Anyone insured a big house?

[MichealKnight]

Long story short - I overbought vis a vis house about 8 years ago. Was on top of the worlds business-wise, didn't anticipate having to retire, get out of business so soon.

Current value: 1.75 million.

6600 sq feet........ NO fire hydrants, whole neighborhood is on private wells.

No mortgage owed.

Had a $100k claim 2 years ago...mind you, many people in town had the same claim (record quick rain, basements destroyed).

Last year, paid $7800.

NOW - I just got the renewal.....$25,000+.

I knew it would bump.....but geez.

I maybe right or wrong but at this property value and no fire hydrants....perhaps only a few companies do it. I will have an agent shop it....but man, I think I'm in for it.

Anyone want topless pictures of a 47 year old overweight guy? If so, I can start a paid membership website.

 

[pjigar]

In Texas for that kind of valued house would have home insurance around $8-12K. I know 1M house has about $4-5K insurance. A 500K house has $2K insurance.

It all depends on where you live. For example rural house cost more here. Our country home valued at $350K has $2200 insurance.

 

[aaronc879]

What you paid last year sounds about right, what they raised it to is insane. Get a few other quotes and if they are all close to that high then test the market, see if you can sell at the price you think it's worth.

 

[MarieIG]

When you shop around - keep a close eye on what is actually included, i.e. mold, etc. Some of the exclusions [-]can be pretty sneaky.[/-] may not be obvious without a detailed examination of the policy.

 

[11522914]

Long story short - I overbought vis a vis house about 8 years ago. Was on top of the worlds business-wise, didn't anticipate having to retire, get out of business so soon.

Current value: 1.75 million.

6600 sq feet........ NO fire hydrants, whole neighborhood is on private wells.

No mortgage owed.

Had a $100k claim 2 years ago...mind you, many people in town had the same claim (record quick rain, basements destroyed).

Last year, paid $7800.

NOW - I just got the renewal.....$25,000+.

I knew it would bump.....but geez.

I maybe right or wrong but at this property value and no fire hydrants....perhaps only a few companies do it. I will have an agent shop it....but man, I think I'm in for it.

Anyone want topless pictures of a 47 year old overweight guy? If so, I can start a paid membership website.

What a crazy insane increase. Doesn't make any sense to me other than this. They no longer want you as a customer so they raise it to some ridiculous amount so you'll move on to somewhere else.

 

[Luvtoride]

How about insuring a big condo development? Our 3 building, 189 unit condo community was just hit with a 300% premium increase days before the policy renewed. This increase was so large that each owner was assessed a $2,000 assessment to pay for the insurance.

Drastic price increases are happening to property insurance rates all over the country in every type of property. Yes, you can shop around but you probably won’t find substantial savings with a new carrier.

Let’s all pray for a quiet hurricane/ tropical storm season.

 

[brett]

It is code for thanks for the fish...... but we no longer want your business.

 

[Morgan22]

I guess they want you off their books. I wonder (if you qualify) if your state FAIR plan would be cheaper? Maybe add on a small supplemental policy if needed. $25k sounds incredibly high.

 

[Dtail]

I would shop around. 25k for home insurance sounds ridiculous, even in these spiraling insurance times.

 

[MichealKnight]

Thanks everyone for all the replies, keep em coming. I called the agency that I do my insurance with, I guess the neighborhood changed there as it was sold. Until now, perhaps once a year I called, spoke to the owner....some chatting about his kids and family, or my loving my business- --other than the employees and customers lol -- and quick answers. This time I emailed the new 'Senior Account' person and I got a form letter via email.

20 mins later, a nice young lady - I'm sorry folks - but 20 bucks says she just had lunch at Chipotle, 20% of my net worth says she was reading from a script told me that their company is severing ties with my insurer - and they suspect this is why the rate is jacked up so much. She then told me not to make and renewal payments, and to "give us 30-45 days to place you". I told her that while I realize online quotes have to be dissected....a company I've never dealt with - the agent sent me an $8100 quote within 3 hours.

