Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Homeowners Insurance Increase!?
Old 05-17-2022, 07:04 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: NC
Posts: 18,231
Homeowners Insurance Increase!?

Just wondering if others are seeing SIZEABLE increases this year - just another nail in the inflation curse. Our premium due in July, with Liberty Mutual, went up 25% from $1345 to $1687/year!!! I have never had a single homeowners claim in almost 50 years. I may get quotes, but since I had my first auto accident last October, I may be between a rock and hard one changing providers right now...

Maybe this is the increased incidences of hurricane, fire, floods and other natural disaster costs that we all get to "share in?"
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 50% equity funds / 30% bond funds / 20% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-17-2022, 07:10 AM   #2
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 19,048
Ours went up by 15% this month. I think it also may have something to do with the increased cost to rebuild or repair your house, as well as price increases in the underlying real estate market. More valuable house and/or more expensive to repair = greater cost to insure.
__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Homeowners Insurance Increase!?
Old 05-17-2022, 07:13 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 6,687
Homeowners Insurance Increase!?

Yes we had 20% increase this year and 10-15% last 2 yrs but also had a claim for wind damage to roof. I shopped around and still could nor beat current carrier (Nationwide). With increases in building materials cost they have a good excuse.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 05-17-2022, 07:15 AM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 48,707
Our policy with USAA increased by 21%. They blamed the increase on rising rebuilding costs.
__________________
Numbers is hard

The key to understanding human behavior is realizing half the population is below average.
REWahoo is offline   Reply With Quote
Old 05-17-2022, 07:27 AM   #5
Thinks s/he gets paid by the post
Accidental Retiree's Avatar
 
Join Date: Feb 2012
Posts: 1,304
For the first 7 years in our house, our insurance ran around $1100-1200/year.

In June of ‘21, the premium went up to $1500.

A month later, July ‘21, we opened a very large water damage claim that we’re still dealing with.

In June ‘22, the new premium was $1700.

So, yes, we have had a couple of big jumps in the last 2 years.
__________________
Chief Retirement Strategist
The AR Group
Accidental Retiree is offline   Reply With Quote
Old 05-17-2022, 07:33 AM   #6
Full time employment: Posting here.
 
Join Date: May 2006
Posts: 519
We've never had a claim on ours either but we only went 30 years. Our rates are just half yours but I have seriously considered cancelling the policy and just going without insurance. The only thing that keeps me from cancelling is the liability insurance. Liability is somewhat unpredictable. Anything can happen. There's homeless people that walk around our neighborhood and I'm afraid they might get hurt on my property even though of course I didn't invite them here.
dmpi is online now   Reply With Quote
Old 05-17-2022, 08:13 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 4,908
We pay $528 a year for homeowners for a million dollar dwelling. If it goes up 15%, that would make it $607. Still cheap.
COcheesehead is offline   Reply With Quote
Old 05-17-2022, 08:36 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 5,651
At our last house, we had a major burglary. And we'd previously had an ATV and a racing bicycle stolen. If you have 2 claims of any kind on homeowners in 3 years, look for your homeowners' rates to double--and stay that expensive for a number of years.

Two years ago, we moved to another city. We made a great buy @ $89 per square foot on the house, but the insurance companies were throwing $4,000+ premiums at us. I finally got Nationwide to insure us @ $2,000 a year. On the first year renewal, they jumped to $2,900 stating the cost of rebuilding (and I assume materials) increased greatly. I also have a small lake house, but it continues at normal insurance pricing.

Never did I realize in my retirement that our largest personal expenses would be for homeowners' and personal car insurance policies.
Bamaman is offline   Reply With Quote
Old 05-17-2022, 08:53 AM   #9
Full time employment: Posting here.
wrigley's Avatar
 
Join Date: Nov 2008
Location: Jacksonville
Posts: 516
Quote:
Originally Posted by Midpack View Post
Just wondering if others are seeing SIZEABLE increases this year - just another nail in the inflation curse. Our premium due in July, with Liberty Mutual, went up 25% from $1345 to $1687/year!!! I have never had a single homeowners claim in almost 50 years. I may get quotes, but since I had my first auto accident last October, I may be between a rock and hard one changing providers right now...

Maybe this is the increased incidences of hurricane, fire, floods and other natural disaster costs that we all get to "share in?"
I live in Florida. I would be doing back flips if my homeowner's insurance was only $1687 a year!

