Huskerguy72
Single-Sixer
We own our home and 2 rental properties here in Kansas. Like everywhere else, rates have gone up considerably. There are many factors, as mentioned here that are causing these increases.
Prices continue to climb here. So each year when my agent determines our premium they look at what the current value is. An older rental property that was once valued at $50,000 is not valued at $125,000 due to increase in home values in general and mill levy increases. Then throw in the cost of materials per square foot of the home and the combination gets expensive.
We shop around every couple of years but have found State Farm, in our area, impossible to beat. There are also a bunch of gimmicks out there that are confusing where they promise you rate cuts if you drive perfect and all that. For rental property, if we want protection outside of general liability, we have to ensure the property at 80% of its value. We can also raise deductibles to lower premiums but it doesn't amount to much savings. Then you get into full cost replacement or depreciation where you will be left haggling with the adjustor.
I know several landlords who only purchase liability insurance on rental properties. If a hail storm comes through, they pay out of pocket from their savings and earnings. The companies also figure replacement costs based on wide spread disasters. In other words, if you have a house fire, that only affects your house and prices are not likely to go up based on that small claim. However, if you have a widespread storm like hail, tornado or the likes, then contractors will raise rates and there will be a cumulative affect in their pricing. Insurance companies take this into account.
It is getting plum nuts and I can't see any end to it. We try to keep rent prices down but when the city/county assessment goes up, the value goes up which means the replacement cost goes up and the insurance goes up as well because of the value and the materials costs. This will not end well and I fear we are all driving around on these crazy streets with people who have no insurance at all on their vehicles. When times get tough, that is the first thing to go.
Prices continue to climb here. So each year when my agent determines our premium they look at what the current value is. An older rental property that was once valued at $50,000 is not valued at $125,000 due to increase in home values in general and mill levy increases. Then throw in the cost of materials per square foot of the home and the combination gets expensive.
We shop around every couple of years but have found State Farm, in our area, impossible to beat. There are also a bunch of gimmicks out there that are confusing where they promise you rate cuts if you drive perfect and all that. For rental property, if we want protection outside of general liability, we have to ensure the property at 80% of its value. We can also raise deductibles to lower premiums but it doesn't amount to much savings. Then you get into full cost replacement or depreciation where you will be left haggling with the adjustor.
I know several landlords who only purchase liability insurance on rental properties. If a hail storm comes through, they pay out of pocket from their savings and earnings. The companies also figure replacement costs based on wide spread disasters. In other words, if you have a house fire, that only affects your house and prices are not likely to go up based on that small claim. However, if you have a widespread storm like hail, tornado or the likes, then contractors will raise rates and there will be a cumulative affect in their pricing. Insurance companies take this into account.
It is getting plum nuts and I can't see any end to it. We try to keep rent prices down but when the city/county assessment goes up, the value goes up which means the replacement cost goes up and the insurance goes up as well because of the value and the materials costs. This will not end well and I fear we are all driving around on these crazy streets with people who have no insurance at all on their vehicles. When times get tough, that is the first thing to go.