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

[Johnny-Baseball]

Also, if an insurance company's losses chew up the company's claims reserve and eat into the policyholders' surplus, that company may be prohibited (by the state insurance regulators) from writing new business. That happens from time to time...I suspect Cali's wildfire claims have triggered this prohibition. Hurricane-related losses along the Gulf Coast have triggered the prohibition as well.

Sometimes the prohibitions are zip-code specific, other times much broader. Guess you just have to take your chances, or alternatively move to geography where such events are less likely to happen.

 

[Johnny-Baseball]

Appliances' costs have also increased. There was a time during the China-virus times when the west coast's ports were shut down. Remember? Well, one of the items stuck on ships were loads of washer/dryer units, stoves, microwaves, etc.

US homebuilders took a huge hit when this happened. They were unable to procure these units in the new homes under construction. So those houses sat there - finished except for appliances - and remained unsold/closed for months.

My neighbor, regional president of a national builder, told me this shortage played havoc with his company's home sales/closings. Many potential buyers simply voided their purchase contracts, so the builders sat there with completely finished houses and paid the monthly interest and taxes (defined as "carry costs") which quickly chewed up those homes' profit margins. So, the builders had no choice but to jack up the prices on those homes (once appliances were installed) and hope that new buyers would pay those higher prices. Many buyers did, but the builders nationally took a big financial hit. They're still recovering.

 

[epags]

Just scanned all the previous posts. All I can say is that if you are a veteran and have separated or retired from the U.S Armed Forces with an Honorable or General Under Honorable Conditions you are eligible for USAA insurance for your home and/or vehicle and your family members are also eligible. My adult children and my grandson have USAA insurance.
My home is located on the Southern California coast and has an estimated value far beyond what I paid for it 23 years ago (I am too embarrassed to say how much, given how cheap I am) and it is only $4700/year for full current replacement value.
FWIW, while I am not living in a known fire zone, I am living in an earthquake, liquifaction and tsunami zones.
PS, I do not worry avout those issues as much as I worry about hitting the d....m pot holes in the streets of our city.

 

[OLDGUY79]

EVERYTHING has gone up under Biden.
The insurance company that I had for over 40 years upped all my insurances by 30%. That's home. Auto and umbrella too.
With NO claims.
So I shopped around and got educated. Avoid companies that insure near the coasts, or near rivers. Those people have much higher claims than the rest of the country by far. Insurances companies will tell yo they do not spread the costs of claims throughout all policies...that's a lie!
I found that I saved a ton of money with ERIE INSURANCE out of Erie PA.
If offered in your area, check it out.

 

[Johnny-Baseball]

Oldguy79 - I've NEVER encountered an insurance company who claimed, " Insurances companies will tell yo they do not spread the costs of claims throughout all policies."

Specifically, which insurance companies told you that?

 

[OLDGUY79]

AMERICAN FAMILY!!!
Told me that they told me they only raise rates in the immediate area, not all of their customers. But yet, whenever a hurricane hit a coast our inland rates increased!

 

[Star43]

EVERYTHING has gone up under Biden.
The insurance company that I had for over 40 years upped all my insurances by 30%. That's home. Auto and umbrella too.
With NO claims.
So I shopped around and got educated. Avoid companies that insure near the coasts, or near rivers. Those people have much higher claims than the rest of the country by far. Insurances companies will tell yo they do not spread the costs of claims throughout all policies...that's a lie!
I found that I saved a ton of money with ERIE INSURANCE out of Erie PA.
If offered in your area, check it out.

ALL companies have to spread the cost of claims throughout all of their policies. All do. It is called "spreading the risk". They would not survive if they would not do it. The actuaries figure it out.

 

[Star43]

W

AMERICAN FAMILY!!!
Told me that they told me they only raise rates in the immediate area, not all of their customers. But yet, whenever a hurricane hit a coast our inland rates increased!

Whoever told you that is delusional. That was one uneducated opinion, and now you know from your own experience what happens. Spreading the risk is what companies do to survive.....

 

[Johnny-Baseball]

W

Whoever told you that is delusional. That was one uneducated opinion, and now you know from your own experience what happens. Spreading the risk is what companies do to survive.....

It's not just how they survive. It is the foundation upon which insurance is based. OLDGUY79 needs to read what "insurance" means.

 

[Star43]

It's not just how they survive. It is the foundation upon which insurance is based. OLDGUY79 needs to read what "insurance" means.

