Homeowners Insurance Premiums - What's Going On?

[von-mil]

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.

Right. That's what I meant when suggesting I let the existing policy lapse. It would only be after acquiring a new policy to take effect at the same time the old one lapses.

My deductible is at $5000 which I believe is the maximum the policy allows and I have yet to submit any type of claim with this insurance company. There are a couple of independent agents in my general area so I'll probably be giving them a call. Thanks for the replies.

 

[Bird]

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

Me, too, but of course I'm in Texas where ours is already so much higher than most states that it's unbelievable.

 

[newbury]

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.

Good link but I find it hard to believe the sponsors of the bill - it's the Biggert-Waters Flood Insurance
Reform Act of 2012. Glad all I bought is high and dry.

I think it's fair they are phasing out the subsidy on those areas. I've read of several people who welcomed storms because they knew their empty beach shack could be rebuilt into a cozy cottage w/ all the luxuries. Sort of an "arson" type upgrade.

But pay close attention to what the policy covers. We had earthquake damage in Virginia, NOT covered, never mentioned. Estimates to repair ran up to $30K. Finally found one for about $10K. Cost to add the earthquake insurance is about $10 per YEAR in that area.

 

[randy41]

my policy says it covers 94k in personal property. that's a lot of personal property or am i missing something here?

 

[dave1949]

my policy says it covers 94k in personal property. that's a lot of personal property or am i missing something here?

I think that figure is normally a percentage of the structure value. If your house and everything in it burned, I don't think you automatically get 94K?

 

[MacLawn]

Mine hasn't gone up so much over the years. I've been with State Farm for 34 years on house, this year it was $666.00 - right! How'd they pull that number?! I don't think it'd replace me house, but close. I need to review it again. My area of Georgia is not bad for insurance.

 

[tallyho8]

In southern Louisiana, most insurances companies cancelled everyone's homeowners insurance policies after Katrina and quit writing homeowners policies. Most people who were able to get new policies had to pay 200% to 500% more.

After 8 years I was finally able to get a new policy last year after Allstate dropped me in 2005 and it was 400% higher than the old policy. We have never flooded in my area but if I got flood insurance it would be more than my homeowners.