Homeowners Insurance Premiums - What's Going On?

[von-mil]

I just received my homeowners insurance renewal and see that my premium is going up over 24% from last year. The previous renewal - 12 months ago - the premium went up over 23% from the previous year.

Last year's increase was supposedly due in large part to superstorm/hurricane Sandy. This year's increase - I don't know why. My coverages and deductibles have not changed other than the automatic Section 1 (dwelling, other structures, personal property) coverage limits which went up by 2.2%.

How many others are seeing this? Is it time to let it lapse and shop for new insurance? A 53+% increase over a two-year period is pretty hard to tolerate. Looking for your thoughts. Thanks.

 

[dave1949]

I went through that last year. Zero claim history but rates keep going up. I went to an independent agent who shopped around and found better rates from other underwriters. That's all I can suggest to do.

 

[mfreund]

We had American Family for over 20 years and had the same thing. Up over 20%. Went to a independent insurance agent.

My advise call around for quotes!

 

[Larry Caldwell]

The feds are phasing out the flood insurance subsidy. When it's completely gone, homeowners who own in flood-prone areas will be facing flood insurance payments that are as large as their mortgage.

Access Denied

Some policies have already been increasing 25% a year. Starting this year, FEMA will be phasing out subsidies over the next 5 years. That will make many properties unsaleable, since banks will not write mortgages without flood insurance.

 

[blueriver]

Insurance is just one of those things. ... I hate it but may someday need it ... My Allstate rates increase every time ... BUT ... They sure are proud to highlight all my discounts!!

 

[KubotainNH]

I switch insurance companies every few years for this same reason. I don't get why they raise the stuff when I pay out of pocket for the small stuff and there is no big stuff as of yet. Just keep playing the game. At least it's easy to play it with the internet.

 

[randy41]

i just received my homeowners renewal today and its within a few bucks of last year.

 

[buckeyefarmer]

yep, I made a claim for hail damage, they raised the rates.

 

[TnAndy]

Ours is with Erie Insurance. Been with them for 20 years or more. Can't find anyone to beat them.

This is for an HO5 (full replacement costs) homeowner policy. Current 'face' amount if we decided not to rebuild is $220k (which, honestly, I do not think would re-build our house....but hey, they put it on there).

And we are in the worst fire rating district.
(The local volunteer dept is known as the Marshmellow Patrol.....they show up in time to toast the MM's)

1998....$421

By 2005, it was up to $892. I went from a $500 deductible to a $1,000.(The max at that time) We don't do little claims....I'm more than capable (built the house) of handling little stuff.....I just want help on the big stuff.

It went down to $483 the next year (2006)

We had one claim in 2009.....washing machine overflowed, soaked brand new hardwood flooring we had just installed in the dining/living rooms which back up to the kitchen where the laundry closet is located. They were very fair with the settlement amount. Premium went up slightly the next year, but no more than the normal amount.

By 2014, it was going to be back up to $727, I increased the deductible to $2500, it dropped back to $570.

Yes, I've had to increase the deductible, but I think the amount isn't too bad even with that.

 

[EarPlug]

Is it time to let it lapse and shop for new insurance? A 53+% increase over a two-year period is pretty hard to tolerate. Looking for your thoughts. Thanks.

DO NOT let it lapse. That would be a black mark on your ability to get insurance. Get a new policy first and then cancel.