Homeowner Insurance Premiums

[TPD]

Wow - mine took a huge jump! I've got what is called inflation protection on my policy so the replacement cost of my house changes each year based on inflation. As you guessed, it increased significantly this year - 21%! Which means my premium also increased about $600 annually or 29%! I remember when my annual policy was only $600 and now I have increases of $600 - FJB!

So just a warning to those of you who do escrow for your homeowners insurance, be prepared for an increase when your policy comes up for renewal.

 

[LightRoasted]

For your consideration ...

Wow - mine took a huge jump! I've got what is called inflation protection on my policy so the replacement cost of my house changes each year based on inflation. As you guessed, it increased significantly this year - 21%! Which means my premium also increased about $600 annually or 29%! I remember when my annual policy was only $600 and now I have increases of $600 - FJB!

So just a warning to those of you who do escrow for your homeowners insurance, be prepared for an increase when your policy comes up for renewal.

All, insurance companies, across the board, are the first to raise rates, typically higher that the official government inflation rates, to offset inflation. Actually, one can use insurance companies as a barometer to ascertain what the actual increases in inflation are. So if your company is increasing rates by 21%, you can pretty much be guaranteed that is about a close to what the actual inflation rate is. Not the BS numbers thrown out by government and the financial media.

Which I am sure you can also witness in the wholesale prices in your cost of goods.

 

[Hessian]

I was muttering about the ridiculous price jump...on my State Farm acct. It is currently 300% higher than about 15 years ago. I am wondering if I need to consider payment with cords of wood, and some bartering of rusty tools.
This is again the criminality of exploitation of the middle class.

 

[LightRoasted]

For your consideration ...

While rearranging some things, I happened to stumble on an old home insurance policy for 2012. My rate then was $370. This year it is now $998. And have never ever filed a single claim. That is an increase of 169.73% over ten years. That's an average inflation rate of 16.973% per year. So the question that needs asking ..... has everyone's income increased 169.73% over that 10 year period? Inquiring minds and all that.

 

[Sneakers]

For your consideration ...

While rearranging some things, I happened to stumble on an old home insurance policy for 2012. My rate then was $370. This year it is now $998. And have never ever filed a single claim. That is an increase of 169.73% over ten years. That's an average inflation rate of 16.973% per year. So the question that needs asking ..... has everyone's income increased 169.73% over that 10 year period? Inquiring minds and all that.

Mine has gone up, but not nearly that much. Seems that rates are more determined by the local crime and police actions than they are by filing claims.

 

[OccamsRazor]

For your consideration ...

While rearranging some things, I happened to stumble on an old home insurance policy for 2012. My rate then was $370. This year it is now $998. And have never ever filed a single claim. That is an increase of 169.73% over ten years. That's an average inflation rate of 16.973% per year. So the question that needs asking ..... has everyone's income increased 169.73% over that 10 year period? Inquiring minds and all that.

Then = $370
Now = $998

My calculator lists that as a 270% increase

 

[ArkRescue]

From hearing about claims being denied and/or insurance not being renewed due to filing a claim, I have concluded that anyone who is military or related should look into USAA as I hear they do not deny claims and they make sure every customer is happy with the repairs/work performed. I checked on car insurance and they are a tad higher than what I pay with Geico however I am told by customers they pay the claims and make the process easy which means they could actually be the better deal in the end if I need to file a claim? I rarely have ever filed an auto claim in my life so going for the cheapest rate is usually what works best for me.

 

[spr1975wshs]

Mrs. and I have been with USAA since late 1978.

 

[HemiHauler]

Then = $370
Now = $998

My calculator lists that as a 270% increase

That’s an absolute percent change. To make any sense of it, you gotta annualize - you should get 13-14% if my back-of-napkin calculations are correct.

But big numbers out of context are scary and people like to be scared.

 

[OccamsRazor]

That’s an absolute percent change. To make any sense of it, you gotta annualize - you should get 13-14% if my back-of-napkin calculations are correct.

But big numbers out of context are scary and people like to be scared.

DOH! Yep... my numbers still take into account the original price.

Still, who was getting a 13-14% wage increase yearly? Only the people who have ZERO worries about these increases.

 

[HemiHauler]

DOH! Yep... my numbers still take into account the original price.

Still, who was getting a 13-14% wage increase yearly? Only the people who have ZERO worries about these increases.

13-14% wage increases? Not too many I don’t think.

13-14% market returns? EZPZ.

 

[PeoplesElbow]

For your consideration ...

While rearranging some things, I happened to stumble on an old home insurance policy for 2012. My rate then was $370. This year it is now $998. And have never ever filed a single claim. That is an increase of 169.73% over ten years. That's an average inflation rate of 16.973% per year. So the question that needs asking ..... has everyone's income increased 169.73% over that 10 year period? Inquiring minds and all that.

$370 for a year? Do you live in a porta potty?

 

[PrchJrkr]

With the joe tax (inflation) the cost of building supplies has sky rocketed. Why wouldn't home owners insurance jump?

 

[LightRoasted]

For your consideration ...

$370 for a year? Do you live in a porta potty?

That was the 2012 rate. For my modest humble abode.