I politely told her I'm fine waiting a few days even a week but after that I need to get this figured out. She said "please don't place any insurance, we will find a package for you in 30-45 days". Finally I said verbatim: Since this is a recorded line, I'm just stating clearly, I'd like a quote within a week, if not I have no choice but to reach out myself"

In other news, my clandestine $5.82 Burger King Drive thru solo date- was sublime.

As the world turns.

 

[Sunset]

Since you are retired, it seems like it's time to downsize.
Cram the family into a tiny 2,500 sq house will be educational to your kids that unemployed folks have to suffer and make do..

Best to do it now, before they turn 16 and ask for a Lamborghini

 

[MC Rider]

With a big house over 6,000 SF I'd expect big insurance and other bills.
But that is ridiculous.

 

[Koolau]

If you're far enough south, get an above ground pool for the FD to use with their snorkel eauipment. Back in the day, we got a very good fire rate because we had a pond less than 100 feet from our house - which had no fire hydrant for many miles.

 

[MC Rider]

If you're far enough south, get an above ground pool for the FD to use with their snorkel eauipment. Back in the day, we got a very good fire rate because we had a pond less than 100 feet from our house - which had no fire hydrant for many miles.

Interesting idea. Sounds a lot less expensive than a big water tank.

 

[JoeWras]

Interesting idea. Sounds a lot less expensive than a big water tank.

In my sister's neighborhood of big houses, they dug ponds for this purpose. Special standpipes were installed to access the pond water with the pump trucks.


And, hey OP! What's wrong with Chipotle

 

[Koolau]

In my sister's neighborhood of big houses, they dug ponds for this purpose. Special standpipes were installed to access the pond water with the pump trucks.


And, hey OP! What's wrong with Chipotle

But just my opinion, so YMMV.

 

[JoeWras]

But just my opinion, so YMMV.

The pondwater or the Chipotle? Maybe both?

 

[Koolau]

The pondwater or the Chipotle? Maybe both?

They taste the same, so...

 

[freedomatlast]

For comparison, 5600+ square foot house here. Home owner's insurance is $931/yr. We are on public water with hydrants nearby. We're also on the highest point for miles, so the potential for flooding is low.

 

[aaronc879]

For comparison, 5600+ square foot house here. Home owner's insurance is $931/yr. We are on public water with hydrants nearby. We're also on the highest point for miles, so the potential for flooding is low.

That is super cheap. I pay $600 for a 1200sqft house valued at $160K and have all the same things you mentioned.

 

[athena53]

20 mins later, a nice young lady - I'm sorry folks - but 20 bucks says she just had lunch at Chipotle, 20% of my net worth says she was reading from a script told me that their company is severing ties with my insurer - and they suspect this is why the rate is jacked up so much. She then told me not to make and renewal payments, and to "give us 30-45 days to place you". I told her that while I realize online quotes have to be dissected....a company I've never dealt with - the agent sent me an $8100 quote within 3 hours.

I politely told her I'm fine waiting a few days even a week but after that I need to get this figured out. She said "please don't place any insurance, we will find a package for you in 30-45 days". Finally I said verbatim: Since this is a recorded line, I'm just stating clearly, I'd like a quote within a week, if not I have no choice but to reach out myself".

Her statement makes no sense. Homeowners insurance rates are strictly regulated by state insurance departments and rate requests are gone over with a fine-toothed comb. Every assumption made that might overstate the need for a rate increase is picked apart and attacked and every assumption that might have been too conservative is ignored. That's what they do. No company can get away with jacking up rates for some sort of revenge.

If you're comfortable volunteering details about your location- are you anywhere with a risk of wildfires, tornadoes, hurricanes or other expensive potential catastrophes? All insurance companies have catastrophe models and they may vary- both assumptions and the company's own spread of business in the area.

