House insurance cost? up 35% ?

Our house insurance is renewing and jumped 35% been with the same outfit 28 years and very few claims.
I'm assuming this is due to the supply chain issues and fuel prices.
Wondered what others might be seeing ?
TIA

I didn’t pay much attention to mine when it renewed early this year, it always goes up but never dramatically. That may change though.
I’m reading horror stories about Florida and also some of the other Gulf coast states concerning homeowners insurance.
Florida especially, where it became a crisis with insurers dropping out and those that remain raising rates exponentially.
They always have had it bad due to hurricanes, but apparently a big part of the problem is storm chasers. These are the guys who come around and offer to inspect your house for damage and then help you get a new roof, siding etc courtesy of your insurance company other than your deductible.
They file lawsuits and make it near impossible for insurance to deny the claims, and it was financially ruining the insurance companies so many are just closing up shop in Florida. Those that remain charge a fortune.
I know these storm chasers are all over, I’ve found cards and flyers from them on my door. A buddy of mine was boasting about the near free roof, siding, and garage door he got a few years ago after storm chasers knocked on his door.
Everybody might want to think twice about taking these guys up on their scheme, it’s screwing things up for a lot of people and you are participating in a shady scheme when you get a new roof and siding this way.
https://www.wbur.org/onpoint/2022/05/03/inside-floridas-property-insurance-crisis

The web says...

A recent study discovered that homeowners insurance rates have gone up in every state over the last decade and in the midwest the rate increases have been pretty dramatic. The reason for these rate increases varies by state but in most cases, it is more frequent and severe storms that are causing the premium jumps.


But USAA tells me we all pay for others payouts in one form or another. My Auto Ins is way up due to hail and auto thefts 250 miles away in a big city and all my cars sit indoors and I drive under 5k miles a year combined.

Stinks!

Mine renewed in May, it decreased. Of course they thought I had a 17 year old roof when it was right at 1 year old. Might want to verify all the particulars and look for mistakes.

Had a tax assessment lately ?
We've had a huge increase in home values here due to blue-state flight, and the County Assessor has made sure the County grabs the money via property taxes.
Every other cost (construction materials, too), as we know, is WAY up as well.
Could be the insurer is either covering their butts, or simply profiteering.
I haven't had a premium increase yet, but one wouldn't surprise me.

I love this fallacy the insurance companies push and this false narrative.
So the insurance company sends out THEIR adjuster, he agrees the house needs a new roof. And its the fault of the "storm chaser"?

Sounds like a great opportunity for you to start a new insurance company in Florida and take all this business the companies folding or leaving the state are giving up.
You’ll make a fortune!
It would be interesting to hear Not a chargers take on this.
I’ve lived in my house 30 years and never had hail that I’m aware of, or any storm damage, yet companies leave cards saying they want to give me a free inspection for storm damage?
My friend is a mechanic and do it yourself type who has done numerous remodel projects on his house over the years, yet didn’t know his roof, siding and garage door needed replacement due to storm damage until someone came to his door and offered their help getting it all done for essentially free from his home owners insurance?
It’s obvious there is some sleazy stuff going on with this.

Trumpy Bear sent me a million dollars and a ton of linked up ammo for my MG-42. Seig Heil!!!!!!!!!!!!!!!! or MAGA!!!!!!!!!!!!!!, something like that..............

We just received our condo corporation renewal and rates are up dramatically. When asked, we were shown the newest appraisal. The replacement costs for the complex had gone up 18%, most attributed to the ever increasing building material costs.

The cost of wood went up 2 to 4x pre pandemic prices and other material has gone up also so that probably accounts for a fair bit of it. But watch higher insurance rates not come back down when prices level off and go back to normal

Way to post in the general section, goofy.

Were you surprised. I wasn’t.

And how much has your home value gone up over the last two years? Mine has jumped about 20%...

My renewal is due, looks like no increase.

Liberty Mutual raised mine every year until I dumped them. The auto insurance was the same. I guess emu food isn't cheap.

