Big jump in Homeowners insurance

[Teacher Terry]

Quote:

Originally Posted by aja8888 No hurricanes in Nevada! But don't you live in a condo complex with HOA coverage for re-roofing?

Yes the homeowner’s insurance only needs to cover from the walls in because it’s a 3 story building. So a roof is not my individual responsibility.

[athena53]

Quote:

Originally Posted by bigcmagor We've self insured for ten years in Florida. When we made the decision, the house would have sold for $50k more than the land value so I figured that was what we were risking, plus the cost of demolition. <snip> I'll admit that I question the wisdom of the decision each time something spins up offshore, but so far it's worked out.

My parents lived in N. Myrtle Beach about a mile from the ocean but on the ocean side of the Intracoastal Waterway. They made the same decision for the same reason- the land was worth more than the house and they had the resources to go elsewhere if it washed away. Dad sold it at a nice price after Mom died so it worked well for them.

I just got my bill- almost no change, which was a pleasant surprise. I'm in the Kansas City area where tornadoes are the biggest risk.

[Chuckanut]

Home owner insurance up 20%.

[RetiredHappy]

Southern Nevada: Homeowner insurance on single family home, $1432 in Jan 2022, $1415 in Jan 2023. Same coverage with same insurance company, i.e. Travelers.

[statsman]

Our homeowner's policy comes due in the next couple of months, and if the current mailers from the various insurance companies are any indication, we may be seeing a sizable spike in the premiums. These flyers usually have suggested premiums that are in the ballpark of what we obtain. What we have been seeing this past week in the "offers" is rather shocking. Central Texas.

[Gumby]

Just got my renewal. Up 15% this year.

[jazz4cash]

Quote:

Originally Posted by statsman Our homeowner's policy comes due in the next couple of months, and if the current mailers from the various insurance companies are any indication, we may be seeing a sizable spike in the premiums. These flyers usually have suggested premiums that are in the ballpark of what we obtain. What we have been seeing this past week in the "offers" is rather shocking. Central Texas.

I did a deep dive based on the mailers we got last year. Many of the estimates were not even in the ballpark and the savings were not worth the effort to switch. We stayed with current insurer that put a new roof on for us in 2020.

[socca]

Quote:

Originally Posted by socca After much research I've come down to three options for renewing (or not) my SW FL homeowner's insurance: (1) self-insure ... (2) Citizens ... (3) Mom & Pop ... Decisions, decisions ...

I went with Citizens. The premium is about 10% higher than last year's (UPC) but the coverage is substantially higher, too. If Citizens wasn't an option it would be a toss-up between self-insure and Mom & Pop.

Citizens has the option to levy a special assessment on all policyholders if it runs out of money after a major disaster. Considering the very reasonable premium, this is fine with me. Another oddity coming in a few years is the requirement for all policyholders to have flood insurance. I'm not going to worry about that now.

[Karloff]

We are in SE FL.

Brand new-construction house (less than 2 years old), everything built up to the latest Miami-Dade code, impact windows throughout, concrete-block, no claims, about as far away from the beach as you can possibly get in our county, no-flood area, etc., etc. In other words, as good as it can get, all things considered. Even then, we are paying about $2400/year.


The situation will only get worse in FL. For this and many other reasons. I personally hate what the state has become. We hope to get out of here in a few years. In the meantime, I will continue insuring as long as I can afford it.

Having said this, the house is paid for, so I have considered self-insuring if the above rate were to double.

[jazz4cash]

DC suburbs.
92% jump.
OUCH.

[Montecfo]

Quote:

Originally Posted by jazz4cash DC suburbs. 92% jump. OUCH.

Hope you have an independent agent.

Our homeowner's went up but auto went down so net was flat.

[jazz4cash]

The current coverage is through an "independent" agency, but I am not to impressed with their service. I've been with them for quite awhile. They "lost" my auto policy business due to lack of response to a similar situation. Now I have a quote from my auto insurer that is 15% less than I'm paying now (plus 5% auto policy discount). The quote from this insurer was 80% higher one year ago. I need to compare the policies carefully, but it feels like the phase of the moon may be a factor in figuring the premium.

[Involuntary Retiree]

I was notified last week that our homeowners' insurance premium is increasing from around $3500/yr to $5700/yr, a 63% jump. This is to insure a home with an approximate value of $325,000. No claims in the last 11 years, although we had a roof claim in 2012.

[jazz4cash]

Well, I’m glad I didn’t get too worked up about mine. Shop around and hopefully you’ll get a fair quote. i was thinking my premium jump might be due to still getting a home+auto discount even after switching the auto, but that would not explain a 92% jump.

Imagine all the folks that don’t pay attention to their annual renewals. Many pay monthly or escrow and won’t see the full increase.

[statsman]

Quote:

Originally Posted by jazz4cash I did a deep dive based on the mailers we got last year. Many of the estimates were not even in the ballpark and the savings were not worth the effort to switch. We stayed with current insurer that put a new roof on for us in 2020.

In our case, the latest mailers are showing a sizable increase over our current policy. I was used to seeing them give us a small discount in some instances, although at reduced coverage and/or an increased deductible. Given our umbrella policy, just received in the mail, went up 25% over last year, I suspect a 25-30% increase for our homeowner's policy is on it's way soon as the policies have the same due date.

[jazz4cash]

I spoke with my independent agent about the premium increase. He said their formula predicts an 18% increase in replacement cost due to cost of labor and materials (inflation). Sounds excessive. He stated that 60% of the premium increase was due to losing the home & auto bundle discount but I think that figure is bunk. My new home auto bundle discount is 5% of the auto premium.

[REWahoo]

Quote:

Originally Posted by jazz4cash I spoke with my independent agent about the premium increase. He said their formula predicts an 18% increase in replacement cost due to cost of labor and materials (inflation). Sounds excessive.

Maybe not. From a recent Consumer Reports article:

Quote:

Between 2020 and 2022, pandemic supply-chain kinks, coupled with heavy demand, boosted the price of residential construction materials by 33.9 percent, according to the Bureau of Labor Statistics. Workers also became harder to find, forcing builders to raise wages. Though prices have dropped for some materials—like lumber—that inflation hasn’t completely abated.

[Gumby]

I'm sure that's the reason for my 15% increase. The risk hasn't changed.

[jazz4cash]

Quote:

Originally Posted by REWahoo Maybe not. From a recent Consumer Reports article:

The replacement cost for my new insurer is 12% LESS than what they calculated last year. Premium is 40% less. Crazy. Random. I plan to bump it up a bit. Need to educate myself on replacement cost vs. market value. Still waiting to hear back from broker but will most likely switch from Nationwide through broker to The Hartford/AARP direct.

[milford]

Another data point in So Cal... just got my renewal for my condo insurance and it went up a whopping 65% from 2022. Its more than doubled since 2020... time to start looking for other options. Its ridiculous that companies don't even think twice about raising prices for consumers nowadays as they have the inflation excuse... a recession is needed badly to restore order.