Home Owners Insurance

[Sunset]

OK, I got my flood insurance bill today. It went up 16%.

So, the sum of all three (homeowners, wind and hail, and flood) went up 53%, mostly due to our Louisiana sponsored wind and hail insurance. A brand new roof like the one I bought in March, costs less than three times as much as the annual premium for wind and hail.

Can you state the wind & hail premium in dollars, as its really unclear the cost.

 

[W2R]

Can you state the wind & hail premium in dollars, as its really unclear the cost.

Sure! I seem to be posting this between two threads, so each was incomplete. Sorry! But here you go. This is for a 1533 sf brick one story house with detached 2-car garage, in the New Orleans suburbs.No insurance claims since the house was built, back in 1965. Very good credit.

Everyone here seems to be getting about the same increases; Frank's is within a dollar or two of mine for flood and homeowners; he hasn't got the bill for wind & hail yet. He doesn't have a garage so we are hoping it might be lower, but we'll see.

Here are my annual insurance premiums:

Year|2021|2022|2023
Homeowners|$480|$503|$522
Wind & hail |$2,071|$2,374|$4,117
Flood |$572|$684|$795
Total |$3,123|$3,561| $5,434

The brand new roof that I had put on in March, cost $12,110 (for both house and garage).

 

[W2R]

This is not a recommendation for anyone but since my "wind-n-hail" insurance way more than doubled I decided to save the money to self insure even though I live in NE Fl a couple of blocks to the ocean. I also never had a claim in over 50 years. I figure in 3 years time I would have enough to pay for a new roof if necessary. Right now my old concrete block house has a standing seam metal roof that is screwed down along the edges of each panel and is crimped sealed around all the drip edges. I also have metal hurricane panels that cover the windows if a strong northeaster or hurricane is approaching.
Flood insurance is not so bad and in my location I think I should keep that.

Cheers!

I thought very seriously about doing that, but being "a chicken" at heart I went ahead and paid this time. By next year I may decide to stop paying like you did, and self insure for wind & hail. I want to see what other people in my neighborhood do.

Frank is probably going to self-insure for wind & hail this year (his due date isn't for a few more weeks so he still doesn't know what it will cost).

 

[Irishgirlyc58]

What's your total? I read today that CA rates have been historically low - unprofitable - with the average homeowner paying $1300.

We pay over $3k and have for years (1800 SF home, not fancy). In Florida. Allstate and Statefarm haven't written their own new policies here in decades.

My home owners goes from January to January.
In 2022 it was $1384.
2023-1585. My deductible is low- I think 500 or $1,000 with replacement cost coverage.
1850 sq ft home with tile roof.
No change in coverage and no claims.
Liberty Mutual and I’ve been with them 25 years- home/auto/umbrella.

I also have flood insurance at $542 for this year. I have the highest coverage available.
But when my area floods it’s not this 2-3 feet flooding. More like 10 feet of water. Even though it hasn’t flooded in the area since 1997- it came <> this close in 2017. So flood insurance stays.

 

[MarieIG]

My homeowners' insurance has been expensive for as long as I can remember. It's in the range of 3.5k. I get the bill in October. The rate remained the same, but the hurricane deductible went from 7.5k to 25k; and the definition of what constitutes a hurricane was very broad/far reaching. I don't have flood insurance.

 

[W2R]

My homeowners' insurance has been expensive for as long as I can remember. It's in the range of 3.5k. I get the bill in October. The rate remained the same, but the hurricane deductible went from 7.5k to 25k; and the definition of what constitutes a hurricane was very broad/far reaching. I don't have flood insurance.

MarieIG, that is rugged! Aaaagh. I sure hope it doesn't get worse in October.

 

[MarieIG]

MarieIG, that is rugged! Aaaagh. I sure hope it doesn't get worse in October.

Thank you! Me too. On the bright side, my property tax did not go up this year. I was afraid they would as I poked the County to update the change in ownership from my parents to me - which I reported to them years ago.

(The property taxes are actually slightly less than the (former) marital premises were (sold in 2021), and are hanging out and about at around 14k range - for a 3br, 1 1/2 bath.)

 

[bcbix001]

I have a small house in Florida. When we purchased 8 years ago, insurance was 3K/yr including homeowners (fire, theft, liability...), wind, and flood. My homeowners and wind are now bundled and have increased 300% to $6K. Flood has only gone up 50% but is scheduled to go up another 500% at 18%/yr. Survived IRMA with only roof damage and Ian with only landscaping damage (not covered). 2 years of premiums will cover all the damages my house has incurred over its 20 year history (Donna, Irma, Ian, were pretty direct hits from major storms, all smaller hurricanes and tropical storms have no damage. As soon as i can pay off my mortgage I will self insure.

A neighbor is moving to Arizona. Her house insurance will drop from over $6K to $0.4K, 93% reduction, that is another option.