- Home values are way up. The value of the risk you are insuring has increased, so the rates increase.
- Claim frequency (how many claims there are) and severity (how much those claims cost) is up. More big storms, more damage, more claims, more expensive repairs, so the rates increase.

I was not 100% up on how house insurance rates are calculated. When my house became worth 3 times what I was insured for I called Farm Bureau to be sure I was covered. They told me cost to rebuild does not equal cost to buy, so they have a book of construction costs that they use. As the materials & Labor go up, the costs go up accordingly. I haven't seen a noticeable increase but I pay in December so I may be in for a surprise.

Maybe the cost increase to rebuild in other areas is more than around here.

Do you really think insurers want to lose good existing customers by keeping rates artificially high? Because that's what would happen if they did. It costs a lot more $$ to acquire a good new customer than to keep a good existing customer. They want you to stay. Insurers want those costs associated with acquiring new customers to drive growth, not to replace customers they've lost.

You'd think that was true. However, I mentioned my insurer thought my roof was 17 years old when renewal time was approaching. I reviewed my particulars and got that corrected to the 1 year old date my roof actually was. The funny part, not haha funny, was that my roof got replaced do to hail damage, which that same insurer paid for. So they already new the age of my roof, but chose to not charge me that rate unless I found out and fixed it. This from an insurer that likes to talk about their customer service.

So yeah, they are happy charging artificially high rates unless you catch them at it.

It is true, whether you think so or not. You're assuming that they didn't just screw up and fail to update your underwriting info, which is what really happened. If you're a good customer, they don't want you to leave and go elsewhere. Overcharging existing customers is a great way to lose them. Customer retention is king. Homeowners is a loss leader anyway. Insurers don't make money on their homeowners book of business, and don't expect to. They try to lose as little as possible, but they know they're not going to make money. Look at the value of what you insure, relative to what you pay. Then, do the same thing with car insurance, motorcycle insurance, etc. Insurers make money bundling other products with home.

All of that is automated, there was no fail to update. Nobody gave a damn to set the automation up to do that which is why it didn't happen. Then when someone sorts out what happened they can do an "oops, let me take care of you" moment and play it off as if they are taking care of you. Meanwhile they get added gravy on their biscuit from those that don't pay attention. You ever see those "you could save" insurance commercials? How do you figure those insurers think they can save you money? By finding things like this in your old policy.

If they really gave a damn about keeping customers they would have set up the software to automatically update the age of the new roof, recalculate the premium and shoot an automated email to the customer telling them what they did and how much they saved them. That is looking out for your customer and building their loyalty.

For everyone who secretly thinks they were so smart to have bought before the current rise in housing prices or passively-aggressively finding ways to insert these thoughts into casual conversations with others, there are downsides too.

There are going to be serious rises in home insurance rates. Home taxes will go up. A myriad of costs like having a plumber come over will rise too.

Yes, a number of people are wildly more asset rich. But it will cost them more to stay that way.

I'm not one to disagree with you as you likely know more than I about the insurance game. I have been with this company 28 years. 24 with the same agent. Unfortunately he retired and have been through 4 agents since. They just don't seem to care> Everything goes through his secretary and I rarely actually get to talk with him. Same with the previous 3.
We have had very few claims on anything over the years including workmen's comp and business ins. my 1st agent was always there and generally in the office. The new breed act as though it's secondary income or a part time job
I have been told That agents make more money off new customers than old and that is why they are basically ignoring me. Again I'm not questioning your knowledge in any way but am getting d-mn tired of taking it up the backisde. One would think that after 28 years with few claims that it would count for SOMETHING. My annual premiums are in the thousands combined and have been in spite of dropping coverages, no longer having employees and scaling the business way back.
If you have any input, I'm all ears

The insurance company determines your rate, not the agent. And the insurance company makes more money by retaining a good customer than acquiring a new customer. You need a new agency.

So, we agree that someone at the insurance company screwed up. It sucks that you found it and pointed it out, rather than them finding it on their own and fixing it for you. When I’ve been involved in something we screwed up, I will run through a wall in order to fix it.

