Sigh, homeowners insurance rates

[Genie+]

Homeowner insurance is pretty low here. It is dwarfed by property tax bill. Our annual on the homeowners cost is same as monthly property tax lol.

 

[FamilyGuy]

One other thing to consider is to increase your deductible. The way insurance companies are willing to drop or increase rates anytime you make a claim, we have determined we would only file a claim for big issues. We raised our deductible to $7,500 and that really made the premium more bearable. This may not work for everyone, but it works for us.

At this point you are self insuring for all but the most catastrophic claims. Even if there is a 10 or 12k loss, I may still not file a claim if my deductible is $7500… and self insuring is a great way to go as long as you can comfortably handle the loss (in the event it occurs).

 

[morgan98]

At this point you are self insuring for all but the most catastrophic claims. Even if there is a 10 or 12k loss, I may still not file a claim if my deductible is $7500… and self insuring is a great way to go as long as you can comfortably handle the loss (in the event it occurs).

This is exactly the case, and that is the way we see it too. We would probably not file a claim for under $15-$20k. Also, interestingly enough, the annual premium did not drop as much as we thought even if we were worth increasing the deductible more. From our research, the $7,500 was more or less of the "sweet spot" in terms of being a premium we were happy with.

 

[MrsJackSparrow4Life]

Our car insurance rate went up before our home owner's insurance did. Went from $1600 for the year to $2400 and the only claim we had over 6 years was for a $60 rock chip. I immediately started comparing prices and Allstate was able to offer me $1400 for the year with better coverage and they lowered our HOI from $900 per year to $600. I'm curious to see what the prices are for the next year.

 

[barkley]

Our car insurance rate went up before our home owner's insurance did. Went from $1600 for the year to $2400 and the only claim we had over 6 years was for a $60 rock chip. I immediately started comparing prices and Allstate was able to offer me $1400 for the year with better coverage and they lowered our HOI from $900 per year to $600. I'm curious to see what the prices are for the next year.

I was VERY surprised last year when we got rid of our 2006 vehicle and bought a 2024 that our premium decreased (even with higher coverage than the one we dropped).

 

[georgina]

I was VERY surprised last year when we got rid of our 2006 vehicle and bought a 2024 that our premium decreased (even with higher coverage than the one we dropped).

Wow, ours didn't. Just got the auto insurance info today. We bought a new car in Feb, the rate is understandably much higher than the old one, but the rate on the 2.5 year old car also went up 40%. Both of our cars are listed at less than 8500 miles per year.

 

[georgina]

Ours went up because the value of our house, and therefore the cost to rebuild it, went up. The downsides to homes appreciating in value is higher insurance premiums and higher taxes. *sigh*

The replacement value of our townhouse as listed in the policy only increased 2%, I guess they are saying the building costs are 40% higher? Plus it has a ridiculously high number for personal property and lists a value for 'other structures', which we don't have. I am definitely planning to talk to my agent and get some outside quotes.

 

[peder]

I had a shock this year for our homeowners insurance. Our rate went down significantly, I live in So Fla and rates have been through the roof after all the storms in Fla the last few years. My 2024 renewal was around $9000 and this year same exact policy with the same company was $3600. I actually dreaded opening the renewal when it came in the mail so I let it sit on the counter a few days. I about fell over when I opened it and saw how much it went down. I paid that bill so fast in case it was an error . I told my agent that and she said it made her laugh but it wasn’t an error they repriced our area. I paid that rate in 2020. I’m using the extra savings towards a Disney cruise.

Rates in Nebraska have been crazy also. A few big hail storms and tornadoes with a small population base along with rising prices and it's just so much money on insurance. Even with what feels like an impossibly high deductible, too.

I genuinely don't understand how average households can afford homeowners insurance in this state right now.

 

[barkley]

Wow, ours didn't. Just got the auto insurance info today. We bought a new car in Feb, the rate is understandably much higher than the old one, but the rate on the 2.5 year old car also went up 40%. Both of our cars are listed at less than 8500 miles per year.

