Homeowners Insurance DOUBLED!!!!

[timandlesley]

I am SO frustrated and need some help. I have TONS of questions but of course our mortgage company isn't open.

We escrow our home owners insurance into our monthly mortgage payment. Allstate sent me our renewal quote today and it was DOUBLE the amount of last year, when I called and asked why they said "insurance rates in your area have risen dramatically"
My questions:
1). Since it is going up this much will we have to pay a ton out of pocket initially (our policy ends and renews on april 15th at the new rate).
2). If we shop around and find it cheaper elsewhere do you have to pay something down if you escrow or does it take care of itself?
So many questions and no one to ask, I'm REALLY stressing out.
HELP!
Lesley

 

[kathie859]

It's time to shop for more reasonable insurance. Your mortgage company doesn't care who you have insurance with--just that you HAVE it

To answer your questions:

If the mortgage company has already paid the higher premium, you'll have to cancel your current policy and get the refund sent back to you or to the escrow department and then another (hopefully much lower) annual premium will have to be paid. You may have to pay it out of pocket (or at least pay a small amount to bind the policy) to allow time for the cancelled policy premium to come back to you or escrow department.

If you change insurance companies call your mortgage company and talk to the escrow department (be sure to get names and call back info!) to let them know that you are changing carriers and to get their take on the easiest way for you to handle it.

Good luck (BTW, I'm right across the river from you! Hi, Neighbor)

 

[timandlesley]

It's time to shop for more reasonable insurance. Your mortgage company doesn't care who you have insurance with--just that you HAVE it

To answer your questions:

If the mortgage company has already paid the higher premium, you'll have to cancel your current policy and get the refund sent back to you or to the escrow department and then another (hopefully much lower) annual premium will have to be paid. You may have to pay it out of pocket (or at least pay a small amount to bind the policy) to allow time for the cancelled policy premium to come back to you or escrow department.

If you change insurance companies call your mortgage company and talk to the escrow department (be sure to get names and call back info!) to let them know that you are changing carriers and to get their take on the easiest way for you to handle it.

Good luck (BTW, I'm right across the river from you! Hi, Neighbor)

Hello neighbor. Well, they haven't paid the higher premium at all, we just got the proposal today so the escrow account was based on the half priced old policy, that is what scares me. Since it is doubled how much am I going to have to pay out of pocket up front to catch up our escrow account? Any ideas of affordable home owners insurance companies?
Lesley

 

[StephMK]

I would take out last year's policy and compare it to this renewal. It doesn't sound right that it completely doubled, make sure your coverages are similar. Did they take away any discounts you had last year? You can shop by getting quotes from other places like State Farm, Nationwide or go to an independent agent and they can shop lots of other carriers.

When we switched carriers a year ago, there was a place online where I could switch the insurance carrier for renewal. I'd either look online or call to notify them NOT to pay the Allstate bill until they hear back from you.

We had very good luck changing to AAA homeowers insurance, much lower than anyone else I tried. Also, I have had good luck getting good house quotes from independent agents. Their auto rates seem higher but could quote homes lower in my experience.

Don't panic just yet, it can probably be reduced by moving it to someone else. Good luck!!

 

[kathie859]

Just tried to send you a PM...not sure it went though

I'm a Fifth Third mortgage loan originator and have some suggestions for you.

If you don't get the PM, let me know.

 

[kydisneyfans]

I am an hour south of you and ours went up by about 1/3 with Liberty Mutual. I also received the same excuse. Everyone I am talking to around here about it are saying their rates are up 25-50% with no known reason.

I wish I could get a raise like that every year.

 

[ruadisneyfan2]

We have AAA for car and homeowners. It's gone up a little but def not double. Now is perfect time to shop around before you renew. Do it asap before the mortgage company pays the bill.

 

[KerBear]

I would definitely shop around, try an independent agent since they will be able to search multiple carriers for you saving you the time of doing it yourself. I work in Mortgage servicing and I know rates go up, but that is ridiculous and I advise customers all the time when I see something like this happen to do some shopping. One thing I have learned is that if an insurance company is planning to stop doing business in a certain area they often begin by raising rates drastically, I don't know the reason for this, maybe fewer customers to get rid of after most people change companies? G

Also do check with your mortgage company for their procedures in this situation since it can vary. My company will pay the second premium even if the higher one was already paid, but you have to get the refund from the first back into escrow as soon as you receive it to avoid a shortage. Also if you don't find a lower priced policy and your premium doubles you may be able to spread the "shortage" over 12 months instead of having to come up with it all at once, it depends alot on your mortage company.

Good luck, I hope you find a better priced policy!

 

[Kay1]

Ours went up, too. We had to write a pretty big check but I doubt we could get a cheaper policy as we have USAA. Sorry, timandlesley, and the best of luck to you.

 

[nicki.momof3]

I live in Michigan and the same thing happened to us a few months ago. We have never had a claim in 10 years and nothing has changed on our home. We have also never been late on a payment.

We got the excuse. I shopped around and found AAA had a better policy for $150 less than our original policy amount.

 

[timandlesley]

Thanks guys, I'll definitely be making calls tomorrow to shop it. Can you get AAA even if you aren't a AAA member?
Thanks! I'll let you know what I find out.
Lesley

 

[ExPirateShopGirl]

You join when you get the policy. Definitely worth it. I have AAA for house and cars. The homeowner's policy has gone up about 40% since I've had the house... about 10 years. Auto policy hasn't gone up even 10%. Granted, I've never filed a claim on either.