Just goes to show how poorly the insurance companies have estimated risk.

 

[davidfin]

Insurance companies are in business to make money. There is plenty of competition out there everyone, its your job to find it.

Realize it costs twice as much to shingle a house as it did 3 years ago, and contractors are HARD to find.

I'm not defending insurance companies but if someone could do it for less than your company .....go find them.

The most irritating ads on TV are the ones from insurance companies inviting you to "Bundle and Save"

Don't act like a victim....go find it yourself. Give Floe a call or that irritating Gecco lizzard or the Caveman or that damn bird that tells you "only buy what you need".

And....don't use the reason that "you haven't had a claim in years" Most haven't but your neighbor who left his faucet on and did damage cost you and many other their premiums.

Insurance companies are businesses and want to make a reasonable profit, if they make too much the state gives them hell. (what other businesses have to deal with that).

You're the consumer.....go find a better deal and quit whining.

Well that’s exactly why there are antitrust laws. If all the companies are raising rates, could they be colluding?

 

[ls99]

My Homeowners policy which is full replacement coverage went up by $90 from last years rate.

 

[Badger]

I thought very seriously about doing that, but being "a chicken" at heart I went ahead and paid this time. By next year I may decide to stop paying like you did, and self insure for wind & hail. I want to see what other people in my neighborhood do.

Frank is probably going to self-insure for wind & hail this year (his due date isn't for a few more weeks so he still doesn't know what it will cost).

I appears that the "wind and hail" insurance is what is going up the most and often more than double from the previous year. This is why I had metal shutters installed. The tracks are permanent but unobtrusive and blend nicely with the white house trim. They take no more than 30 minutes to install all of the panels. The panels are corrugated and stack. For the 7 windows they cover (3 are quite large) the stacked panels are easy to handle and set up even with my arthritis.
The stacked total of them is about 4' long X 20" wide X 8" high. I have them in a shed but they could all easily store under a twin bed with room to spare.
The total cost of panels with installation was $1700 which was much lower than one year of "wind and hail" insurance.
With a concrete block house, standing seam metal roof, and metal covered windows the house should be able to ride out any storm that doesn't wash the town into the ocean.

Cheers!

 

[House Divided]

Our 2nd home insurance in Gulf Shores AL (about a half mile from the Gulf) went up 775/ year but they also increased the coverage by 70k. Which is in line with property values which are up 50%+ from when we bought it in 2020. The first year premium was 1400 this year it's 2800 and coverage increases each year. The way I look at it is it could much worse, the property could be in Florida lol.

 

[Imackenzie]

I don’t think that’s what this says?
Maybe I’m reading it wrong?

From the California Department of Insurance website:
The cost of homeowners and renters insurance depends on a number of factors such as location, local fire protection, age and construction of building, choice of deductibles, application of discounts and the scope and amount of insurance coverage you purchase. Under California law, each insurance company calculates its own rates, subject to California Department of Insurance (CDI) approval. Since each company’s loss experience differs, the rates will differ as well. It is wise when shopping to review and compare all quotations to determine if the coverage, deductibles, and limits are similar to each other. Make a list of what is important to you and be sure to discuss it with the agent. To help find competitive rates the CDI is pleased to offer online premium comparisons that cover over 90% of California’s homeowners and renters insurance market. You can receive these comparisons via the CDI Web site at www.insurance.ca.gov, or by calling

This is baloney from the insurance department--big surprise, its Cali. If the company has huge losses and asks for an increase above what some elected bureaucrat thinks is OK, they go through a ridiculous public comment procedure that takes up to 18 months with no guarantee they get wht they need. By that time they have lost a bunch more which they never recover. There is no free lunch and overall claims in Cali are huge--sadly the people with no claims have to pay part of the price because that's the way the system is set up.

 

[Sunset]

Our homeowners when up 23.3% from last year, to $2,165
No claims for 13 years, none with this company.

It covers wind & hail with a $3K deductible.

No flood insurance, as we are higher up than most others, and never been in danger of flooding in any storm.

 

[bgares]

HO insurance

So in many parts of the country houses have doubled or more in value. Unless you cut your coverage you’re going to be paying higher rates.
Try a $2500 deductible in the case of a total loss $2500 is nominal. Number one Banks legally extract money( credit cards) from us all and number two are insurance companies. In most states if you own your property clear and free you could drop your HO, and for most not a wise decision. Pick the largest building in most major cities and you’ll find they’re owned by insurance companies. Both banks and insurance companies are necessary evils IHO.
Everyone have a great day

 

[jazz4cash]

I am trying to better understand the term replacement cost. I just never thought too much about replacement cost vs. market value vs. assessed value before. Replacement cost may be the most complicated. Two homes with similar characteristics like square footage, lot, # rooms etc. could differ greatly in terms of replacement cost. One may have finer finishes like granite, hardwood, etc. vs formica, vinyl, and carpet. These finishes may be somewhat reflected in market values but not adequately to reflect replacement cost.
My homeowners jumped 90%. Some of the jump was due to unbundling the auto policy. When I shopped around I got a quote from a company that asked way more detailed questions than I was used to. Their replacement cost was on the low side but they backed it up with 150% extended coverage. They also did a fairly thorough on-site inspection of our home. I was really ticked off at first, but it made sense when I thought about it. The premium is 15% less than we paid the old insurer before the jump.