I don't understand it. I just got the renewal today and it's gone DOWN even more (about 5%). the only thing I could find out when I did a Google search on the subject is that some older vehicles cost much more to repair AND some newer have much better safety features which present a lower risk factor.

The replacement value of our townhouse as listed in the policy only increased 2%, I guess they are saying the building costs are 40% higher? Plus it has a ridiculously high number for personal property and lists a value for 'other structures', which we don't have. I am definitely planning to talk to my agent and get some outside quotes.

def. check on the 'other structures'-we have it but that's b/c we have a couple of small sheds. we got our renewal today and they upped our replacement and personal property by 10%, our 'extended replacement costs' by a good deal more (which given the way prices have surged on building materials over the past handful of years I appreciate). I imagine one of the things that plays into the increase in personal property coverage is b/c it would be what pays for appliances and anything not permanently affixed to the home (as was explained to me when I asked about it at one point) so when I start adding up the appliances, the water filtration/softner, the generator...it ADDS up. the largest increase in coverage though-the amount they cover for temporary housing. I feel VERY fortunate to pay a small fraction of what others on this thread have quoted for their homeowners so the 20% increase for this renewal is not much at all.

 

[georgina]

Apparently the other structures and personal property amounts are just something they include, based on the replacement value of the house. Dumb. I did increase the deductible to reduce the rate considerably.

So we have Erie insurance, which has something on the auto policy called rate lock, which prevents it from going up for 3 years. Except, because we bought a new car this year, they rerated the entire policy for both cars, resulting in a huge jump for the older car. Supposedly the rate will stay the same for the next 3 years barring any claims.

 

[SweetPeasMom2]

Insurance companies trying to adjust for the rising cost of everything over the last few years is like trying to turn the Titanic around. It's not something that happens as quickly as they'd like. The companies have to submit the rate requests to the states, it gets reviewed, sent back etc. So sometimes it can take 1.5-2 years before they get approval for the increase. This is one of the reasons many are seeing jumps over the last year. It is most likely a response from the pricing from the last several years.

You should expect the coverage amount of your home to increase each year as well. Not just the rate but the cost to cover it if it were to be a total loss. This does not always correlate with the market value of your home. The resale value includes the land value (insurance does not pay for dirt) and lots of time amenities of where you live.

Most times bundling will give you the best rate. There are times where it doesn't.

Most policies, other structures and personal property is a % of your dwelling coverage. Talk with your agent. It's possible to lower them. There will be a minimum amount they will have to cover but it might help some if you think you have more coverage than needed in those areas.

If you can stomach a high deductible, that too can help.

 

[barkley]

Insurance companies trying to adjust for the rising cost of everything over the last few years is like trying to turn the Titanic around. It's not something that happens as quickly as they'd like. The companies have to submit the rate requests to the states, it gets reviewed, sent back etc. So sometimes it can take 1.5-2 years before they get approval for the increase. This is one of the reasons many are seeing jumps over the last year. It is most likely a response from the pricing from the last several years.

You should expect the coverage amount of your home to increase each year as well. Not just the rate but the cost to cover it if it were to be a total loss. This does not always correlate with the market value of your home. The resale value includes the land value (insurance does not pay for dirt) and lots of time amenities of where you live.

Most times bundling will give you the best rate. There are times where it doesn't.

Most policies, other structures and personal property is a % of your dwelling coverage. Talk with your agent. It's possible to lower them. There will be a minimum amount they will have to cover but it might help some if you think you have more coverage than needed in those areas.

If you can stomach a high deductible, that too can help.

all excellent points. I will add-if you can handle paying your premium on a YEARLY vs. monthly basis (in most cases done via your mortgage payment) you can get a nice discount as well. when we had a mortgage we were able to get the lender to agree to this with the cooperation of the insurance company-they verified we were prepared/money in hand to pay for an entire year's premium so the lender discontinued paying monthly and verified with the insurance company yearly that we were paid in full for each subsequent year.

