Home Owners Insurance

[davidfin]

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 we’ll 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?

[COcheesehead]

Lots of discussion here.
https://www.early-retirement.org/for...ce-117100.html

[youbet]

Quote:

Originally Posted by davidfin Seems all the major insurance companies are raising rates. I’m thinking antitrust investigations are needed.

Our State Farm premiums have been fairly stable (small annual increases) the last few years. From what I've been reading here about what's happening in other areas of the country, Florida for example, I've been pleased.

Hard to know what to say about your area. IMHO, insurance companies are competitive and try to win over new customers. That's why "shopping around" works in most areas most of the time. Thinking that the insurance companies in your area are colluding on prices and competing only through advertising and their agents seems a stretch. But, it's certainly possible.

Have you talked to an independent agent?

Have you called your state insurance commission to see if anyone would discuss it with you?

Despite your neighborhood seeming to be well maintained and safe, could the general Portland area be experiencing a high level of claims?

This article states that Washington has rates significantly lower than the average of the rest of the country. Is it "catch-up" time?

https://www.bankrate.com/insurance/h...urance/states/

[Sojourner]

Quote:

Originally Posted by davidfin I feel I’m being taken advantage of by the insurance companies.

+1000

It is high on my current to-do list to call my HO insurance company and tell them I want lower "personal possessions" coverage than they allow me to pick online. I actually have to talk to someone to lower that coverage below 60% of the rebuild value of my home. In my case, the 60% level is something like $220K, which is ludicrous. The insurance companies are masters at hiding excessive costs like these where most customers will never notice or question them.

Quote:

Originally Posted by davidfin Seems all the major insurance companies are raising rates. I’m thinking antitrust investigations are needed. What’s your experience?

Yes, they are all raising rates (based on my recent HO insurance renewal after getting quotes from several companies). I have no idea how any sort of "antitrust investigation" would work, but I would be all for any sort of action (legal, political, media) that resulted in lower rates.

[RetiredAndLovingIt]

Just a couple of days ago State Farm announced they will no longer write new Homeowner policies in California due to wildfires. Existing customers will be grandfathered in.

https://www.npr.org/2023/05/28/11786...ires-inflation

[Dash man]

Quote:

Originally Posted by RetiredAndLovingIt Just a couple of days ago State Farm announced they will no longer write new Homeowner policies in California due to wildfires. Existing customers will be grandfathered in. https://www.npr.org/2023/05/28/11786...ires-inflation

The real reason is the California state insurance laws base insurance costs on historical claims. That doesn’t allow insurers to use inflation and higher labor costs to justify price increases.

[Sunset]

How do I find an independent agent?

I have looked , seems my googling is poor as I keep getting agents or companies that refer me to an agent (for a hidden slice).

[W2R]

Quote:

Originally Posted by davidfin 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 we’ll 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 homeowners' insurance only went up 3.8%.

My state sponsored "wind-n-hail" insurance (=hurricane insurance) went up a lot more; it's 173% of what it was in 2022.

I should be finding out about flood insurance next week.

My house is located in suburban New Orleans, has never had an insurance claim of any kind since 1965 when it was first built, and my credit score is fine.

[Irishgirlyc58]

Quote:

Originally Posted by Dash man The real reason is the California state insurance laws base insurance costs on historical claims. That doesn’t allow insurers to use inflation and higher labor costs to justify price increases.

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

[Stormy Kromer]

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.

[tenant13]

10 states just filed a lawsuit against FEMA for their raising rates: https://www.cbsnews.com/news/flood-i...tates-lawsuit/

I’m not a homeowner but that seems pretty normal: high risk = high premiums. If you choose to live in an area that is affected by frequent floods, hurricanes or fires you probably should pay more. That’s how other types of insurance that I’m familiar with work. This being FEMA, it also seems like a policy: we encourage you to move. Which seems reasonable as well given FEMA’s role in rebuilding disaster struck places; nobody is forcing anyone to move with a decree or taking over properties, they’re just creating disincentives for living in particular areas.

[Cayman]

- Increasing costs due to inflation, labor and supply chain issues = higher $ to insure
- Higher risks due to climate change (severe storms, wildfires) = higher $ to insure

That said, State insurance regulators may be able to do a better job of regulating. Are they allowing insurance companies to cherry pick?

[fh2000]

With all the noise of companies stop writing new policies in California, I have been holding my breath waiting for my renewal notice from Liberty Mutual thru Geico.

Today, I received their email. The increase is 8.6%. We are in Los Angeles county. Should I be happy that it is not more than that?

[RetiredAndLovingIt]

Yes, my homeowner renewal in San Bernardino county was 11% which I though was reasonable. What is not reasonable though is the coverage of close to 400,000 for personal property. I could easily drop that coverage to half of that, since I have no valuable stuff. I think I called them last year to try and reduce it and was told it's all tied into the dwelling coverage amount so I'd have to reduce that as well.
The earthquake coverage is $562 which also sounds reasonable but it comes with an eye watering deductible of $78,000 and I'm pretty sure that's the lowest deductible I can get with Residence Mutual. Every year, I plan to look for a different company but leave it to the last minute and end up staying with Residence, part of the reason being that 11 years ago I had a massive water damage claim for an upstairs flood and they were there for me. The claim was well over 100,000, I saw some of the checks that they wrote including a hotel for me for 3 months and boarding for my 2 dogs and 2 cats which really cost them a bundle.
California does offer EQ insurance through some insurers but you have to go to them for both the EQ and homeowners policies which were far higher than what I am currently paying and I worry about getting paid if something were to happen.

[jazz4cash]

Quote:

Originally Posted by Stormy Kromer 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".

I kind of enjoy the insurance co ads as long as it is NOT MY INSURER. Insurance is serious business so I don’t quite understand why it is being marketed with cuteness. Now there is a company called NJM claiming it stands for “no jingles or mascots” making light of the others.

[Stormy Kromer]

Quote:

Originally Posted by jazz4cash I kind of enjoy the insurance co ads as long as it is NOT MY INSURER. Insurance is serious business so I don’t quite understand why it is being marketed with cuteness. Now there is a company called NJM claiming it stands for “no jingles or mascots” making light of the others.

I do kind of enjoy the Mayhem commercials.

I grew up with Raymond Burr advertising for the "Independent Insurance Agents" He was pretty serious and I wanted him to find my agent.

[RetiredAndLovingIt]

If interested here is a link to the article

https://finance.yahoo.com/news/insur...142300567.html

[ShokWaveRider]

Our Flood insurance this year went up to $625 from $450 last year here in NE. Florida.

[W2R]

Quote:

Originally Posted by W2R My homeowners' insurance only went up 3.8%. My state sponsored "wind-n-hail" insurance (=hurricane insurance) went up a lot more; it's 173% of what it was in 2022. I should be finding out about flood insurance next week. My house is located in suburban New Orleans, has never had an insurance claim of any kind since 1965 when it was first built, and my credit score is fine.

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.

[Zathras]

Here is a timely article on the subject:
https://www.axios.com/2023/06/06/climate-change-homeowners-insurance-state-farm-california-florida

This may be subscription-walled. If it asks for you to subscribe, Google “uninsurable America”. Or, if you use Apple News, that method doesn’t ask you to register.

They talk about skyrocketing replacement costs, Climate Change & regulatory issues all leading to higher costs.