Big jump in Homeowners insurance

[Montecfo]

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]

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]

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:

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]

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.

 

[statsman]

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.

A couple more mailers since the above post a week ago. Upon closer inspection, the "offers" are in the ballpark of a 40% increase over last year, assuming our current insurance company follows suit. We should be seeing the renewal notice any day now.

 

[5Miler]

Came back from vacation to find a notice from USAA for my Homeowner's Insurance renewal for June 1. The increase is just under 11% moving to $1699 on my home valued at about $420K. I was upset until I saw some of the increases posted here.

 

[jazz4cash]

A couple more mailers since the above post a week ago. Upon closer inspection, the "offers" are in the ballpark of a 40% increase over last year, assuming our current insurance company follows suit. We should be seeing the renewal notice any day now.

Will you be looking for a better rate or will you accept a 40% increase? Last year I did a deep dive based on the mailers I got and ended up staying with Nationwide. I realized the mailers were just a tease to solicit a phone call. Now I’m finding legit offers that seem TGTBT but still shopping, analyzing.

 

[pacergal]

Just received our home owners insurance, little less than 15% increase this year. I was expecting a jump, as it has been pretty stable the past 3 years.

 

[REWahoo]

Our HO policy renews in October and I'm not expecting a pleasant surprise in the new premium. Did a quick look at recent history to see that our rate has increased 40% over the past three years.

 

[Montecfo]

With my independent agent, my quess is we were flat +- 3% over the past 5 years.

But the initial quotes were for double digit increases. I have switched carriers 3x in past 5 years:

State auto 1 year
Travellers 2 years
Erie current, 2 years

This is for auto, HO, umbrella.

 

[jazz4cash]

I’m in the middle of switching homeowner’s to match my auto insurer for the past 2 yrs. They say they need to do an inspection. Never had that request before.

 

[jazz4cash]

I’m in the middle of switching homeowner’s to match my auto insurer for the past 2 yrs. They say they need to do an inspection. Never had that request before.

Followup: I called the 3rd party hired for the inspection. Bizarre. They kept talking about an interview and a survey rather than an inspection. They can send someone to take interior and exterior pics or I can download an app. I called the insurer mainly to complain that an inspection was not mentioned when they quoted me.

 

[badatmath]

I think last time I changed home insurance they said they had to inspect something. It was from outside if they did because I never talked to them.

 

[Al18]

The insurer probably wants to see the condition of the siding and roof. I got a similar request a few years ago.

 

[grasshopper]

Just received my home renewal NOT today. I will not be renewed letter stated there were to many wildfires in the urban interface. That's what you get living 1/2 mile from a designated national wilderness.

 

[Stormy Kromer]

Everyone hear this.

It costs your insurance company 20% or more to fix your house than it did last year.

How much do you think your homeowners insurance is going up ?

It's not somebody elses premium paying a whole lot of money to fix your neighbor's house......it's yours.

Insurance companies are like the house in a casino. They work on about a 5% margin. If it gets too big a competitor will step in and compete.

The biggest problem is the lack of contractors willing to work for a reasonable profit and rape insurance jobs because they can when the opportunity arrives.

After a bi hail storm some roof contractors make more money than surgeons.....because there are more surgeons than roofing contractors this year,,,,

Insurance companies are just the house, working on their 5%.

 

[harley]

Followup: I called the 3rd party hired for the inspection. Bizarre. They kept talking about an interview and a survey rather than an inspection. They can send someone to take interior and exterior pics or I can download an app. I called the insurer mainly to complain that an inspection was not mentioned when they quoted me.

I just had one of my rental properties be inspected by State Farm. They said they were checking for additions or repairs like a new roof. But then I had to let them know if there had been any significant remodels or appliance replacements or anything like that. They reasoning was that they had to make sure the replacement cost was covered. They ended up raising my premium by $11.90.

 

[Masquernom]

I just received a survey in the mail, asking questions like how old my roof is, if I've made any additions to the house, etc.. Similar to what others here appear to have inspectors actually coming out to your house to see. I guess a lot of insurance companies are starting to actually check on these things.

 

[jazz4cash]

I think it’s quite reasonable if they just would have told me about it as they were presenting the quote. The conversation with the 3rd party inspection company was weird. As much as I HATE the idea of downloading an app and taking pictures myself, it might be the lesser evil. (I thought I was ER’d but now I’m working for the insurer.)The premium is less than half of my old insurer’s renewal rate!