Go ahead and give them time to seek new quotes, but feel free to get quotes from other companies/agencies in the meantime. And do pay attention to fine print. One area is replacement cost vs. depreciated cost. Many companies will pay only the depreciated value of your roof in a windstorm, not 100% of the cost of a new one.

 

[Andre1969]

I just checked my homeowner's insurance. It was $1735 last payment, which was in August 2022. However, earlier this year I had them up the coverage on secondary structures by $100,000. I had a 36x60 pole barn garage built over the course of 2021-2022, and the secondary structure coverage was horribly inadequate.

The house isn't huge. The county thinks its 3929 square feet, but it's more like 2440, plus a 960 square foot basement, and a 432 square foot 3-season sunroom. It's on well and septic, and I have no idea where the nearest fire hydrant is. It has a fairly large swimming pool, about 50,000 gallons...never thought of that as a water source, but good to know they could use it if needed!

The county has it assessed for $858K, and Redfin estimates $847K. I don't think either one takes that garage into account though; probably too recent to be on the books.

The 8/2021 payment was only $1430. 8/2020 was only $1324 and 8/2019 was only $1302.

I have a feeling the next insurance payment is going to go up considerably though. My reasoning behind that, is that I saw the bill on my Grandmom's house, which is much smaller and more modest, only assessed in the low $300K range. And it has a fire hydrant out front. It's a cape cod, maybe 1500 square feet. The bill, due at the end of the month, is $1949!

Different county though. More crime-ridden in general, although her particular neighborhood isn't too bad. But I wonder if that has something to do with it?

 

[OnTheBeach]

I have the same size house, value and no hydrants. I paid $6,300 in 2022 and $8,300 for 2023.

 

[LateToFIRE]

I own a couple of sizable homes, one in a big city, another in the countryside. The city house has a fire hydrant within 10 feet, and a fire station just around the corner, the country house is on well water, no hydrant (but at least there is a big in-ground pool full of water). Running joke in the countryside is that our volunteer fire dept will show up to make sure everyone is out of the house and then that's it... they'll hang out and watch it burn to the ground (not that I blame them). Neither home is in a flood zone. Anyhow, insurance for the city house is more than twice what it is for the country house, go figure.

I've faced some big increases in insurance in the past with the city house (though not quite like yours). Usually means that insurer has, for some unknowable reason, decided they no longer want to do business with you and/or the area your home is in. Of course, shop around, as others have said, and figure who actually wants your business. Also, consider increasing your level of self-insurance (i.e. increase the deductibles). I view home insurance as catastrophe insurance, because as soon as you use it, you generally lose it. So, I go with a $25K deductible on my most expensive property.

 

[rodi]

I think a lot of people are missing some key factors when they are comparing their personal insurance premiums...

States have different rules.
Locations have different construction costs (labor is a big factor in this - not just materials).
Need for flood, hail, fire, earthquake risk vary by location.

Another factor is credit score. Presumably, your credit score is high... but if it's dipped, that could also be a factor.

I'm in CA in a 2000 sf primary home with a 700sf granny flat. Combined policy for both is $2544. ($750 of that is for the granny flat). We have a separate $100 earthquake policy on the granny flat since it's on graded/compacted/retaining wall slab. Factors in our price is based on average cost/sf of construction. I'm coastal CA so the price of the home has little to do with the cost of rebuilding it... The value is in the dirt.

Ours is higher than some other neighborhoods because we're above a canyon and considered high fire risk. Neighbors about 4 blocks away are out of the fire map, so have lower insurance. Only two companies, that I know of, cover us (Farmers and State Farm) Amica, AAA, Allstate all refuse to write new policies in our neighborhood.

Lots of factors go into home insurance premiums... A 6000 SF house in a lost cost of labor area with limited fire/flood risk should be less than a 6000 SF house in a high cost of labor area in a high fire or flood risk area. Location, state regs, etc matter.