Another Crazy Homeowners Insurance Premium Situation (resolved)

[Midpack]

I carry auto & home with Geico. They farmed out my home policy to Liberty Mutual. My premium last year was $2,085, about the same as it's been for 3+ years. Just got my renewal notice, exact same coverage, new premium is $5,223. I have never filed a claim in the 47 years we've been homeowners, not a dime. We are not in FL or a high cost-risk weather area.

I called LM directly, and they said they couldn't see a reason for any increase, would I like to talk to an insurance agent? They forwarded my call to Geico (they don't insure homes themselves, so I wouldn't think they'd have any insights)?

Long story short (too late?), Geico got me several new quotes, all much less. I went with Travelers for $1,733, again exact some coverage, in fact a substantially higher replacement value than my LM policy was.

I just don't get how any of this makes sense...but I won't worry about it.

There is no such thing as loyalty to repeat customers in the insurance business, I've had a couple experiences that made no sense. Moral: Make sure you shop your insurance every couple of years.

 

[Dtail]

Yup, I do shop the insurance every few years or when there is a high increase. No real reason anymore to be tied to one insurance company out of loyalty or potentially just laziness.

 

[aja8888]

I carry auto & home with Geico. They farmed out my home policy to Liberty Mutual. My premium last year was $2,085, about the same as it's been for 3+ years. Just got my renewal notice, exact same coverage, new premium is $5,223. I have never filed a claim in the 47 years we've been homeowners, not a dime. We are not in FL or a high cost-risk weather area.

I called LM directly, and they said they couldn't see a reason for any increase, would I like to talk to an insurance agent? They forwarded my call to Geico (they don't insure homes themselves, so I wouldn't think they'd have any insights)?

Long story short (too late?), Geico got me several new quotes, all much less. I went with Travelers for $1,782, again exact some coverage, in fact a substantially higher replacement value than my LM policy was.

I just don't get how any of this makes sense...but I won't worry about it.

There is no such thing as loyalty to repeat customers in the insurance business, I've had a couple experiences that made no sense. Moral: Make sure you shop your insurance every couple of years.

Yep, 35 years with Liberty Mutual with two houses and 5 cars insured. They lost me for the same reason. You are just a number (or a "mark").

 

[Dtail]

Yep, 35 years with Liberty Mutual with two houses and 5 cars insured. They lost me for the same reason. You are just a number (or a "mark").

I was with Liberty Mutual for many years too. I asked them do new customers get a better rate than loyal existing customers? The answer was yes, but there is more.
I then asked them that if I dump them for a year and then come back, will I be considered a new customer and thus get a better rate? The answer was also yes.
Nothing more I need to know.

 

[GenXguy]

Long story short (too late?), Geico got me several new quotes, all much less. I went with Travelers for $1,733, again exact some coverage, in fact a substantially higher replacement value than my LM policy was.

I just don't get how any of this makes sense...but I won't worry about it.

There is no such thing as loyalty to repeat customers in the insurance business, I've had a couple experiences that made no sense. Moral: Make sure you shop your insurance every couple of years.

Did you stick with the same deductible? My insurance company American Family mandated that my hail/wind deductible be increased to $2000 now even though the policy has a $1000 deductible. But my premium went up 103% from 3 years ago, 31% in the last year alone. I have auto / home with same company for a multi policy discount, which complicates things as well. I've never made a claim on my homeowners insurance, have credit ratings over 800, and have no claims on auto for 12 years. Also no tickets or home changes that would affect rates.

I've been with the same insurance company for 22 years and 9 years on my last two homes. Does the new insurance company normally make a visit or have an inspection, take pictures, or such when making the change?

 

[Koolau]

Yep, 35 years with Liberty Mutual with two houses and 5 cars insured. They lost me for the same reason. You are just a number (or a "mark").

I guess they have to pay for those "snappy" commercials somehow!