You are right that when you shop for insurance that other carriers are looking for things that your current carrier may have missed, but they are also looking for things your current carrier doesn’t offer, and they are also hoping that their underwriting guidelines in general will generate a better rate for you.

I’ve been in the industry for 34 years, 27 of them full time. Number of meetings, email, or discussions about artificially raising a rate? Zero. Number of meetings, emails, and discussions about the importance of customer retention? Too many to count. I’ve also never once been told to ignore a mistake, or been prevented from fixing one.

I was just gonna say the same. We JUST closed on the sale of the house we lived in for 22 years. Taxes were always around $6-7000 (up and down with the economy and value of the house). After 22 years we sold for about 30% more than we paid all those years ago. The new people are now paying FIFTEEN THOUSAND DOLLARS in property taxres. I basically couldnt afford to buy my old house with those taxes. We bought a house on an island an hour outsiude Detroit. EXACT same price we sold our old house for. Taxes are $6800. Now that our house is paid for I can cut the flood insurance and save $600/yr. Our house sits up about 5ft above lake level. If IT floods there will be bigger problems. Most of SE MI lakefront property is barely 2ft above the lake.

PS We were paying like $3500/yr for homeowners on old house. Then shopped it around a couple years ago and saved like $1800. Think we are with AAA now for car and home.

I'm thinking, I am tired of battling this every time a renewal comes up As i said they don't really seem to care. BTW if anyone's wondering it's American Family
Not a Charger, could you PM your companies name

The insurance game reeks. Don't they own sky scrapers and hold lots of assets them selves all around the globe?
Here there are scary fires and earthquakes, that they will not insure, or at a minimum jack up rates or findinsurers in TX or London.
Doing the math is maddening. Beside homeowner (must add construction cost and code upgrade), there is car and collector car, (boat and motor cycle), must have liability sufficient enough to protect your ass(ets), Oh, don't think twice about owning a rott, dobie, shepherd, terrier, or numerous others. Know who you invite to gatherings and require byob, Lets not forget annual mileage verification, property fire inspections, agreements to foil wrap and foam your home if there is a fire. I can only imagine what they will pull next to avoid any payouts. There are all sorts of pages of disclaimers and limitations. I know several that hunted around and their existing insurance threatened dropping and increases (can't verify if that was b.s. or not).
This is no b.s. it's what it's like in the rural areas of the west.

I can verify that it's bs. First, each state approves each company's rate structure. An insurer increasing rates for that reason? Any state's Department of Insurance would have a field day with that. Market Conduct Surveys (think IRS audit on steroids), massive fines and sanctions. Second, your insurance company would never know if you were shopping around.

I'm happy to help anyone who has questions about their insurance policies, what they do and don't cover, what other coverages (such as earthquake coverage) you may want to consider adding, etc.

As an aside, and my employer's tallest building is 4 stories high.

I also have American Family, same thing, raised rates by about 30%. I would like to compare rates with other companies but to do it online, but they want all your information. Then sell it so I will get spammed to no end. Also, AmFam won't insure my cargo van, they say too many people use them for "non intended" purposes and won't insure them. So now we need to have 2 companies and lose out on discounts. Progressive handles the cargo van but their homeowners is worse than AmFam, even with the bundle!

Agree about the greedy tax assessors, we have to fight them every year on "their" assessment. This year, they think my value went up over 88K!!!

I have AAA so may check out their prices for insurance.

Not A Charger - do you insure from other states? I would like to see if you can help me save some $$$.

I work for an insurance company, in claims. I don't sell insurance.

For someone who wants quotes from multiple companies, but doesn't want to do so online, my suggestion is this:
- get quotes from an independent agent who sells multiple companies. Be aware that independent agents can't quote for companies that use captive agents (see below).
- get quotes from a few captive agents as well. State Farm, Allstate, Nationwide, Farmers, and some of the other large companies use captive agents, meaning they can only quote that particular company. They're prohibited from selling for other companies.
- be sure you are getting quotes for exactly the same coverages, same deductible amounts, etc. so that you can compare apples-to-apples.

