Home insurance? Who is the best but cheap? Mine is going up 27%!

[roylt]

Who do you use for home insurance? Do I need it? I have a house that is literally 101 years old and still standing strong. Go without?

I thought I had a pretty good policy but the renewal is 27% more than last year! Plan to call them tomorrow and see if they want me as a customer or not.

Opinions please.

 

[arfmel]

Mine went up nearly 40%. And they increased the deductible from 2% to 5% for wind and hail damage to the metal roof.

Be sure you can get coverage from an alternate company before dropping your current one. Insurance companies are refusing to write new policies in many areas of the country.

 

[kmoore]

Each state has different rules, costs. Along with risks. Even If I lived on your street with same Sq ft home, I might be quoted different figures then you. Really you need to make calls to companies in your state and find the best.

 

[Enigma]

My last rate increase was 150%; 27% would be moderate, indeed!

 

[Jeepnik]

Most of the huge increases are in areas with higher risks. Here, if you "choose" to live in areas with greater risk of natural disasters you should understand that higher insurance costs are part of life. But that doesn't stop them from complaining.

No one, except military and convicts is forced to live in a particular area.

 

[Johnny-Baseball]

Did you know that homeowner insurance (HOB-T) policy premiums are regulated by each state's State Board of Insurance Commissioners? Individual insurance companies can offer discounted rates (the practice is called deviating), which is why individual companies can each offer rates that differ from others.

For those who complain about the self-insurance deduction - on a replacement roof, for example - you can pay a larger premium to eliminate or reduce that self-insurance deductible.

Same for basic coverage: you can pay for the value of the house as of the date insured, or you can pay for "replacement cost" coverage. It's your choice, of course. But your plans for continuing to live in the house, or perhaps selling it in the near future, should impact that decision. Same rules apply to roof replacements, fence/gutter replacements, etc.

Finally, some insurance companies have the "nasty" habit of ceasing to write new/replacement business in a state after a round of natural disasters (tornados, hail, etc.). When they leave, you're often left holding the bag, because the next insurance company you deal with might be very reluctant to offer replacement cost coverage on (for example) your home's 17-year-old roof. By contrast, the carrier who continues to write your business year-after-year would be more inclined to continue to offer that replacement cost coverage.

The insurance agent is truly that - go-between between you (the buyer) and an insurance company. Independent agents deal with multiple insurance companies and thus can help you shop for the best fit. An agent who reps for only one insurance company is unable to do this.

Any insurance agent who attempts to sell you "only" on the annual premium, without first going through all of the variables, is NOT doing you a service.

My late father was a property/casualty insurance agent for 40 years. He taught me the messy details.

 

[sceva]

Most of the huge increases are in areas with higher risks
. Here, if you "choose" to live in areas with greater risk of natural disasters you should understand that higher insurance costs are part of life.

This is not necessarily so. My auto and home went up almost 40% and I am in Illinois; We haven't had big disasters in many years. The companies are raising their rates across the board to offset the looses they are having elsewhere. It is the states with huge losses like California , Florida, Louisiana etc that companies are refusing to write new policies. However, they are raising rates almost everywhere. Little known fact; Insurance companies are required to have X dollars in assets for every X dollars in potential liabilities. When there are a lot of payouts ( liabilities) they need more assets and since their real estate holdings are about the same they raise the costs to the consumer. I learned this in Ohio decades ago when after many years with the same company I was cancelled; I had no claims but their excuse was a speeding ticket 3 years earlier that " they just found out about" My agent at the time told me that the companies real estate holdings had dropped in value so anyone on one side of a line was cancelled.

 

[DGW1949]

Some people say I'm crazy....but....I quit buying what we call "home insurance" over 10 years ago. Reason is, I long ago discovered the hard way that insurance companies would rather make me fight than pay off. Plus, there's so many "small print exemptions" written into most policies that unless you have a total loss, it ain't worth fooling with anyway. Then when I figure in the ever-increasing cost of premiums for a year, add-in whatever deductible(s) has to be eaten when/if I actually use it, it becomes purty obvious that unless I'm planning to have a limb go though the roof twice a year, it's cheaper to just fix common stuff myself.......A racket, that's what it is.

DGW

 

[hittman]

Companies get in and out of the P&C market for a variety of reasons. If they're looking to get out, the rates go up.

