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Home Owner Insurance Rant
Old 09-07-2013, 04:46 PM   #1
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Home Owner Insurance Rant

No doubt this has been covered before but just got my HO insurance statement for the coming year. Currently paying about $550 for covering an average 1800 sq. ft home, basic coverage, no flood insurance and have the highest deductible allowed. That said I still think it is too darn much. Have been with the same insurance company (autos too) for 35+ year and never had a claim. Why do I feel like I am paying mob protection money and getting screwed at the same time ? BTW State Farm is my carrier.

Am I being unreasonable, what is everyone else paying ?
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Old 09-07-2013, 04:56 PM   #2
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About $1300 for a 2500 sf single-floor. No flood. Can't recall deductible - I have whatever the umbrella policy requires - maybe a $1,000?
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Old 09-07-2013, 05:47 PM   #3
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I had State Farm for home and 2 autos for over 30 years. They just kept raising the rates by anywhere from 7% to 10% a year. I never had a single claim. I finally shopped thru and idenpendent insurance agent and cut the bill by over a third. State Farm is the problem, you are subsidizing all that high priced advertising. Now I see they advertise loans. I suppose as a policyholder you will be paying for anyone who defaults on the loans as well. They won't eat a nickel of it.

Yeah, I am not a fan of State Farm.
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Old 09-07-2013, 07:06 PM   #4
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I pay about $800 for a 2450 sf home with no flood ins in Ohio where risk for fire or any natural disasters is very low. My deductable is high too.
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Old 09-07-2013, 07:12 PM   #5
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All you can do is compare costs in your area and decide for yourself. I'm paying more for the 1200 sf house in Florida than I am for the 4200 sf house in Maryland. And Maryland isn't that cheap either. So looking at comparisons from outside your area is pretty meaningless.
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Old 09-07-2013, 07:18 PM   #6
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That doesn't sound unreasonable to me. In southern Ohio, I pay a little more than that for a similar size house with a 5K deductible and earthquake coverage.
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Old 09-07-2013, 07:20 PM   #7
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Originally Posted by frayne View Post
No doubt this has been covered before but just got my HO insurance statement for the coming year. Currently paying about $550 for covering an average 1800 sq. ft home, basic coverage, no flood insurance and have the highest deductible allowed. That said I still think it is too darn much. Have been with the same insurance company (autos too) for 35+ year and never had a claim. Why do I feel like I am paying mob protection money and getting screwed at the same time ? BTW State Farm is my carrier.

Am I being unreasonable, what is everyone else paying ?
I am paying more that in MO and with a smaller home. Nowadays that sounds good at $550
The Florida folks would love this thread it would be better than comedy central.
Reminds me of a friend from St Louis that went to Chicago and told them about his high house taxes. Taxes in Chicago are about 5 times that of MO. Needless to say he will not be moving to Chicago anytime soon.
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Old 09-07-2013, 07:56 PM   #8
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Reshop your rates evey few years. I combine home, auto and umbrella to get the best overall rate.
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Old 09-07-2013, 08:12 PM   #9
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We pay about $560 for 980 sq ft home with $500 deduct. Allstate with the 2 autos on same policy. No flood insur. or earthquake. It does look to vary across the states. We're in Arkansas.
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Old 09-07-2013, 08:12 PM   #10
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I think you're getting a good deal. My premium is $2853 per year for a 2505 sqft house on the Connecticut shoreline. Deductible is $2000. Without the discounts for having multiple lines with them and a long and good payment history, the premium would be $5775 per year. The premium increased by over 10% from last year -- most likely due to the fact that we have been hit by hurricanes the last two years in a row (Irene and Sandy).
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Old 09-07-2013, 09:04 PM   #11
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Ours is .38/sq ft compared to your rate of .30/sq ft., but real estate in DC area is pricey so that probably accounts for much of the difference. I do have some enhanced coverage. We switched from Geico to State Farm two yrs ago for home + auto. I was extremely unhappy with the way Geico auto for how they handled two claims in 25 yrs. I like having an agent, but it is almost mandatory w/ State Farm because thier systems seem antiquated. It is always a hassle whenever I need to make a change, but the agent is pretty good. My homeowners jumped 20% this year and when I complained they researched and it seemed they "forgot" to add some discounts that I was due.....then there was a series of screw-ups before it got worked out. Loyalty does not pay when it comes to home and auto insurance. Like Travelover says, shop the well known carriers every few years and see if current carrier will match.
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Old 09-08-2013, 07:41 AM   #12
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OP's rates sound quite reasonable to me.