 

[frank]

midpack: how did you finally end up getting the cheaper quote? independent agent? online? just curious how you went about getting travelers. thanks

 

[Midpack]

midpack: how did you finally end up getting the cheaper quote? independent agent? online? just curious how you went about getting travelers. thanks

When LM passed me back to a Geico agent, they offered to get quotes from other providers. They don't contract exclusively with LM for homeowners, they have other alternatives. Travelers wasn't the cheapest they offered me, but the even lower premium insurer wasn't a big name so I passed on them.

 

[JDARNELL]

I just got my USAA homeowners policy and it went up 51%. I have gone to the insurance broker that does my short term rentals to price my private lines. Should get the quotes next week. Loyalty is out the window.

 

[Luvdogs]

We received our renewal a few days ago (at least was not a cancellation like most years). Went from about $5000 to $5800 which actually is not bad... I'm in FL and we've been cancelled many times (no claims). We have a no-name company, no idea if they could pay the claim, etc--and not a fancy house.

Our roof just hit 15 years which is said to be the cutoff for many/most companies. Our roof was supposed to be some sort of "deluxe/long lasting..." roof-at least that's what they sold us.

We've had no problems with it but whenever we get cancelled, the insurance company sends out a guy to check out our roof which I don't like. So I'm just paying the 15% and will see what happens next year.

 

[Texas Proud]

My oldest sister got her quote in the mid $4K range from $2K last year... she went shopping and found out that was the going rate... only one quote lower but it was only $100 savings...

Mine stayed about the same as last year and I am about 1 mile from her so do not know what happened...

 

[VanWinkle]

I put 5K in a money market account and raised my deductible to 5K. Current rate
is under 500.00 per year for homeowners here in Tennessee. RC of 500K. I am
amazed at some of the rates around the country.

 

[Texas Proud]

I put 5K in a money market account and raised my deductible to 5K. Current rate
is under 500.00 per year for homeowners here in Tennessee. RC of 500K. I am
amazed at some of the rates around the country.

I wish I could have $5K deductible... mine is 2% for most things... 4% for others and I think 5% for hail... and I still pay $2400 which is cheap compared to the over $4k my sister is paying for a cheaper house...

 

[jollystomper]

Above is a chart of our homeowners insurance via Geico (Travelers) since 2000 (as far back as my current quicken dataset has). Replacement value policy, 3000+ square foot house on over an acre of land.
There has definitely been a rapid acceleration since 2020. We raised our deductible to $2K to shave off about $300 from the last bill. Geico checked but, through them, Travelers was the cheapest option.

Total payout has been about $25K, We have owned the house since 1990, so I estimate our total homeowners insurance premiums since then is about $28K. We have never filed a claim.

 

[Koolau]

Just saw a news piece yesterday that said all the insurance companies are going to recoup their losses for the Lahina fire from every insurance payer in the Islands. HUGE rate increases are in the offing. The insurance companies are already threatening the state that they'll pull out completely if they are not allowed to increase their rates by huge amounts. The state is looking at some sort of pool, but my guess is they'll cave as usual.

Unfortunately, going after HECO or any other business or even the state for poor planning/management/reaction leads to the same situation. Whoever ends up paying will just take it back in future taxes or rates or premiums. What else is new.

 

[Texas Proud]

Just saw a news piece yesterday that said all the insurance companies are going to recoup their losses for the Lahina fire from every insurance payer in the Islands. HUGE rate increases are in the offing. The insurance companies are already threatening the state that they'll pull out completely if they are not allowed to increase their rates by huge amounts. The state is looking at some sort of pool, but my guess is they'll cave as usual.

Unfortunately, going after HECO or any other business or even the state for poor planning/management/reaction leads to the same situation. Whoever ends up paying will just take it back in future taxes or rates or premiums. What else is new.

Of course they will... it is not like they are there to bleed money....

BTW, everybody in Texas is paying for the sky high cost of the freeze a year or two ago... the state has allowed them to charge a small fee for (not sure of this) up to 30 years...

