Anyone Else Get Big Increase in Homeowners Insurance Premium this Year?

[John Galt III]

Hi,

This year and the two years before, I've gotten a 15% increase in my homeowner's insurance premium. No claims. Is this happening to a lot of folks?

It's now up to $295 a year for a townhome with a rebuild cost of $168,000 and a $1,500 deductible, with Erie.


Thanks

 

[Walt34]

Mine is also with Erie, it is virtually unchanged from last year's.

 

[MRG]

We got hit, probaly 10% with Hartford.

 

[Mulligan]

Just received my bill last week. It jumped from $700 to $850. However I was paying almost $1100 the year before. I may have been sucked into a first year teaser rate. I am not going to look to switch this yer as it is still cheaper than the previous 5 years. I will be more aggressive next year if they jump it again.

 

[Mulligan]

We got hit, probaly 10% with Hartford.

That is who I am with. Still even with the increase this year it was still lower than any other of the quotes I received last year when I aggressively shopped around.

 

[Papa bear]

Location may have something to do with premium increases. I know a lot of firms I work with have been increasing in areas by any coast or areas that have had higher than usual storm damage. In fact, I know of firms that have stopped writing new plans on the east coast due to potential losses.

 

[MRG]

That is who I am with. Still even with the increase this year it was still lower than any other of the quotes I received last year when I aggressively shopped around.

Us too. FYI we're in the geographicly center of US.

MRG

 

[Dawg52]

Hi,

This year and the two years before, I've gotten a 15% increase in my homeowner's insurance premium. No claims. Is this happening to a lot of folks?

It's now up to $295 a year for a townhome with a rebuild cost of $168,000 and a $1,500 deductible, with Erie.


Thanks

Wish I could get that kind of rate. Although I'm 160 from the coast, I guess the hurricane factor hurts me.

 

[GrayHare]

Do you qualify for perpetual insurance? There are no annual payments, instead one deposit up front that is returned when you cancel. http://www.oneprojectcloser.com/perpetual-home-insurance-explained/

 

[Mulligan]

Wish I could get that kind of rate. Although I'm 160 from the coast, I guess the hurricane factor hurts me.

I was thinking same thing, I live in Midwest. John's rate is still very cheap I think. I couldn't get that rate if my house was built inside the fire station.

 

[John Galt III]

I was thinking same thing, I live in Midwest. John's rate is still very cheap I think. I couldn't get that rate if my house was built inside the fire station.

I'm in eastern Pa, and we definitely got some of hurricane Sandy last Fall. But the two previous years had no huge storms, and I got the 15% increases anyway. No wait, there was the huge snowfall around Halloween in 2011 that brought down so many trees. Always something, eh?

Haven't shopped around yet. Maybe $295 a year for $168,000 rebuild is cheap these days. Hope so.

 

[Mulligan]

I'm in eastern Pa, and we definitely got some of hurricane Sandy last Fall. But the two previous years had no huge storms, and I got the 15% increases anyway. No wait, there was the huge snowfall around Halloween in 2011 that brought down so many trees. Always something, eh?

Haven't shopped around yet. Maybe $295 a year for $168,000 rebuild is cheap these days. Hope so.

Mine is going to be $850, with $196,000 rebuild. I have given up on the rebuild costs as all the insurance companies won't come down on it. Appraised value, $145,,000. You could build the same house brand new for $155,000 here. I think that is a scam that pads their profits.

 

[HFWR]

Mine went up, though I don't remember how much. Maybe 10%, up to around $800 or so. Home value maybe $140k on a good day.

 

[W2R]

My homeowners' insurance went up 24%. But then, last year it only went up a tiny bit compared with the usual yearly increases, so I am not surprised.

I think I have all the coverage Allstate would sell me, right now, so if it becomes a hardship I'll just ask for a less deluxe policy.