I am still looking into the numbers to decide if we should add more coverage. Also I need to get more comfortable with this insurer. What are the websites/forums with reviews, ratings and commentary from industry insiders?

 

[Sunset]

I always thought of replacement cost as the worry free choice. My house burns down and they replace everything.

None of that

• "your roof is 20 years old so we only cover 1/2 of it." stuff.
• Your leather couch was originally $2K but a used one 10 yrs old is $300, even if it costs $3,500 now to replace it.
• Your $2K bed mattress, sells for $100 on craigslist or free, so we pay you $100 to get a new one.

 

[RetiredAndLovingIt]

I always thought of replacement cost as the worry free choice. My house burns down and they replace everything.

None of that

• "your roof is 20 years old so we only cover 1/2 of it." stuff.
• Your leather couch was originally $2K but a used one 10 yrs old is $300, even if it costs $3,500 now to replace it.
• Your $2K bed mattress, sells for $100 on craigslist or free, so we pay you $100 to get a new one.

I had something similar happen to me. It's been 10 years since my big claim but I had and still have replacement coverage. If I remember correctly anything that I had already replaced and had a receipt they paid in full. Anything that I had not yet replaced, they estimated a value and cut me a check for that amount which was a good bit lower than I was expecting. I had one full year to replace all these items and if I paid more than their estimate then I turned in the receipts and they cut me an additional check for the difference. I do agree that it seemed like a bit of a scam at the time and I wasn't happy about it.
Had you actually replaced the items that they undervalued you on?

 

[jazz4cash]

I always thought of replacement cost as the worry free choice. My house burns down and they replace everything.



None of that

• "your roof is 20 years old so we only cover 1/2 of it." stuff.
  
• Your leather couch was originally $2K but a used one 10 yrs old is $300, even if it costs $3,500 now to replace it.
  
• Your $2K bed mattress, sells for $100 on craigslist or free, so we pay you $100 to get a new one.
  

Replacement cost of furnishings is quite a bit different, I think. If your house burns down you still have the lot but then there’s demo cost to factor in. If it’s HCOL area most of the value could be the lot.

 

[ownyourfuture]

Next month I pay my annual home owners insurance premium. My year on year premium increased 35%. My 2600 square foot home is located in the suburbs surrounding Portland in the Pacific Northwest. I’ve made no claims in roughly 25 years. Neighborhood is safe and well maintained. I feel I’m being taken advantage of by the insurance companies. I’ve called around and checked online. Seems all the major insurance companies are raising rates. I’m thinking antitrust investigations are needed. What’s your experience?

My experience is similar. South central Minnesota. Up 27.96% this year.
I've bundled homeowners & auto insurance with American Family since the year I bought the home (1995)
(Zero claims in 28 years - including auto)
I added an umbrella policy about 5 years ago.

*the umbrella policy $ amount isn't included in any of the following figures*

The only other YOY hike that came close was 1999 up 22.20%
(a town about 10 miles away was basically destroyed by a tornado)

Other large hikes
2004: 19%
2009: 20%
2010: 15%
2013: 16%

In 2015 it went up another 10+ percent.
For 2016, I raised my deductible from $500 to 5K. This brought the premium down to $702.00

With the latest hike, it's up to $1,373 basically a double since I raised the deductible.

I'm going to shop around & also have a sit down with my agent.
One thing I've always had a problem with, is the limits for personal property
(on premises) last year's limit was $157,500, the new limit is $174,900

I cannot for the life of me figure out how my personal property on the premises, could be worth anywhere near 1/2 that amount ?
Hopefully the agent can explain that when I meet with him.

 

[Sunset]

I had something similar happen to me. It's been 10 years since my big claim but I had and still have replacement coverage. If I remember correctly anything that I had already replaced and had a receipt they paid in full. Anything that I had not yet replaced, they estimated a value and cut me a check for that amount which was a good bit lower than I was expecting. I had one full year to replace all these items and if I paid more than their estimate then I turned in the receipts and they cut me an additional check for the difference. I do agree that it seemed like a bit of a scam at the time and I wasn't happy about it.
Had you actually replaced the items that they undervalued you on?

I was just giving an example. Fortunately for me, my house has never burned down.