Mike
wrigley is offline   Reply With Quote
Old 05-17-2022, 09:08 AM   #10
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 3,313
You all must be aware of the huge fire that destroyed almost a thousand homes in the towns of Louisville & Superior in Colorado.

Most of the homeowners were under insured. Not through any fault of theirs - they trusted the rebuild amount that the insurers gave them.

I looked at what our house (not contents) replacement value is on our insurance policy and it is laughable. I will be speaking to our insurance company and upping that amount. I think everyone needs to have a good look at the replacement values in their policy - both for contents & the house itself.

We're unfortunately seeing more extreme weather events. And while the complete destruction of a home is still a very low probability event for most of us, the loss can be catastrophic. It is especially true for those of us already retired with no way of replenishing the loss.


Getting back to the subject - we've seen large increases in premiums too.
walkinwood is offline   Reply With Quote
Old 05-17-2022, 09:11 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 5,645
Flood insurance went up 15%. Still waiting for Home owners, assuming they do not cancel the policies in our area.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline   Reply With Quote
Old 05-17-2022, 09:16 AM   #12
Thinks s/he gets paid by the post
skipro33's Avatar
 
Join Date: Sep 2011
Location: Placerville
Posts: 1,661
I live in California in one of the highest fire risk factors and many of my neighbors have had their insurance cancelled with the only option something called "California Fair" Insurance that costs many times more than they were paying private insurance for and without nearly the level of coverage.
My home was completely destroyed in a fire in 2006. Our insurance company fully paid off, no problems, including all our cars, motorcycle, boat, RV, and they continue to be our insurance company today. My home is market appraised in the $800,000 range and I currently pay $2,760 a year for the homeowner insurance which included $500,000 liability so I can buy an umbrella policy to make it $1M. My deductible is $1,000.
I just checked on line and my rate will increase in November to $3,175 a year. That is a 15% increase.

When sizing your policy, bear in mind you do not want to insure for the market value of the house. Instead you want to insure for what it would cost to replace the house in a disaster. In our case, I spent well over $100,000 in clean-up and disposal fees after our fire. Everything has to be recycled, from the concrete foundation to the steel appliances. Each has to be separated out, placed into bins and hauled away. We lost over 50 fully mature oaks and pines that all had to be cut, the stumps pulled, the soil recompacted before we could start rebuilding.

Make sure your policy covers complete replacement costs, not just what the home value is.

Also consider the policy covers 'loss-of-use', which is essentially rent on everything you owned until you are back into your home. Not just a rental, but all furnishings down to the last fork and spoon in the drawer is covered. This amount doesn't have a dollar limit and is time limited to 24 months. The cost doesn't come out of the pot of money to rebuild your home. The policy also covers all improvements on the property; fencing, walkways, decks, etc. It covers all landscaping too. In our case, even the septic tank and leach field were destroyed. When the tree stumps were removed, the septic and leach field were lost. The policy also covers all personal property. Ours pays up to 70% of the home value towards personal property loss. Meaning that for every $100,000 in home coverage, we have $70,000 in personal property coverage. That is a BIG deal when considering the cost of insurance. A home insured for $500,000 could pay out that plus 20% additional for landscaping, 10% additional for other improvements, and 70% for personal property/contents. That doubles the home's insured value to $1M. When we lost our home in 2006, the policy was for $500,000. We collected a little over $800,000 and we still owned the raw land valued at $250,000 on top of that. That's not to say we now owned a home worth over $1M, we didn't. It was worth around $500,000. The cost to rebuild was much more than the home value was. Thank God homeowner's insurance isn't like car insurance where they can just total out the house and pay you it's street value and tell you to buy another someplace else.

Keep this in mind if you have it in your mind to self-insure. You don't just get to walk away from the mess. You will be required to pay to clean it all up and you will still be assessed property taxes, still maintain utilities, and be responsible for any liabilities for anyone; contractors or thieves who come to steal lost jewelry or other salvageable items, who may get hurt on your property. Posting Keep Out signs helps with your responsibility, but to risk no insurance is nothing I want to experience.
__________________
skipro33 stands for Ski Pro 33. A ski pro is like a golf pro, 33 is my locker number.
skipro33 is offline   Reply With Quote
Old 05-17-2022, 10:04 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2014
Posts: 5,655
Mine went from $2,000/year to $2,800/year in Tornado Alley. I was with Farmers and don't ordinarily shop around but that was getting crazy so I went with State Farm and it's $2,100 for the same coverage. I'm guessing my market value is $400K and the replacement value they used is $550K. I moved the Auto and Umbrella, too, and saved about $1,000 over Farmers,
athena53 is offline   Reply With Quote
Old 05-17-2022, 01:43 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 3,362
IIRC, many insurers won't write for replacement cost anymore.