Then = $370
Now = $998

My calculator lists that as a 270% increase

Reckon my maths was off a bit. : )

 

[TPD]

This time last year, I spent hours talking with insurance salespeople trying to lower my premiums because of the huge increases I was experiencing with my current insurers. I went from dealing with 2 agents to dealing with 3. Changed 1 homeowners policy and 1 vehicle to maintain and/or lower premiums. Business policies and all other vehicles stayed with same companies I had. Well low and behold, the 2 policies I changed have now increased 15% upon renewal. Haven't received billing on the old policies yet to see where they shake out, but I'm sure it will be increases. I really don't want to go thru this whole BS insurance shopping again - like the Govt WFH thread, it wears a person down.

 

[PeoplesElbow]

This time last year, I spent hours talking with insurance salespeople trying to lower my premiums because of the huge increases I was experiencing with my current insurers. I went from dealing with 2 agents to dealing with 3. Changed 1 homeowners policy and 1 vehicle to maintain and/or lower premiums. Business policies and all other vehicles stayed with same companies I had. Well low and behold, the 2 policies I changed have now increased 15% upon renewal. Haven't received billing on the old policies yet to see where they shake out, but I'm sure it will be increases. I really don't want to go thru this whole BS insurance shopping again - like the Govt WFH thread, it wears a person down.

I have a friend that is an actuary, he told me a lot of the increase of the last 10-15 years is the increase in the number of claims they have to pay to replace people's roofs. Apparently it is much more common now for the insurance to pay to replace a roof on a house vs people paying to have their roof replaced on the east coast.

 

[TPD]

I have a friend that is an actuary, he told me a lot of the increase of the last 10-15 years is the increase in the number of claims they have to pay to replace people's roofs. Apparently it is much more common now for the insurance to pay to replace a roof on a house vs people paying to have their roof replaced on the east coast.

my neighbor is an estimator for a roofing company so I've heard the stories of the back and forth between homeowners and insurance adjusters over roof replacements. The insurance companies don't see it the same way the homeowner sees it. I would never expect my insurance to replace my roof over some of the silly things I've heard. Maybe if a tree goes thru the room, I may call the insurance company - maybe. Depends on how bad the damage is. I think in the 30+ years I've lived in my house, I've only had one or 2 claims against my homeowners insurance, and they were for damaged electronics due to lightning strikes. I think I've increased my deductible to $5,000 to try to lessen the premiums. I look at homeowners insurance as catastrophic replacement - fire, hurricane, tornado, etc. I'm not calling them for a failed refrigerator and $300 worth of spoiled food or some dings in my roof because of a bit of hail.

 

[PeoplesElbow]

my neighbor is an estimator for a roofing company so I've heard the stories of the back and forth between homeowners and insurance adjusters over roof replacements. The insurance companies don't see it the same way the homeowner sees it. I would never expect my insurance to replace my roof over some of the silly things I've heard. Maybe if a tree goes thru the room, I may call the insurance company - maybe. Depends on how bad the damage is. I think in the 30+ years I've lived in my house, I've only had one or 2 claims against my homeowners insurance, and they were for damaged electronics due to lightning strikes. I think I've increased my deductible to $5,000 to try to lessen the premiums. I look at homeowners insurance as catastrophic replacement - fire, hurricane, tornado, etc. I'm not calling them for a failed refrigerator and $300 worth of spoiled food or some dings in my roof because of a bit of hail.

Unfortunately it isn't what you claim, its what everyone claims. After every storm there are guys going door to door to give you a "free storm damage assessment" now.

 

[LightRoasted]

For your consideration ...

This time last year, I spent hours talking with insurance salespeople trying to lower my premiums because of the huge increases I was experiencing with my current insurers. I went from dealing with 2 agents to dealing with 3. Changed 1 homeowners policy and 1 vehicle to maintain and/or lower premiums. Business policies and all other vehicles stayed with same companies I had. Well low and behold, the 2 policies I changed have now increased 15% upon renewal. Haven't received billing on the old policies yet to see where they shake out, but I'm sure it will be increases. I really don't want to go thru this whole BS insurance shopping again - like the Govt WFH thread, it wears a person down.

As I've said in the past, all insurance rate increases are the barometer of the actual annual inflation rate. Claims really do not come into play here at all, when one factors in .... deductibles, partial claim or whole claim dis-allowances, and the adjuster's final number that the insurance company is willing to pay, which is always a low number never making one whole. It is a racket because, ya know, shareholders?

Oh yeah, and now throw in AI claims, software adjusting, into the mix and wham-o.

Over the years, you pay in $5 to maybe get $1 back from claims, if you are lucky.

 

[PeoplesElbow]

For your consideration ...





As I've said in the past, all insurance rate increases are the barometer of the actual annual inflation rate. Claims really do not come into play here at all, when one factors in .... deductibles, partial claim or whole claim dis-allowances, and the adjuster's final number that the insurance company is willing to pay, which is always a low number never making one whole. It is a racket because, ya know, shareholders?

Oh yeah, and now throw in AI claims, software adjusting, into the mix and wham-o.

Over the years, you pay in $5 to maybe get $1 back from claims, if you are lucky.

I was ready to have my roof replaced, it was 23 years old, this past June we had a storm ripping several squares off the top of my house. I called the insurance company because I figured what the hell I'll get their input. They ended up paying everything for roof replacement itself, my house was old enough that all the decking needed replaced, that is all I had to pay for, the 1970s plywood had seen better days.