I think he find out the hard way. Insurance companies only will survive by spreading the risk & they must do this. This is just basic insurance 101. We are not even into the reinsurers, where the buck stops, and I don't even want to get into that. I will finish the year and that will be it. My hair used to be brown, well years ago, and now it is white. That is what insurance will do to you.

 

[hittman]

Got mine today …. Up about 25% as expected.
Because I'm with an Independent agent he's already shopping it. He said they made the decision to shop every customer who had an increase of 15% or more.

 

[Star43]

Got mine today …. Up about 25% as expected.
Because I'm with an Independent agent he's already shopping it. He said they made the decision to shop every customer who had an increase of 15% or more.

In this day and age and if you have the same coverages, I think you did pretty good. I would imagine that guy is shopping most all of his accounts. I am. Have him give you a price for a Personal Umbrella. If it is attached to your Home Owners policy, you can get a pretty good deal. If you don't already, it wouldn't hurt to check out.

 

[hittman]

Edit to CORRECT …. My increase 35%, not 25%.

 

[Star43]

Are you in wooded area , or just out in the country away from fire hydrants OR are you in an urban area ??

 

[hittman]

Urban. Small town of 35k people. Same house for 35 years. Never a claim.

I do know one guy locally who saw an increase of … ready … 105%. Both he and the agent trying to figure it out. Seems no rhyme or reason on that one,

 

[Star43]

Well when you think about, at least you have the insurance. If he did shop it and that is the best he could get....it is what it is. I don't know what state you are in, but it is happening nation wide. As far as the guy with the 105% increase I would think it was because of a claim.....and get this. It would have to be a Small claim....if it was a medium size on up for sure, they just flat non-renew you.

 

[wproct]

We had both home and auto insurance under the same company for probably 40 years. Zero claims on the home and minimal claims on auto. All of a sudden we incurred a 40% increase on our home insurance premium. I checked with our agent who writes for multiple companies and he advised to stay with one one we had as all rates are going up for all companies. Then the next year our insurance company decides to leave our state so we had to find a new insurer, and what an experience. My insurance agent informed me that one of our problems is that we are one of those customers who pays our premiums annually and when ever we experience a rate change it is a lot more noticeable than if we were paying monthly. I guess that was supposed to make me feel better but it didn't.

 

[Star43]

We had both home and auto insurance under the same company for probably 40 years. Zero claims on the home and minimal claims on auto. All of a sudden we incurred a 40% increase on our home insurance premium. I checked with our agent who writes for multiple companies and he advised to stay with one one we had as all rates are going up for all companies. Then the next year our insurance company decides to leave our state so we had to find a new insurer, and what an experience. My insurance agent informed me that one of our problems is that we are one of those customers who pays our premiums annually and when ever we experience a rate change it is a lot more noticeable than if we were paying monthly. I guess that was supposed to make me feel better but it didn't.

I don't buy that either. The reason you pay it annually is to save money by not paying any interest or carrying charges. But you do know what you are paying, so I don't agree with that sentiment. On my own insurance I pay it in full too so I think I know how your thought process there. He is right about all companies going up. I just hope he is really checking the marketplace for you ....The main thing is you have insurance. I know many people who do.not have insurance and can't get it. I know as a lot of them call me for advice. I don't do homes or cars. I do work comp and all types of commercial insurance, but I will try to steer them in the right direction.

 

[bobsyouruncle]

Had the same insurance company for 35 years, no claims,. In 2012 we lost our rural mountain home and all possessions in a wild fire along with 250, I had zero experience dealing with a claim and found myself at a real disadvantage, it felt as though I had hired an adversary and not bought an insurance policy.

The time to find out what is covered is not after the fact. Think about a public adjuster.

 

[Star43]

Had the same insurance company for 35 years, no claims,. In 2012 we lost our rural mountain home and all possessions in a wild fire along with 250, I had zero experience dealing with a claim and found myself at a real disadvantage, it felt as though I had hired an adversary and not bought an insurance policy.

The time to find out what is covered is not after the fact. Think about a public adjuster.

You are so, so correct. After something happens it is too late to check it out. You want to know what coverages you have now, before something bad happens. Read the first few pages as all the coverage information called declarations are there. The whole last part of a policy is just legal verbage & definitions. Check your deductibles too. Ask your agent if you have any questions.