I have a question about liability coverage..
The insurance that protects individuals/family assets.
Home and car is with one company. Collector car with another, cycle with another (sold boat and rv at beginning of covidic).
Each has their own liability. If an umbrella is secured to blanket at a minimum of assets can the home and individual vehicles have have liability dropped?
In fire and earthquake territory we pay a high premium for fire and the state has their own separate eq policy as companies do not have to offer it and it is considered optional.
Regarding personal posessions (tools, collections, furniture, electronics, etc) all the companies cap what they will pay do to the risk and if one wants additional can be easily added (i.e. pay more).
iirc eq does not include personal stuff, solely the home. Good to own a single story wood framed home wrapped in fire protective materials graded to mineral soil 30' around.

With an umbrella policy, you often need to maintain your existing liability coverage with your existing insurer. The umbrella takes over if damage exceed the amount of coverage you have on your car, or home, etc. In order to get a completely accurate answer, you'd have to ask the umbrella carrier.

With regard to fire and earthquake, fire is included in your homeowner's, and is part of comprehensive coverage on your vehicles. Earthquake coverage is not an included part of any homeowner's policy that I am aware of, though many carriers offer an endorsement if you want to add earthquake coverage. I added it to mine for $5/year, but I'm not in an area that gets a lot of quakes, and most of them are very minor. You are right about certain personal possessions having the coverage amounts capped in the basic policy, but you can always add additional coverage for those items.

I pretty much trust my agent, your input is appreciated to confirm.
One item we deal with is wildland fire risk mapping <- Click
Seems all the insurance companies are using it to limit exposure by either not covering or jacking up rates. It's so bad that the state is contemplating providing people an alternative. A couple nearby neighbors are paying 5k ans 12k per year. I feel fortunate, but it's a lot of work to keep rates down. One it talking about dropping fire coverage. I can't imagine that, perhaps earthquake, but fire could wipe someone out even if home is owned. These fires are not like a kitchen fire, they are so bad that hazmat has to come in first and concrete slabs and foundations removed before rebuilding. Process can take 2 to 3 years to rebuild.
Re Umbrella. Is it typical to drop coverage to the lowest on homeowner, cars and such and then get an umbrella in place?

My brother in grass valley is a VICTIM of what you speak. Why he has not moved I don't know

Not only is it not typical, you can't do it.

Maybe I should have posed the question differently.
If a person has insurance and has increased the liability limits due to total assets, is it appropriate to remove the increased overages on the various policies and replace with (the hopefully lower premium) umbrella?
I'm no insurance pro and always deferred to risk management people.

Most umbrella carriers require to to carry a minimum amount of liability coverage on your vehicles, home, etc...when most people think "minimum" with regard to insurance, they think of the minimum required by law. That's not what it means in context to an umbrella policy. A safe bet is that an umbrella carrier will require you to carry at least 100/300/100 on your vehicle, and at least $250k on your home, before you can get an umbrella policy. So, if you want an umbrella policy, and you're carrying more liability coverage than they require, can you reduce down to the minimum amount they require? Yes. Should you? That depends.

Ahhh,the nuance of insurance
Yes, in CA I think they require 15k per person/30k per accident/5k property min on vehicles.
That is a joke for many people as an accident now days could far exceed that.
Wife and I own 6 vehicles a home and other assets. Vehicles are divided between 3 insurance co's for different needs. Each has increased liability (and afaik) property.
It is unlikely more than one or two vehicles will be used at a time and two are used very little, one seasonally, BUT the insurance has to be maintained in full force and effect.
If insurance is dropped so is the registration to use on road.
seems that paying over and over for liability and prop damage is a real moneymaker for ins co's

That's what the state requires. An umbrella carrier's requirements would be much higher. I clearly stated that in my prior post.

The insurance company has nothing to do with CA's registration requirements. In Ohio, all I have to do is sign a statement, saying that I carry at least the state minimum in liability coverage, and I can get my plates. I can drive forever/get plates forever without insurance as long as I don't get pulled over, or have an accident.