 

[ruadisneyfan2]

all excellent points. I will add-if you can handle paying your premium on a YEARLY vs. monthly basis (in most cases done via your mortgage payment) you can get a nice discount as well. when we had a mortgage we were able to get the lender to agree to this with the cooperation of the insurance company-they verified we were prepared/money in hand to pay for an entire year's premium so the lender discontinued paying monthly and verified with the insurance company yearly that we were paid in full for each subsequent year.

Our mortgage company always paid annually for our insurance. We still paid it monthly in the form of an escrow payment but I'm glad they didn't feel the need for monthly payments. I always pay whichever method is the least expensive overall.

 

[greeneyedchick]

I had a shock this year for our homeowners insurance. Our rate went down significantly, I live in So Fla and rates have been through the roof after all the storms in Fla the last few years. My 2024 renewal was around $9000 and this year same exact policy with the same company was $3600. I actually dreaded opening the renewal when it came in the mail so I let it sit on the counter a few days. I about fell over when I opened it and saw how much it went down. I paid that bill so fast in case it was an error . I told my agent that and she said it made her laugh but it wasn’t an error they repriced our area. I paid that rate in 2020. I’m using the extra savings towards a Disney cruise.

What company? I'm in central Fl and paying $10,000 a year. When we moved here 7 years ago, I think it was only $3000 or so. We're having crazy jumps. Since the law says they can't raise rates if you file a claim, the company raises rates on everyone in a zip code if they've had too many claims in that area. I have also seen posts on nextdoor of companies sending out non-renewal letters to people because their were too many claims in their area (even if the individual never filed a claim). It's an awful situtation.

 

[princesscinderella]

What company? I'm in central Fl and paying $10,000 a year. When we moved here 7 years ago, I think it was only $3000 or so. We're having crazy jumps. Since the law says they can't raise rates if you file a claim, the company raises rates on everyone in a zip code if they've had too many claims in that area. I have also seen posts on nextdoor of companies sending out non-renewal letters to people because their were too many claims in their area (even if the individual never filed a claim). It's an awful situtation.

Frontline, I have been with them for about 7 years ever since we got kicked off of Citizens.

 

[SweetPeasMom2]

all excellent points. I will add-if you can handle paying your premium on a YEARLY vs. monthly basis (in most cases done via your mortgage payment) you can get a nice discount as well. when we had a mortgage we were able to get the lender to agree to this with the cooperation of the insurance company-they verified we were prepared/money in hand to pay for an entire year's premium so the lender discontinued paying monthly and verified with the insurance company yearly that we were paid in full for each subsequent year.

Most mortgage companies pay it in full at renewal. Then you as the homeowner are paying it in the form of monthly payments to the mortgage company back to your escrow. Now, some companies offer a discount for paying in full and will apply that discount even if it comes from the mortgage company. Some won't and if you want that discount, you can opt to pay it your self vs through escrow.

 

[Mackenzie Click-Mickelson]

This does not always correlate with the market value of your home.

It almost always is completely and utterly different numbers. Replacement cost of a home and market value of the home are two entirely different metrics. Not that I'm explaining this technically to you but responding to the "does not always correlate" because it usually doesn't correlate. When I was at the insurance company goodness me the amount of calls I would get from agents who would be passing along the message that their insured didn't understand why the home couldn't sell for what it was being insured at was a lot, it's because to the homeowner that's the number they can most relate to but they aren't considering all the things that would go into rebuilding their house should it have to be done.

Presently with our home we have it insured for approximately $200K more than what our house was considered Market Value (which by law is re-evaluated each January 1st) although that difference will change a bit come January 1st when the new market value of our home is done (we won't know those figures until usually March or April). We could lower coverage without a doubt but at the same time we also know it's expensive in things like lumber, labor, updating codes (although our house was built in 2014 some codes have already changed since then including HVAC systems), and of course all the belongings at the home.

