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Started By
Message
Homeowners insurance increase
Posted on 8/4/14 at 2:46 pm
Posted on 8/4/14 at 2:46 pm
I was looking back at when we bought our house and the insurance was $605 that first year.
7 years later and it's $1,339
That a pretty huge increase when nothing has changed.
What is affecting this increase? age of the home? THere hasn't been any changes to coverages or additions to the house.
and why are they always trying to make the dwelling liability so high? they try to raise it every year. It's supposed to be the cost to replace the house.
They keep making it much higher than my house would appraise for, and if i had a catastrophic event and needed to replace the house, I still have the land and the slab, so why would i need to cover the house for anything close to what i bought it for or what i could sell it for?
7 years later and it's $1,339
That a pretty huge increase when nothing has changed.
What is affecting this increase? age of the home? THere hasn't been any changes to coverages or additions to the house.
and why are they always trying to make the dwelling liability so high? they try to raise it every year. It's supposed to be the cost to replace the house.
They keep making it much higher than my house would appraise for, and if i had a catastrophic event and needed to replace the house, I still have the land and the slab, so why would i need to cover the house for anything close to what i bought it for or what i could sell it for?
14
Posted on 8/4/14 at 2:48 pm to TeddyPadillac
Same could be said for property taxes, gas, food,milk, etc......I could go on forever 
I feel your pain my man
I feel your pain my man
Posted on 8/4/14 at 2:48 pm to TeddyPadillac
quote:If it's not you filing claims, other people are. They keep a low intro rate to get new customers and slowly (or quickly) raise rates of existing to offset.
What is affecting this increase?
This post was edited on 8/4/14 at 2:49 pm
Posted on 8/4/14 at 2:50 pm to TeddyPadillac
Maybe your house and houses nearby have skyrocketed in value
congrats if so
congrats if so
Posted on 8/4/14 at 2:50 pm to TeddyPadillac
Because your agent gets paid on a percentage of what you pay?
You don't have to insure it for what they "value" your house at, tell them how much insurance you want.
You don't have to insure it for what they "value" your house at, tell them how much insurance you want.
Posted on 8/4/14 at 2:51 pm to 90proofprofessional
I know when I moved it to my older home I was shocked how much less people with new homes were paying, you might have lost a discount because of the age of the house.
Posted on 8/4/14 at 2:51 pm to TeddyPadillac
Thanks, Obama.
Posted on 8/4/14 at 2:53 pm to TeddyPadillac
Mine went up $80 over a five year span. And I thought that was bad.
Posted on 8/4/14 at 2:55 pm to TeddyPadillac
there was an article in our paper this morning talking about further, double digit increases that are coming, Flo has to get new tenny boots i guess, but imo, I'm just subsidizing people that are careless, choose to live in high risk areas, or maybe fraud the companies, because I have to be the best client in the world, in all my years of paying premiums I've never filed an auto claim, and I've only filed one homeowners claim for a hail damaged roof
Posted on 8/4/14 at 2:57 pm to jbgleason
quote:
You don't have to insure it for what they "value" your house at, tell them how much insurance you want.
If you want the better policy you do. Problem is many people go independent and they throw numbers at a wall and most people don't have a clue. Make sure its insured for what its worth, not including land.
Secondly, i'd assume your rates are going up b/c your home value is.
I'm not sure who you're with or where you're at but, $605 for a homeowners policy is retarded low. shite $1300 is low for a policy that includes everything you want.
Posted on 8/4/14 at 2:57 pm to FLObserver
quote:
Same could be said for property taxes, gas, food,milk, etc
dont' recall any of those doubling recently.
Gas has been the same price for the last 4 years, and has the most change to it.
The value of my house has changed very little if at all. I think its bullshite that it's doubled since 2011. And there hasn't been a single claim.
Posted on 8/4/14 at 2:57 pm to TeddyPadillac
Your dwelling coverage is likely being inflated yearly
Market value plays no role in replacement value
Home is older, roof is older, everything is older
All companies are raising rates because they can
Market value plays no role in replacement value
Home is older, roof is older, everything is older
All companies are raising rates because they can
Posted on 8/4/14 at 3:00 pm to jbgleason
quote:Yes, you do.
You don't have to insure it for what they "value" your house at
quote:You can do that, within reason, to increase your coverage. Not lower it.
tell them how much insurance you want.
Posted on 8/4/14 at 3:03 pm to TeddyPadillac
So much failure in responses so far. Here is truth:
Yes, it is.