Mine just has a rider with a 50% kicker for actual replacement costs above insured value.

So my model of townhome which used to sell for ~$200k all day long before COVID (latest Zestimate ~$250k, last comp sale $215k) with an insured value of ~$300k would be covered for ~$450k in actual replacement costs.

If I can't rebuild for that limit I guess we're all up the creek.
ncbill is offline   Reply With Quote
Old 05-17-2022, 02:08 PM   #15
Thinks s/he gets paid by the post
PaunchyPirate's Avatar
 
Join Date: Feb 2014
Location: NW Pennsylvania
Posts: 1,064
My State Farm policy goes up from $884 to $933 in June for the year. So not an awful jump, but a larger increase than recent years. Low cost of loving area. Home value in the $200k ballpark. 1964 ranch.
PaunchyPirate is online now   Reply With Quote
Old 05-17-2022, 02:50 PM   #16
Recycles dryer sheets
retired1's Avatar
 
Join Date: Jun 2011
Posts: 275
Yes, it went up at State Farm also from 1300 to 1600
retired1 is offline   Reply With Quote
Old 05-17-2022, 03:08 PM   #17
Dryer sheet wannabe
 
Join Date: May 2021
Posts: 22
Nationwide went up 24% here in the Midwest last Fall. My independent agent found a new company for our area "Openly". It dropped my homeownes cost almost 1K, with better coverage. They don't have vehicle insurance, but Progressive for auto was still cheaper than Nationwide. Bundling might not always help.
CatinKS is offline   Reply With Quote
Old 05-17-2022, 04:30 PM   #18
Full time employment: Posting here.
 
Join Date: May 2019
Posts: 958
I hope we don't get a new and separate thread for everything that's gone up in price with inflation.

I already had mentioned the increase in my homeowner's insurance in some other threads including this one:

https://www.early-retirement.org/for...ml#post2772393
GenXguy is online now   Reply With Quote
Old 05-17-2022, 05:35 PM   #19
Full time employment: Posting here.
ProspectiveBum's Avatar
 
Join Date: Sep 2006
Location: SoCal
Posts: 892
I just experienced this, too, but the jump was far higher than most here are reporting. Our 2800sf SoCal home (situated on a canyon) has had the following annual premiums with Travelers:

2018: $1,335
2019: $1,469 +10%
2020: $1,661 +13%
2021: $2,449 +47%

I did some cursory looking around after getting the quote for 2021, but decided to stay with Travelers, reasoning that all insurers were raising rates due to rising costs of construction and supplies.

I got the quote for 2022 a couple of months ago, and was hoping that it’d at least be flat compared to last year. No such luck. The quote was for $6,449! An increase of 263%! I called them up to find out if the quote was generated in error, and they said it wasn’t. Just fire risk plus cost of rebuilding. I’ve never filed a claim with them. It felt like rather than firing me as a client, they did this to thin out their exposure to what they view as high-risk properties.

It took some legwork, but I found another company called Pharmacists Mutual which matched my previous coverage in every way. New annual premium: $1,504. Phew!!
__________________
I can't complain, but sometimes I still do.
- Joe Walsh
ProspectiveBum is offline   Reply With Quote
Old 05-17-2022, 06:02 PM   #20
Recycles dryer sheets
 
Join Date: Feb 2017
Posts: 167
Here in FL (roof litigation capital of the world...) our homeowners insurance went up $800, from $3400 to $4200. We have a 13 year old roof and our agent said that many companies will not write insurance on a roof this old. Many cut off at ten years and most of the rest at 15.
Luvdogs is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Anyone Else Get Big Increase in Homeowners Insurance Premium this Year? John Galt III Other topics 20 08-27-2013 07:28 PM
Homeowners Insurance WanderALot Other topics 8 04-10-2007 12:11 PM
Florida homeowners insurance fiasco farmerEd Other topics 11 08-19-2006 04:25 PM
Egads! Homeowners Insurance Momtwo Other topics 7 04-12-2006 03:21 PM
Homeowners Come Up Short on Insurance sgeeeee FIRE and Money 7 08-31-2004 04:55 PM

» Quick Links

 
All times are GMT -6. The time now is 04:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.