 

[MRG]

I'm in eastern Pa, and we definitely got some of hurricane Sandy last Fall. But the two previous years had no huge storms, and I got the 15% increases anyway. No wait, there was the huge snowfall around Halloween in 2011 that brought down so many trees. Always something, eh?

Haven't shopped around yet. Maybe $295 a year for $168,000 rebuild is cheap these days. Hope so.

Didn't central PA have a big flood 2 years ago(early September). Remember driving through it late at night wondering of I-80 was going to remain open.

My sister was saying she could not see, told her she probably didn't want to.

MRG

 

[Chuckanut]

Somebody has to pay for that big hurricane that hit the east coast.

 

[Texas Proud]

Heck, we pay north of $1800 for something around $250K....

Deductible is 1%, so higher than yours.. also no claims...

 

[Dawg52]

Mine is going to be $850, with $196,000 rebuild. I have given up on the rebuild costs as all the insurance companies won't come down on it. Appraised value, $145,,000. You could build the same house brand new for $155,000 here. I think that is a scam that pads their profits.

I agree. The market value of my house is not anywhere near the rebuild value they have me insured for. And the actual rebuild cost is much lower as you said. I upped my deductible to $7,500 which cut my premium almost in half. Still higher than the OP, but easier to digest. Of course if I have my roof blown off or something, I'm pretty much self insuring for that. But if my house burns down, I will still be insured for more than what the actual replacement cost is even after backing out my deductible.

Never had a claim, hopefully that will continue.

 

[HFWR]

One thing to remember is that if your home is destroyed by fire or whatever, before you can rebuild, you have to clean up what's left of the old place. So rebuild value has to include those costs.

Of course, my place is insured for the appraised value, which includes the lot value...

 

[Mulligan]

I agree. The market value of my house is not anywhere near the rebuild value they have me insured for. And the actual rebuild cost is much lower as you said. I upped my deductible to $7,500 which cut my premium almost in half. Still higher than the OP, but easier to digest. Of course if I have my roof blown off or something, I'm pretty much self insuring for that. But if my house burns down, I will still be insured for more than what the actual replacement cost is even after backing out my deductible.

Never had a claim, hopefully that will continue.

I like your idea concerning the high deductible of $7500 and pocket the savings as mine is $1000. I just patched my roof leak today which consisted only of water getting underneath some shingles on an arch in front part of house. Being that my roof is almost 10 years old and at half life already, I could pay for a new roof and not complain as I am expecting to do it in 10 years anyways. Besides if I am willing to have a $5,000 deductible on my own health, it would seem logical to have more of one on my house. I'm locked in this year, but next year I am going for it.

 

[JOHNNIE36]

It is almost impossible to compare rates as there are so many variables. In 2012 our annual premium was $1770/yr and this year it is $1895, so a $125 increase. The dwelling is insured for $260K. Actually the premium is $2457+$318(replacement cost of personal property)+$155 for misc coverages and fees. And, all that is reduced by $122 for my deductible, $320 for wind mitigation credit and $593 for sinkhole exclusion. I have a deductible of $2500 on everything except hurricane deductible is $5090.
Now, does that tell anybody anything? One important item is that I had a wind mitigation study on our home (cost $100) that gives me a credit of $320/yr. That study verified that this home was built with most of the standards implemented after hurricane Andrew in 1990. I think the study and credit is good for three years and then has to be redone if changes are made to the hurricane codes.

We are about 12 miles from the Gulf and not in a flood plane. However the state and the insurance companies just redefined our area as hurricane "prone" and subject to damaging winds. What that does is require windows that are hurricane resistant if I decide to replace them. Just had a quote last week for about $20000 to replace all of our windows.

About a month ago I went to Allstate for a quote, just to compare, and they aren't writing any policies in Florida. Friends of ours just bought a home in our area and had a hard time getting someone to write a policy. They ended up going to the company we are with.

Well, I guess I burned this thread. What more can I say. I always enjoy these threads where comparisons are being made but it's so hard to decipher. This post might be helpful to someone in Florida but not to someone in Iowa.