On a related topic, one's credit rating supposedly affects one's insurance premiums, but the relationship is obscure. I was appalled, when checking CreditKarma and CreditSesame, to see our "excellent" credit scores accompanied by "poor" homeowner's and "fair" auto insurance scores, even though we've filed no claims for years and years. The site didn't offer any useful explanation for the insurance scores.

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Old 09-08-2013, 08:20 AM   #13
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Paying $419 with max deductible for a 2250sf house here in Arizona. It had been under $300 until wildfires in the area caused rates to spike up last year.
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Old 09-08-2013, 08:24 AM   #14
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Mine is almost $1700 a year for 3400 sq ft house and one car (DH's car is insured by his company) thru Encompass with a local broker. No claims on the car and only 2 small claims on the house over 22 years (less than $5,000 and less than $2000(after deductible met)) . The $2000 one was a mistake in my opinion but once started I couldn't get out of it. I carry high deductibles of $5k and the highest deductibles on my car that I'm allowed.

The insurance companies have figured out how much they want out of us IMHO. I say this because when I try to increase the deductible on my house, the rate drop is insignificant ($16).

Rate shopping locally doesn't reduce it for me. Progressive may have been cheaper. State Farm was higher.

I need to rate shop again this year.
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Old 09-08-2013, 08:40 AM   #15
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I pay about the same for a ~2,000 sf, 2-year old house. My coverage is robust because IIRC it was cheaper to have better home coverage and a lesser umbrella than the inverse.
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Old 09-08-2013, 08:42 AM   #16
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I'm afraid to shop around. We've been with one company for decades. We have "accident forgiveness" included in our auto premium for "free," and other companies say we must be with them for a year to get this benefit. So if we switched, we would be going "naked" for a year. Plus there is the fear that if we do file a home or auto claim, a new company (that doesn't have the history with us) would drop us.

Perhaps we are just kidding ourselves, and longevity with one company doesn't mean anything.

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Old 09-08-2013, 08:57 AM   #17
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I had my first claim this year. Hail damage on roof. I got my new bill on Sat. My rates went up over $700 per year. My new rates for a 2500sq ft home in MO is now $2685, a 37% increase from last year. I also have flood insurance, thats $340 a year extra.

I'll be calling my agent on Monday. I'm not happy.

I'm starting to think its time to move.
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Old 09-08-2013, 09:00 AM   #18
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I have homeowners and auto with Erie, in Pa. My homeowners has gone up 13% each of the last 3 years. But it is "only" $295 a year for a townhome, with $1,500 deductible, no flood ins, so compared to other folks, I am getting a good deal. I'll wait to see what they do to my auto premium, then possibly go through the hassle of shopping around. I used to be with Allstate, until they started raising my auto by 10% a year, every year, with no claims. Then I dropped them and got much lower rates with Erie.
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Old 09-08-2013, 09:02 AM   #19
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Originally Posted by frayne View Post
No doubt this has been covered before but just got my HO insurance statement for the coming year. Currently paying about $550 for covering an average 1800 sq. ft home, basic coverage, no flood insurance and have the highest deductible allowed. That said I still think it is too darn much. Have been with the same insurance company (autos too) for 35+ year and never had a claim. Why do I feel like I am paying mob protection money and getting screwed at the same time ? BTW State Farm is my carrier.

Am I being unreasonable, what is everyone else paying ?
I wish I only paid $550. I am paying about $1500 a year for a 2000 sq ft. house in North Texas. Allstate raised it on my this year about $300. There has been a lot of hail and tornado damage in North Texas the past few years.
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Old 09-08-2013, 09:24 AM   #20
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I'm paying about $2k, for an old 2500sqft home. I'm about ready to shop around (home / auto / medical ) after being w/ this company for life. I also want to add umbrella. The real question is how much coverage do I want. Min / max or somewhere in between.
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