Big jump in Homeowners insurance

D

dm

Full time employment: Posting here.
Joined
Mar 15, 2005
Messages
828
Location
Punta Gorda, FL
It comes as no surprise that my homeowners policy increased in cost. Part of living in SW Florida.

It went up 50% this year. They increased the value of the house 10% which is probably on the low side.

Flood insurance went up 18% for same coverage.

I’ve been retired now for 15 years and 2007-2010 didn’t worry me much, but the last few years of inflation has been a concern.
 
We are in central Florida so severe damage from hurricanes are much less likely compared to the coastal areas. Our homeowner's insurance went up from $1,260 to $2,293. That is about an 82% increase. No claims and Progressive/ASI insurer.
 
I live on a canal, and Ian pretty much hit us dead on, but no surge. I had about $30,000 in damage, my first claim. Insurance went from around $5,000 to $7,500. And I get a pretty good deduction due to wind mitigation. Wind deductible is $10,000.

Flood went from $1,700 to $2000.
 
Our HO insurance for our 1200 sf sfh in Bonita Springs went up from $2300 to $3500. A bit over 50%. We survived both Irma and Ian with no claims, but Ian destroyed a good portion of the area we live in. I was expecting the increase. But what I wasn't expecting was that when we shopped our HO insurance with 12 other companies, only 2 would even cover us (at a higher premium). The other 10 rejected us for one of the following reasons:

Ineligible: Year of construction
Zip code closed for new business
IIneligible: Distance to coast

You'd think the fact that the house (built in 1983) had survived 3 major hurricanes with no damage would be a point in our favor, especially with a new roof, new windows, and wind mitigation. But no.

We've been thinking about selling the house, and this situation is adding to the confusion. When we first bought the house, self insuring was an option, but with the price inflation it's out of the question now.
 
Last edited:
Yup ours went from 1500 to 2100 with no claims. FLA is definitely out of control in this insurance coverage.
 
I visited with my agent this last week. He said to expect a 25% increase from all companies. He's an independent agent representing many companies. We're in the upper midwest.

He told me that the company I'm with is using a 10% inflation guard increase this year. So coverage amounts will increase 10%. Plus, there will be a 14.5% rate increase to keep up with increased building repair costs.

Our area (Minnesota) was hit hard with several windstorms last year. Three years ago you could shingle a house for about $300 a square. Last summer contractors were bidding $450 then $500. Supply and demand.

The company I am insured with spent $1.15 for every dollar of premium it took in last year. It took millions out of it's surplus to pay claims.

Some major companies have pulled out of the state due to bad loss history.

A 25% premium increase will be about normal for 2023. If you find a company with lower rates than you have now ask when the last time they had a rate increase. The lowest company today might not be next month.
 
There was another thread about the same topic on here. I posted in that thread that I live in Colorado and our home owners insurance went up $35 total or 6% for about $750,000 in coverage. I just paid it in January. So it’s not a 25% increase everywhere.
 
COcheesehead said:
There was another thread about the same topic on here. I posted in that thread that I live in Colorado and our home owners insurance went up $35 total or 6% for about $750,000 in coverage. I just paid it in January. So it’s not a 25% increase everywhere.
Click to expand...

Yes, our homeowners insurance stayed roughly the same when it renewed last December (north of Houston, Texas), but our auto insurance jumped a bit. We shop it through a broker every year now.

What's going on in Florida is plain crazy..
 
harley said:
When we first bought the house, self insuring was an option, but with the price inflation it's out of the question now.
Click to expand...


We’re down here in Southeast Florida with a 1994 built home and ours went up from $4600 to $6400 with no claims ever. We were told it’s the replacement costs that drove the increases due to soaring home values down here. At this annual insurance rate plus the windstorm and other deductibles, I’m looking at an out of pocket cost approaching what I would pay for a new roof if I ever did put in a windstorm claim. Based on that, we’re seriously considering self insuring when we get our renewal next November, particularly if they raise us significantly again.
 
Count yourselves lucky. My homeowners insurance is over $4300/year and my house is only worth $250k. Southcentral KS. HOI rates here are ridiculous! I've owned this house for 16 years and never had a claim. Have 2 vehicles, a travel trailer and house with AmFam. Shop around every year and this is the cheapest.
 
We're near the NC coast, about a mile inland from the ICW. My combined property tax and Insurance (homeowners + wind & hail) has doubled in the last 3 years. $5k deductible for wind and hail.

I can't wait to see what this year's policy will cost. :LOL::LOL:

I like living here so I just roll with it for now.

I grew up in Jacksonville and Jax Beach, FL until 1976 and don't remember any noteworthy storms. When the storms came by they were offshore - a blessing for local surfers!
 