Age of the home does have a very small amount to do with it. It is mostly based on insurance market conditions and claim pay outs. The insurers will charge as much as they need to to cover claim payouts (long term after factoring in investment income for premium held). If you ask your neighbors, they most likely have all experienced the same thing.
It is based on the reconstruction cost of the home, the market value has nothing to do with it. You also have to factor in debris removal, potentially having to rip up the slab and start over, etc. It is not quite as clean as it might sound.
The answer - Use and independent agent and SHOP your insurance at least every two years. Try to keep house, auto's, umbrella together for the best deal as long as it makes sense to do so. I took a 30% increase from my company this year, only found one alternative cheaper....
quote:
hat a pretty huge increase when nothing has changed.
Yes, it is.
quote:
What is affecting this increase? age of the home? THere hasn't been any changes to coverages or additions to the house.
Age of the home does have a very small amount to do with it. It is mostly based on insurance market conditions and claim pay outs. The insurers will charge as much as they need to to cover claim payouts (long term after factoring in investment income for premium held). If you ask your neighbors, they most likely have all experienced the same thing.
quote:
why are they always trying to make the dwelling liability so high? they try to raise it every year. It's supposed to be the cost to replace the house.
They keep making it much higher than my house would appraise for, and if i had a catastrophic event and needed to replace the house, I still have the land and the slab, so why would i need to cover the house for anything close to what i bought it for or what i could sell it for?
It is based on the reconstruction cost of the home, the market value has nothing to do with it. You also have to factor in debris removal, potentially having to rip up the slab and start over, etc. It is not quite as clean as it might sound.
The answer - Use and independent agent and SHOP your insurance at least every two years. Try to keep house, auto's, umbrella together for the best deal as long as it makes sense to do so. I took a 30% increase from my company this year, only found one alternative cheaper....
Posted on 8/4/14 at 3:04 pm to FT
quote:
You don't have to insure it for what they "value" your house at
Yes, you do.
quote:
tell them how much insurance you want.
You can do that, within reason, to increase your coverage. Not lower it.
I've gotten it lowered once, and had to sign somethign saying I was lowering it.
The definition of that coverage is "the cost to replace the home". Slab isnt' going anywhere. Land isn'g going anywhere. When you buy a house for #200k, doesn't mean it cost $200k to build the home minus the slab. If i'm just covering the dwelling, then $150 would more than cover it.
even if my house shot up in value b/c of some outside reason like schools or taxes or whatever, that doesn't change how much it cost to buy wood and other supplies to build the same house on the existing slab.
Posted on 8/4/14 at 3:04 pm to TeddyPadillac
quote:
Home is older, roof is older, everything is older
The roof being the most important part.
Have them look at your replacement cost. If it's inflated tell them you'd like them to look at it.
shite, look at your dec page and see what its insured for.
Posted on 8/4/14 at 3:07 pm to TeddyPadillac
quote:
If i'm just covering the dwelling, then $150 would more than cover it.
From my experience doing this for 6 years, it most likely will not. I agree that having automatic "inflation guard" rolling your limits up every year is stupid, but to say it does not cost more to build things simply due to inflation, the construction market, and having to work in a restoration environment is simply not accurate.
Posted on 8/4/14 at 3:07 pm to HebertFest08
We have a 3 yr old home. First year insurance was $900 something. Last year it was bumped up to $1600, and this year got another increase to $2000 something. Liberty Mutual....they also increased our car insurance, we've never had a wreck or claim on the house. Both have credit scores over 800.
We shopped around and saved about 2k on a new carrier.
We shopped around and saved about 2k on a new carrier.
Posted on 8/4/14 at 3:08 pm to TeddyPadillac
quote:
dont' recall any of those doubling recently.
Guess you havent been to the grocery store lately. Milk is 4.50 a gal. What was it a few years ago? my property taxes has gone up like 1,500 bucks in 2 years
. I havent seen many things drop in prices lately.Posted on 8/4/14 at 3:13 pm to TeddyPadillac
quote:
even if my house shot up in value b/c of some outside reason like schools or taxes or whatever, that doesn't change how much it cost to buy wood and other supplies to build the same house on the existing slab.
No it doesn't...
But, if the cost of materials are rising then yes it does. Again, it all depends on where you are located. If you are in this state then every parish and pieces of said parish are subject to certain rates. There is a wind pool etc... that is taken into account.
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