps indirectly this is possible by investing in Home Depot, Lowe's, home builders, etc. or a construction or infrastructure sort of ETF.
User avatar
Tubes
Posts: 789
Joined: Wed Apr 22, 2020 6:33 am

Re: Home Insurance Increasing

Post by Tubes »

Roofing claims are sure going up as the sales people come by our neighborhood on a regular basis imploring us to get a "free" roof through insurance.
IowaFarmBoy
Posts: 964
Joined: Fri Jan 22, 2010 8:19 am

Re: Home Insurance Increasing

Post by IowaFarmBoy »

We just got our renewal in downstate Illinois, State Farm went up 8%. I'm sure a lot of that was due to increased coverage- our policy has an automatic adjustment for increases in replacement cost but I couldn't easily find how much our coverage amount had gone up.
mesaverde
Posts: 515
Joined: Wed May 02, 2007 4:14 pm

Re: Home Insurance Increasing

Post by mesaverde »

The cost of auto insurance has increased as well (driven by the increased cost of repairs & used+new automobile values).
"Learn from the past, live in the present, plan for the future"
mesaverde
Posts: 515
Joined: Wed May 02, 2007 4:14 pm

Re: Home Insurance Increasing

Post by mesaverde »

valleyrock wrote: Sat Nov 27, 2021 5:52 am Can we get insurance to cover insurance cost increases? This sounds redundant and in jest, but perhaps indirectly this is possible by investing in Home Depot, Lowe's, home builders, etc. or a construction or infrastructure sort of ETF.
Personally I don't invest in individual stocks/sectors but have seriously been considering investing in these for that very reason!
"Learn from the past, live in the present, plan for the future"
valleyrock
Posts: 296
Joined: Sun Aug 12, 2018 7:12 am

Re: Home Insurance Increasing

Post by valleyrock »

Tubes wrote: Sat Nov 27, 2021 6:25 am Roofing claims are sure going up as the sales people come by our neighborhood on a regular basis imploring us to get a "free" roof through insurance.
They'll be happy to drop a tree on your roof to help.
valleyrock
Posts: 296
Joined: Sun Aug 12, 2018 7:12 am

Re: Home Insurance Increasing

Post by valleyrock »

mesaverde wrote: Sat Nov 27, 2021 9:25 am The cost of auto insurance has increased as well (driven by the increased cost of repairs & used+new automobile values).
No doubt. And the whole issue of the chip shortage causing a holdup on new car production leads inevitably to the conclusion that all those chips in the cars is going to make repair costs go through the roof. I'd think there's a market for a car with as few chips as possible for those of us who can parallel park without an assist from sensors.
User avatar
Tubes
Posts: 789
Joined: Wed Apr 22, 2020 6:33 am

Re: Home Insurance Increasing

Post by Tubes »

valleyrock wrote: Sat Nov 27, 2021 1:03 pm
Tubes wrote: Sat Nov 27, 2021 6:25 am Roofing claims are sure going up as the sales people come by our neighborhood on a regular basis imploring us to get a "free" roof through insurance.
They'll be happy to drop a tree on your roof to help.
That is seriously close to reality. My neighbor had a "drip channel" three rows up over his door and I watched the guy rip it out, then circle it with chalk. The next day the adjuster came and they were pointing to that area.

I couldn't hear the discussion, but man that looked shady.
slickracer
Posts: 88
Joined: Sat Dec 26, 2020 10:00 am

Re: Home Insurance Increasing

Post by slickracer »

I'm with Erie and my annual premium just increased 6%.
Post Reply