Young Daughter lives in Orlando.

Last year, $2,333.....this year $2,312 when she switched to Citizens.

(the previous company proposed a hike that caused her to ask her agent to find something better)

Zillow thinks her house is worth $375,000
 
Last edited:
I just damp Allstate, and went w/ a broker. No more loyalty for old customers.
 
Inflation, house values and increased danger from disasters all have combined to cause rates to spike.
FLA has all those issues in spades. You couldn’t pay me to live there.

Yes, everywhere has disasters, but the potential for catastrophic damage to large swaths of the state is ridiculous, and thus insurance is as well.
 
FlaMariner said:
Here is a recent (2/2023) bankrate article comparing home owner insurance rates by state....Shockingly, Florida is not the highest.

https://www.bankrate.com/insurance/homeowners-insurance/states/
Click to expand...

I see Colorado is up there, but it’s so much zip code dependent. Folks who live in the major metro areas along the front range pay a higher premium for living in the hail belt on the east/central side of the state. When we lived there hail could fall and cover the ground in inches like snow and be the size of golf balls.

Where I live on the Western Slope hail is rare and if any, pea sized. We pay about 25% of what that article states is the average cost in Colorado. So take those figures with a grain of salt.

HCOL vs LCOL
 
dm said:
It comes as no surprise that my homeowners policy increased in cost. Part of living in SW Florida.

It went up 50% this year. They increased the value of the house 10% which is probably on the low side.

Flood insurance went up 18% for same coverage.

I’ve been retired now for 15 years and 2007-2010 didn’t worry me much, but the last few years of inflation has been a concern.
Click to expand...

I also live in FL. ALL of my insurance increased like yours this year. Living in Florida is getting crazy expensive. My son's flood insurance went from $600 a year to $3.600!! And, his mortgage holder requires it. He's leaving FL.
 
2023 Insurance increase

My home and auto insurance premium is increasing by 26% this year. My agent says that this is the typical increase. I am getting other quotes. Is this the typical increase for you?
 
treypar said:
My home and auto insurance premium is increasing by 26% this year. My agent says that this is the typical increase. I am getting other quotes. Is this the typical increase for you?
Click to expand...

No. 6% on homeowners. 9% on auto. Umbrella stayed the same.
 
Couple thoughts on the increases:
1) Most homeowners policies have replacement coverage for the dwelling. With the big increases in materials and labor costs, that is a big factor in the increases in replacement cost calculation. This has nothing to do with weather. Blame inflation for this one.
2) With all of the recent big claim storms, the insurance company reserves are being depleted. So increases are not only to cover upcoming claims, but also to build up those reserves. So this is kind of weather related, but after the fact. Were rates lower in the past than they should have been to maintain sufficient reserves for claims? Doesn't really matter at this point, the insurance companies need to ensure they have sufficient reserves that they can cover upcoming claims and also not go bankrupt. So we all pay more.
 
I have a policy from Progressive that gives you up to 50% above the coverage limit in case the replacement expenses are greater than anticipated. It still only went up 6%.

My independent broker found this one for us.
 
After much research I've come down to three options for renewing (or not) my SW FL homeowner's insurance:

(1) self-insure

The most interesting option. Could be brilliant or incredibly dumb in retrospect. Selecting this could make hurricane season very exciting. :)

(2) Citizens

The premium is substantially higher than what I paid last year (UPC), but I'm getting more coverage (reducing coverage isn't an option according to the agent). As a non-profit perhaps Citizens would be more likely to honor an honest claim (don't know :confused: ).

(3) Mom & Pop

The premium is roughly the same as last year but the coverage is substantially lower (e.g. roof is actual cost value rather than replacement value). The online reviews (a biased sample) are extremely negative (folks with a good experience don't post).

Decisions, decisions ... :cool:
 
socca said:
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 ... :cool:
Click to expand...

It would be more interesting if you stuck some numbers in the choices.
A difference of $200 is one thing, a difference of $10K is another .. :popcorn:
 
You must log in or register to reply here.

Similar threads

FiveDriver
What exactly does FEMA Flood Insurance cover?
Replies
5
Views
448
FiveDriver
FiveDriver
SecondCor521
Another thread on homeowner's insurance increases
2 3
Replies
62
Views
8K
braumeister
braumeister
S
Drop damage insurance on rental properties?
Replies
14
Views
990
ncbill
N
T
  • Locked
Home insurance in Florida is out of control!
Replies
17
Views
1K
Alan
Alan
2
Reducing stock exposure in Retirement, age 60+
4 5 6
Replies
144
Views
8K
Onda
O

Latest posts

Back
Top Bottom