Yep... 30 years...

https://www.chron.com/news/houston-texas/article/texans-winter-freeze-bill-17575398.php

 

[wrigley]

I've had Geico auto insurance for over 30 years. They won't touch my house in Florida for homeowner's insurance. It's a little different being in Florida when it comes to homeowner's insurance. I just go through a broker and he finds me the best policy for the money.

 

[Koolau]

My point was that "those" (whoever they are) who caused the fire (or didn't properly deal with it) will never have to pay and so the insurance company will pay. But, of course, insurance companies never really pay. They just take from their clients and distribute to those with losses. SO, we all just pay for each other. No one ever actually gets penalized for "bad" behavior. YMMV

 

[Texas Proud]

My point was that "those" (whoever they are) who caused the fire (or didn't properly deal with it) will never have to pay and so the insurance company will pay. But, of course, insurance companies never really pay. They just take from their clients and distribute to those with losses. SO, we all just pay for each other. No one ever actually gets penalized for "bad" behavior. YMMV

That might be a bit harsh.... what were the people in town supposed to have done? Wildfires happen all the time and destroy a lot of property...

BTW, I would say the same for the freeze in Texas... and heck, even more so as other parts of the country can deal with a freeze but the Texas grid cannot? But we are all going to be paying for the problem AND the really bad decisions that were made in real time that cost a bunch of money...

 

[Koolau]

That might be a bit harsh.... what were the people in town supposed to have done? Wildfires happen all the time and destroy a lot of property...

The "people" should never have experienced this problem. I hope I didn't suggest that they were responsible as such.

Oahu is less prone to wild fires, though they happen. Our Condo strips the hills on our property of dead brush and grasses to help prevent fires. Most home owners would do the same. On Maui, lots of brush was left in areas that the "people" had no control over. I'm not certain who would be responsible for that, but "someone" failed to address the issue. Also, there is suggestion that HECO failed to turn off power at the appropriate times (I don't think that's been proven/disproven.)

Of course, you could sue someone or some company and bankrupt them, but realistically, no one can cover those losses - except "US" (as in all of us who pay insurance premiums in the Islands.) YMMV

 

[JDARNELL]

So I have two quotes which are within 4% of what I was paying with USAA for last year vs the 51% increase they are wanting. I am going to go back to USAA and see the impact if I raise my deductible however I know there is no way they are going to be able to touch the quotes I have gotten. I am sure they have a lot of exposure to these large loss areas as compared to where I am here in Tn now.

 

[Koolau]

So I have two quotes which are within 4% of what I was paying with USAA for last year vs the 51% increase they are wanting. I am going to go back to USAA and see the impact if I raise my deductible however I know there is no way they are going to be able to touch the quotes I have gotten. I am sure they have a lot of exposure to these large loss areas as compared to where I am here in Tn now.

Most of us here (arguably) keep too low (numerically) deductibles. Supposedly, the "rule" for insurance is to insure for something you can't afford during a loss. SO higher deductibles (numerically) are something most of us can handle in order to lower spiking rates.

 

[frank]

I just got quotes from 4 different companies for the next year. they range from 3260. to 3684. so price is comparable for all of them. my question is if you had to make the choice of one of the four ( state farm, american family, cincinnati, or acuity) which one would you go with? do not really trust the insurance companies, I can't really get a clear answer after checking reviews. just asking for opinions on which one you would go with.

 

[marko]

We insure everything through a local family owned insurance agent. Been with them since my great-grandparent's insured with their great-grandparents. Incredible personal service.

They're always on the lookout for the best prices and a few years ago saved us over $2500 on HO premiums.

Best of all, when we change cars they handle everything including going to the RMV, which is a huge PITA because we have special plates.

 

[Koolau]

I just got quotes from 4 different companies for the next year. they range from 3260. to 3684. so price is comparable for all of them. my question is if you had to make the choice of one of the four ( state farm, american family, cincinnati, or acuity) which one would you go with? do not really trust the insurance companies, I can't really get a clear answer after checking reviews. just asking for opinions on which one you would go with.

If prices are comparable, I'd go with 1) A good local agent and 2) National recognition (so, probably State Farm if all else is equal.) BUT, YMMV.