Homeowners insurance cost is going up 32.12% (Allstate in CA)

[Scuba]

I checked my policy which renews in July and our 2017-18 homeowners premium actually decreased around 4-5%. We are with Allstate. If I were you, I'd call your agent for an explanation.

 

[mystang52]

I think one needs to competitively shop every few years. They take advantage of inertia and charge you as much as they can, without you leaving.

+1........reluctantly. Over the years, I've had to switch insurers 5 times because the initial premiums were nickel-and-dimed upwards with each renewal, to the point where they became drastically higher. In each case I overpaid for a couple of years, at least, simply because I hate the whole insurance shopping process.
I just changed insurers, after only 3 years, for this same reason, despite my abhorrence of the process. I'm saving $800 per year. I now recognize that I'll likely be switching again 3-5 years from now.
P.S. Oh, it was accidental on my part, but I think it was good I waited 3 years before switching. It appears being with one insurer for 3 straight years or more is a good underwriting factor.

 

[swakyaby]

Was with Allstate for 15 years until they started raising homeowner's insurance rates steadily for the last 3 years we were with them. I know that our greatest risk is fire risk with all the dried grasses and brush. Today, I see the city paid for a goat herder with 250 goats to munch on the dried grass outside our backyard where we live next to a greenbelt. The goats are amazing mowing eating machines!

 

[Koolau]

I don't know if there was ever loyalty in the insurance business, but if there was, it's gone. My cousin handled our insurance and we had never had a claim in 20+ years. When DW lost the diamond from her ring, we decided to turn it in. They only paid $500 on what would have been a $1300 replacement - and my cousin warned us it would be a "bad idea to have another claim of any kind for a few years." I suppose the ideal then would be to have a very high deductible and then if the house burns down, make a claim. Otherwise, insurance was never designed to be used - just paid for. YMMV

 

[Hermit]

I'm a retired property-casualty actuary and I still prefer to work with an agent who knows what he/she is doing.

I didn't know there were any around with those qualifications.

 

[Alex The Great]

I live in CA and have home insurance from Safeco: up around 5% this year. I believe we have very reasonably priced home insurance, compared to other states like Florida or Texas.

 

[JoeWras]

All homeowners' insurance rates (as well as other rates) must be approved by the Insurance Commissioner in each state and backed up by statistics.

And then in NC, State Farm started making us sign a form which basically said, "We can do what we want outside of the commissioner's directives."

If you didn't sign, you were not renewed.

So when I dropped my SF policy, my "friendly, local, responsive agent" was useless in regard to explaining it except to say "everyone is doing it." Right.

I'm now with a company that does not require signing the waiver.

 

[athena53]

And then in NC, State Farm started making us sign a form which basically said, "We can do what we want outside of the commissioner's directives."

If you didn't sign, you were not renewed.

So when I dropped my SF policy, my "friendly, local, responsive agent" was useless in regard to explaining it except to say "everyone is doing it." Right.

I'm now with a company that does not require signing the waiver.

Wow. I'd heard of "consent to rate" but had never seen it in practice. What a sneaky way to get out of the market.

 

[JoeWras]

Wow. I'd heard of "consent to rate" but had never seen it in practice. What a sneaky way to get out of the market.

Thank you! That was the form. Yes, they are practicing it in NC.

'Consent to rate' insurance forms worry homeowners :: WRAL.com

 

[Disappointed]

An update:
Called my agent, she said the replacement cost went up. She said there is a discount for retirees, so now my premium is up 20% instead of 32%. I started my retirement in 2014, missed out on the discount for three years.

I asked her about auto, she said there is a discount for professional (based on education), that is a $50 discount per month.

I really should start shopping around for a better deal, being with them for almost 30 years created this inertia and laziness. I don't think my agent is really trying to get me the lowest premium possible.

 

[REWahoo]

An update:
Called my agent, she said the replacement cost went up. She said there is a discount for retirees, so now my premium is up 20% instead of 32%. I started my retirement in 2014, missed out on the discount for three years.

I asked her about auto, she said there is a discount for professional (based on education), that is a $50 discount per month.

I really should start shopping around for a better deal, being with them for almost 30 years created this inertia and laziness. I don't think my agent is really trying to get me the lowest premium possible.

True.

And as someone mentioned a while back, you nailed it with your user name.

 

[Scuba]

An update:
Called my agent, she said the replacement cost went up. She said there is a discount for retirees, so now my premium is up 20% instead of 32%. I started my retirement in 2014, missed out on the discount for three years.

I asked her about auto, she said there is a discount for professional (based on education), that is a $50 discount per month.

I really should start shopping around for a better deal, being with them for almost 30 years created this inertia and laziness. I don't think my agent is really trying to get me the lowest premium possible.

Yes, it sounds like you need a new agent. May or may not need a new carrier. In contrast to your experience, my Allstate agent just proactively contacted me and said she had reviewed our auto policy and could save us $100/year with a small tweak that wouldn't impact our coverage. That's what a good agent should be doing - trying to retain you by making sure you feel you're getting good value.

 

[wolf]

Also, live in Calif. AAA, Home, autos, umbrella.

Small house 1500 sq. ft. Skipped earthquake ins. 2016 $ 493
Home owners insurance: 2017 $ 505
carry large deductibles on everything.

 

[athena53]

Also, live in Calif. AAA, Home, autos, umbrella.

Small house 1500 sq. ft. Skipped earthquake ins.

My parents lived in North Myrtle Beach and finally got tired of paying the high cost of windstorm coverage and dropped it although they did have a Homeowner's policy that covered everything else. The house had no mortgage and they figured the biggest value was the land since it was about a mile from the beach. It turned out to be a good gamble. Dad (the surviving spouse) sold it last year for $320K.

My house is worth less than that but I keep the insurance. I live in Tornado Alley.

 

[Crewer]

About shopping around - when we went to the motorcycle show a few months ago we got something free by allowing Progressive to give us a quote for motorcycle insurance. I talked to the person who did the quote and explained we had umbrella that required all our insurances to be with that particular company. She said Progressive now had homeowners insurance and we could get an umbrella from them too (may have been agency not Progressive). So I got a rough quote for the package and it was less than we pay.

I contacted our agent and asked if he wrote Progressive policies (I knew he did) and told him that I had a quote that might be lower cost than what we had now when you add it all up. He told me he didn't recommend Progressive homeowners. I dropped it.

Next time we got a car insurance bill the agent left me a messaging saying don't pay until I talked to him because it should be less. He'd gotten us a discount of some sort. I chalk it up to him knowing we'd shopped around!