You should expect the coverage amount of your home to increase each year as well.

It depends on the product the insured has. It also depends on optional coverages the policy has.

Not all policies increase automatically year to year on the Dwelling (and subsequent coverages), it would need to be written that that is the way the product is. It often is the reason why insureds find themselves underinsured when a loss occurs for this very reason that the policy did not update on the Dwelling coverage over the years to accommodate increase in costs. It's also why it's important to review the coverage every year and also ensure if you've done any updates to your house that its accounted for in that figure. If you've finished your basement for example that needs to be updated in your policy so things like carpet (if that is in there), livable square footage is updated, personal belongings coverage can be reviewed and increased if needed and more.

As an optional coverage we have always had on our policies is inflation guard which increases the coverage accordingly to account more for things like materials increased in costs, labor costs, availability, etc. It's also why our homeowners insurance coverage is typically a decent amount more than market value has ever been. Some insurance companies can have this wrapped up in the policy coverage (although it may not always be the number the insured is wanting it to be), others don't. It's an important distinction between telling someone they should expect the coverage amount of the home to increase each year because I saw far too many insured be suddenly surprised the fire destroyed their home, the tornado destroyed their home and they were not full insured (even with replacement cost coverage) for the event because the Dwelling wasn't high enough and hadn't been reviewed over the years.

The resale value includes the land value (snip) and lots of time amenities of where you live.

It heavily depends on what your area is in meaning a seller's market or a buyer's market. It also may not have much to do with amenities at all. But the desirability of one's area can influence the willingness or non-willingness to buy someone's home at the price that the seller has it at. That may or may not include any perceived amenities. My metro has been in a seller's market for more than 10 years now, we had our house built 11 years ago when it was a buyer's market. That fact influenced pricing more than any amenity out there. The correlation you can make is if you're in a more desirable area you can expect to pay more than a house in a not so desirable area, but the value of the home is very much about the power the seller has or doesn't have. A house's amenities may not change in the least but could have drastically different selling prices in a seller's market than a buyer's market (such has been the case in our metro quite a lot).

 

[Mackenzie Click-Mickelson]

the only thing I could find out when I did a Google search on the subject is that some older vehicles cost much more to repair AND some newer have much better safety features which present a lower risk factor.

Your VIN tells a lot more about your vehicle than you think. HLDI (Highway Loss Data Institute) was a resource we ran people's VINs through, you can input your own VIN if you'd like to see what information comes back.

Newer vehicles can cost more but can cost less. It is about safety features but other things go into like costs to repair the car, the damage it may cause to other cars, theft rates, etc.

A thing people don't think about is something like a uni-body truck. That is a newer way of manufacturing a truck but in the event of damage is incredibly difficult to repair. It's not like you can just replace a quarter panel and move on. Thus a newer truck even over the years as it ages can be more.

Older vehicles don't always cost more either. Availability of parts can influence this too and the damage it may cause or sustain.

The other thing to consider that has become more and more relevant is the model year as car manufacturers have done a lot more shifts on models than before so. From safety ratings to theft preventions and more so someone can have a newer model, swap it out for a year older model and may pay more or the reverse is the case. It's just people automatically think newer=more expensive on a logical level but there's just a lot more into for your own insurance rate than that.

For us for example we have a 2023 Hyundai Santa Fe (not impacted by the theft issue by means of not installing what they should have installed) but when we looked at that same vehicle same trim level in 2021 one thing that was not there that was standard by 2023 was cameras on the side that activate when the turn signal is engaged. Before in 2021 that was only something in the next level or one above that's trim level. That is an increased safety feature The design of the car is now different in 2025 models. It's just a short time period now that cars change and shift whereas in years prior you probably had a longer time period of the car's model not changing as much year to year. Thus nowadays the exact model years can have more of an impact than years ago.