Thanks guys, I'll definitely be making calls tomorrow to shop it. Can you get AAA even if you aren't a AAA member?
Thanks! I'll let you know what I find out.
Lesley

 

[Derby4me]

I'm a Fifth Third mortgage loan originator and have some suggestions for you.

Small world...I worked at Fifth Third also (Until I decided to be a SAHM 6 months ago)

Allstate did the same thing to me last year. I would shop around and also call your agent to let them know you will be shopping around. Suprise, suprise they were able to put me into a far less expensive package with the same coverage.

Another WONDERFUL Allstate story...
2 weeks ago I received a notice from the "Good Neighbor" company of non-renewal on my home owners insurance. No explination and we have made NO claims in the entire 6 years that we have been insured by them. After a call to my agent it was established that they did another inspection of my property because they changed my homeowners insurance package last year (due to their price increase). I have a second floor balcony that does not have a railing. Never has had one and was not an issue when the issued a policy 6 years ago. Instead of doing good business and sending me a note stating that they noticed the lack of a railing and that this is now an issue, they send a non-renewal notice. I don't really have an issue with putting up a railing (especially with a one year old at home) but the $1,500 estimates I have received would be a SERIOUS problem for LOTS of families. Unacceptable. A "Good Neighbor" would work with their customer to have the issue resolved. Currently shopping for homeowners and auto due to their bad business practice.

 

[KristiMc]

We live in North East Ohio and our Nationwide policy went up about 20%. Our agent actually called me before I had a chance to call him. He said that all of Ohio increased. One main reason was the theft and damages that are being done to foreclosure homes. People are going in and stealing the copper.

 

[DVC-Don]

............

Allstate did the same thing to me last year. I would shop around and also call your agent to let them know you will be shopping around. Suprise, suprise they were able to put me into a far less expensive package with the same coverage.

Another WONDERFUL Allstate story...
2 weeks ago I received a notice from the "Good Neighbor" company of non-renewal on my home owners insurance. ............

You got the wrong company (in bold). Allstate is "Your in Good Hands". State Farm is the Good Neighbor.

 

[budbeerlady]

Shop around! We look around every couple of years just to make sure we are paying a fair rate on the house and car.

 

[Derby4me]

You got the wrong company (in bold). Allstate is "Your in Good Hands". State Farm is the Good Neighbor.

Woops!! Well I'm not in good hands either!! Sorry to you all Stater's...my bad!

 

[speedyf]

I would also price out different deductibles. We were able to save about $600 per year by going to a $2500 deductible.

The reason I did this was because of an incident in our 3 year old home. We had a leaking pipe in a wall because of a drywall screw that hit the pipe during construction. I guess the screw was actually holding the water in the pipe, but eventually (over 3 years) the screw rusted and there was a slow leak in the wall.

I talked to my insurance agent about it and estimated that the cost would be around $2000 to fix. The agent informed me that if I claim a $2000 incident with a $500 deductible that I would get a check for $1500 from the insurance company....but, becuase of the claim...I would lose a "no claims" discount over the next 3 years and my insurance would go up $700 per year ($2100 total over 3 years) until I was eligible for the discount again. So...I would actually lose money by making a claim for $2000.

I went back to the agent and said..."Why do I have a $500 deductible if I lose money on anything I claim $2000 or less?". So...I changed my deductible to $2500 and saved $600 per year on premiums.

I was able to get the dry wall guy to come back out and he fixed all the problems, so it didn't cost me a dollar.

Speed

 

[DVCBELLE]

We live in North East Ohio and our Nationwide policy went up about 20%. Our agent actually called me before I had a chance to call him. He said that all of Ohio increased. One main reason was the theft and damages that are being done to foreclosure homes. People are going in and stealing the copper.

That makes no sense...

if I default on my mortgage and it goes into foreclosure and I no longer own the home - then why would my homeowner's insurance pay for damage done to the home?!!?! That really doesn't make any sense to me.

I would think it would have more to do with the wind storm and everyone getting new roofs!

For those of you looking for new insurance - my DHs best friend is an independent agent. He shops around for us every year and gets us the best deal. He knows how to bundle our services together so we get a discount when we get our car and home insurance together. I would reccomend looking for an independent agent in your area who knows how to look for the best deals rather than trying to deal with each individual company!

 

[dawson5]

http://homebuying.about.com/od/4closureshortsales/qt/110507_Fixtures.htm

What Happens to Sellers Who Strip Their Homes?

According to a representative from Downey Savings and Loan, it's the home owner's insurance companies that are most likely to pursue and prosecute sellers who vandalize or strip their homes while in foreclosure. When the bank receives title to the home through foreclosure proceedings, many banks submit an insurance claim to the existing insurance company to cover damage and missing real property items.

Insurance companies then actively go after the sellers because the company has faced a loss due to the seller's intentional behavior. Believe me, insurance companies are relentless, committed to collection and will prosecute to the fullest extent of the law.

I am wondering what is going to happen in our area to our rates. We were hit with a nasty hailstorm, lots of damage/claims. Even though it is an act of God, I wonder if we'll be hit with a rate increase.