As far as carrying coverage on vehicles while they are parked, insurers have started offering usage-based insurance in order to reduce rates for customers like you but it seems that the same people who complain about the topic you mentioned also complain about the plug-in device that tracks your vehicle usage. I will admit that I have concerns about the latter, which is why I've never tried it. But the people complaining can't have it both ways. The insurer is certainly not going to take your word for it regarding when you are using your vehicle, how far you are driving, etc. Collector companies don't verify mileage because they really don't care, it's kind of like putting a padlock on your shed...it's there to keep honest people out. Standard insurers, however, face much higher risks, and are going to need truthful info regarding vehicle usage in order to provide that coverage option.

Also, regarding usage-based insurance. If you don't drive a lot, or you drive more slowly/deliberately/conservatively, usage based insurance is a great idea to consider. If you drive a lot, or are a more spirited driver behind the wheel, it's likely not worth trying.

NAILED IT

I've often thought the insurance should be based on an individuals record rather than the vehicle. Collison and comp maybe on the vehicle as the cost vary's. A 1 ton+ truck may be higher as it can do more damage.

But this is like asking why we pay state sales tax on the federal tax that is on certain items

I believe my agent takes my reporting to verify annual mileage (I'm honest with him). Unfortunately their base-line threshold is 10k/yr if I recall correctly, thus older go on collector coverage.
With 3 "newer vehicles" only 2 have full coverage and for an 'o3 ctd ram I had to agree to "used parts if new is unavailable". Collector vehicles have full.
I think I'll talk with him about an umbrella to see if reducing the various Liabilities can be offset by savings.

OK, So I filled out an online app with policygenius.com 4 days ago, NADA, nothing. OK So I sent them and email asking how long their process takes NO RESPONSE. So Go through the BS online with progressive, I get a comparable quote on the cars, FINE, it says call for a house quote, OK I call the #, spend over an hour with DUFUS who says I have to verify the car info 1st. OK, an hour later he gives me the same quote on the cars WT-O? So I say OK let's talk house, UHH I have to switch you to different dept. and that process normally takes 45 minutes or more. UHH Would you like to purchase the auto policies? NOT AT THIS TIME MORON.
So yesterday AM I call a highly rated independent agent, talk to a nice lady she says Agent XYZ will call me back, NOTHING!!!

IS it me or my age group ?

Any of the big companies that are on tv all the time will Richard you around. I wouldn’t bother with any of them and find a local place with a local guy to talk with. Last time I bothered to check rates, an independent place proudly proclaimed “they could beat anybody because we shop around.” Well State Farm dropped the bomb on that deal. They couldn’t believe my rate there, had to show them the paperwork. They never called back, ever.

I needed some workman’s comp and priced it around. State Farm agent admitted they aren’t that competitive on that. The place I went with for it in turn said if State Farm wants your business on home/auto, they can’t be touched.

None of them will readily cough up dough though. I had somebody hit a parked car and State Farm beat the shop up to where it was 21 bucks over my deductible. Shop owner was pretty peeved. My neighbor is mad that a few people got new roofs for hail damage on our street and his denied it all.

State Farm or somebody else?

Shop owner sounds like a body guy that opened a shop, and not a businessman.

Every experience I have had in the last 50 years with a State Farm insured has been
one person had a 70 Challenger dash / firewall meltdown. She had owend the car since high school and had insured it with SF fo rover 40 years without a claim.
I bid the the jobat 18K if I remember correctly. The adjuster called me and said your estimate is for all new parts. I responded with yes. He said well can't you get used ones much cheaper? I responded with I am not putting 50 + year old used electrical parts on a car as if it burns down again in 6 months you'll be on my as-.
She wound up taking the car to a family friend who bid the job 100.00 under me. OK 4 months later I get a call from her wanting advice as State farm is refusing to pay I politely said it is up your repair shop to come to an agreement with your insurance adjuster who should have authorized the work before starting.

I did get a call from the independent agency today and had a nice conversation with the individual. I will keep you posted

Don’t know. My neighbor was quite upset yesterday when he told me this. I moved here last year and I do recall seeing some roofs go on. I heard him asking the roofer why he can’t get one this time either, and the guy said he had to meet with the adjuster.