I was with Country Company for years until rates climbed. Now an Independent agent has me with Pekin. My auto and homeowners will renew next month and I expect they'll go up as much as 20%.

 

[Danjet500]

Last year I noticed our combined insurance (home, auto and umbrella) coverage had gone up substantially. I called up our agent and asked her if she would look around for a company with lower rates with comparable coverage. She came back a few days later with a quote for similar coverage but $900 less. I asked why was I paying more for insurance than I had to. She replied that they only look for better rates when asked. I'll be asking more often now.

 

[Jack Ryan]

Cheap ain't good and good ain't cheap.

 

[Johnny-Baseball]

Just remember, inflation has run at historically high rates in the recent past. Automobile (new and used) purchase prices are at extraordinarily high levels. The cost of building products is at historically high levels. So all of the "moving parts" that accumulate into higher premiums are increasing.

Added to that is the likelihood that some insurance carriers' "Risk Adjusted Capital" has decreased, which would trigger (by individual state) the mandate that the insurer cease writing new and/or renewal business. That also is occurring in some states.

How does that affect premiums in each of our states? I don't know. But I do know I can query my State Board of Insurance and find out. You can, too.

Insurance companies don't make money if they don't write/renew business. And if they aren't competitive with other carriers' premiums, then they suffer.

None of that makes our lives any easier. But it is another consequence of our current economy.

 

[Jeepnik]

As to companies leaving any given market, for what ever reason, that's capitalism.

Once the government gets involved in setting rates and telling businesses how to operate that's socialism.

Of course it could be argued that insurance is a form of socialism in itself. They have a large pool of people so they can give money to a smaller group that they decide deserves it.

 

[gnappi]

Here's another solution.

Pay off your house, cancel storm coverage, and bank the cost you would have paid in storm insurance AND the monthly price of your mortgage. Insure your home for liability, theft and fire. Down here the biggie cost adder is storm and flood damage.

 

[Jeepnik]

If the big one hits most insurance companies will go belly up. But maybe not. Look at how many tried to weasel out after Katrina. And just as they predicted the Feds stepped in to save the day.

Why the feds think a business or an entire industry is "too big to fail" is beyond me. They should fail if they don't conduct business properly. Someone or something will fill the vacuum left by their demise.

 

[roylt]

Thanks for the input everyone.
I still do wonder if I really need it. I know one here said they don't have any.
I did some calling today. Tried USAA but my dad never was a member and now has passed so I can't get in that club. They sent me to one of their partners but their rate was 40% more than my old rate.
Called progressive which is my current and they couldn't do anything really. couple things changed around could save 40 bucks on the year premium which is nothing. Then the woman said she could transfer me to sales for a new quote. ? I thought how would a current customer save by starting over? Well it worked. I got more coverage for about 100 bucks less then the renewal would have been. still a 25% increase from last year but after two hours on the phone talking to half dozen people I was done. Paid for the new policy and can move on to the next stressor in my life.
Called a shop to get my van fixed next week.... Hopeful I can swing all the bills coming up and stay sane.

Thanks again,

 

[AJGUNNER]

My home owners went from $1100 to just a hair over $2200 upon renewal in December. I bent over and paid it. Been shopping for 5 months now and don't seem to be able to do much better. The big reason here is due to catastrophic wild fires 20-50 miles from me 3 years ago. Now we have a "new" wildfire zone map and unfortunately I am within it. Ye ha, so I am now paying for all the places that burned up 3 years ago.

 

[Jeepnik]

Fire insurance in "wildfire" zones is insane. Just like earthquake insurance in California. I don't have earthquake insurance. My plan is simple. If the house is unlivable I will bulldoze and clear. Then park my Airstream and hook up utilities. Or if removal is too expensive, I'll just put the trailer in the drive and hook it up. Let the scavengers pick the bones of the house clean.

Plus, I can get the property revalued and lower my property tax which would go up if I rebuild.

 

[Bear Paw Jack]

The last thing I'd do is drop insurance coverage unless I was independently wealthy enough to go buy another house if something happened to mine. Truth is companies are walking away from states completely, all over the country. If you have a choice consider yourself lucky. Go talk to an independent agent that reps multiple companies.
Raise your deductible.

 

[Mauser9]

Yeah seems all I read and hear is the high cost of home/auto insurance these days. Seems to have gone up greatly since hurricane Ian. So many Tornadoes this year already in the west and mid-west it is unreal.