Is This Normal?

[Mark]

To start with I'm not a P and C agent.

I'm tired of every year getting my bill and the price going way up.

Does everyone else homeowners bill go up every year, because they say it cost more to replace it?

It went up another 100 bucks this year. It seems like every year it goes up at least 20%.

 

[Insurance-Guy]

To start with I'm not a P and C agent.

I'm tired of every year getting my bill and the price going way up.

Does everyone else homeowners bill go up every year, because they say it cost more to replace it?

It went up another 100 bucks this year. It seems like every year it goes up at least 20%.

Mark-

I would start by saying if the premiums are going up "only" because of your coverage increasing then best thing that you can do is have a new replacement cost calculator done. I have clients that I know that we could replace the home for less so we sit down and based on the square footage and construction we determine if the home is over insured. You may actually be able to drop you coverage some. This is a slippery slope though. DO NOT underinsure your home. If you have a replacement cost policy the home needs to be insured to value. So use common sense on this if you have a 3,000 square foot home don't try to get it down to $150,000 of coverage A. AND yes some people do, DO that!

Also I would look at caring the highest deductible you can. But with all of the catastrophes that are going on across the country I do not expect homeowner's premiums to be decreasing either…

 

[Guest]

most HO policies increase the dwelling amount 3% every year, so generally, it will increase A LITTLE, not 100 bucks thou.

When was the last time you shopped it out to get some quotes.

in my area, we are required to issue a policy for no less than $125 per square foot, but every area will be different.

also, a number of companies have multiple homeowner policies, for example, the company that gets most of my policies has 5 different HO policies, I refuse to write the lower 3, and almost always write the 4th one, the 5th one, the best of the best policy, very rarely, maybe millionaires need it, internal coverages are all higher, so I am saying, make sure you have the policy you actually need.

What your house is made of will also make a difference, your zip code, and the response of the fire department.

 

[Insurance-Guy]

Also one other thing is if you have done any renovations like new roof, heat and air, plumbing, etc. Make sure to notify your agent for the credits. To be honest I would be shocked if the premium went up that much based on your coverage increasing as well. In my area we have many companies that have switched to ISO protection class. So the legal responding fire department is correct. This can make a huge impact on your rates.

 

[Mark]

Also, it said that those with better credit would get cheaper prices. That they wanted you to have under 11,000 of debit.

What the hell does credit have to do with it?

It comes out of the escrow anyways, so they will get their money ahead of time.

 

[Gulliver]

I'm going to take a different approach.

Roofing is one of the biggest expenses in the Midwest for insurance companies. Roofing is primarily asphalt based and oil has increased rapidly over the past five years. Companies have not collected enough premium on homeowners insurance to support the claim volume and the increased material costs that have went into repairs.

Claim volumes in much of the country have been very high the past ten years. This year is terrible with the Tornado outbreak in Alabama and now Joplin, MO. Joplin alone is over 2 billion. Home insurance unfortunately will go much higher over the next five years.

Think about it. You probably pay 1,000 per year on your premium to repair a home that could cost as much as a half million to replace. Just an example. The figures don't add up when claim activity is higher than what is considered normal.

I could go on and on. In a hurry.

Gulliver

 

[Mark]

The company is Progressive Home Advantage, underwritten by Homesite Ins comp of GA.

After over 1 hour on hold I got someone.

My home is 1890 sq feet. It went from $405 last year to $614 this year.

The coverage amounts really didnt go up much. I think it is because it they changed names from of the midwest to of GA.

 

[xrac]

Shop it! It may just be the company you are with.

 

[BTFuzz]

I agree that you should shop it. But there are many companies taking rate increases on home insurance right now for some of the reasons listed above so you may not find it too much lower.

Do you have it combined with the same company that insures your cars? If not, and it is possible, put them with the same company.

 

[Guest]

I have always considered Homesite a inferior product,

I CANNOT believe you waited on hold for a hour!