Rates going up 25%

[insurancequestion]

I live in the midwest and my premium on my rental properties have gone up roughly 25%...I haven't had any claims on any of my properties..even my personal property..but my rates have gone up. I have Safeco, I tried to get quotes from other carriers and those rates were more than my current rates. Can anybody specifically tell me why my rates would have gone up that much?

 

[Newby]

Midwest Texas?

I’m not in P&C but every time you turn on the TV the last few years there are protestors peacefully burning down buildings. That can’t help.

 

[wiagent]

Hail is a huge reason and a lot of the companies weren't profitable due to that. If the rentals are in good condition I have a company that I've been moving a lot of Safeco rentals to. Are your houses in WI, IL, or MN? Rentals can be tough and good coverage on them can be expensive.

 

[LostDollar]

I live in the midwest and my premium on my rental properties have gone up roughly 25%...I haven't had any claims on any of my properties..even my personal property..but my rates have gone up. I have Safeco, I tried to get quotes from other carriers and those rates were more than my current rates. Can anybody specifically tell me why my rates would have gone up that much?

Rates going up 25%

or
Rates going up 41%

Caveat, NOT an agent.

Same carrier, Kansas personal property increase (on after discount amounts) 41%.

I have also been wanting to ask about that, but have not yet been ready ask in the two threads
discussing commercial property increases.

 

[marindependent]

Not licensed in your state [I think] but they are mostly on an upward trajectory right now.
Without knowing your exact state you are not going to get much useful information.

 

[Al3x Lee]

I live in the midwest and my premium on my rental properties have gone up roughly 25%...I haven't had any claims on any of my properties..even my personal property..but my rates have gone up. I have Safeco, I tried to get quotes from other carriers and those rates were more than my current rates. Can anybody specifically tell me why my rates would have gone up that much?

It's a highly complex issue.

• Increased reconstruction costs & claims costs - more claims going to trial, so more legal costs
• Bad economy, lower investment returns = Carriers needing to make an underwriting profit
• Increased catastrophic losses - Floods, hurricanes, wildfires, hailstorms, etc.
• Reduced reinsurance capacity

To name a few... by all means, not an all-inclusive list.

It's not your fault, and they're not picking on you, but a risk transfer inherently means that you're in it with everyone else. These factors are outside of your control, and shopping your insurance likely isn't going to help. Carriers aren't looking to provide a discount on new business and are being strict about what they write.

 

[LostDollar]

On a homeowners policy,

Is the number in the box for Coverage A an estimate of sale value or replacement value of the property?

 

[Al3x Lee]

On a homeowners policy,

Is the number in the box for Coverage A an estimate of sale value or replacement value of the property?

Coverage A is for the primary structure, the home. It will never be the market/sale value because homeowners insurance doesn't cover the land or the economic value of the land, just the structure.

The limit for coverage A can also depend on if it's actual cash value or replacement cost, if there's a coinsurance provision, the type of structure, etc.

Now what's the best way to calculate that? No one really knows lol. We use software that estimates it based on the building age, renovations and characteristics.

 

[marindependent]

Coverage A is for the primary structure, the home.

Yep and on many HO policies you want to also calculate in the Ext Rebuild End amount to get a total amount.

Now what's the best way to calculate that? No one really knows lol.

Totally and utterly agree.

 

[LostDollar]

Coverage A is for the primary structure, the home. It will never be the market/sale value because homeowners insurance doesn't cover the land or the economic value of the land, just the structure.

The limit for coverage A can also depend on if it's actual cash value or replacement cost, if there's a coinsurance provision, the type of structure, etc.

Now what's the best way to calculate that? No one really knows lol. We use software that estimates it based on the building age, renovations and characteristics.

Totally and utterly agree.

As a consumer I think I am being more than irritated and doing the search for the guilty party thing.

However, as a poster here, I am pleased to see that comment because it means I am not going to get in trouble in this section with my questions!

Back in 2017-2018, in the senior forum I asked lots of questions because I had given some consideration to becoming an agent, and then briefly considered looking at being a ship counselor. I had a few agents making some angry and bitter posts to me, being upset - I think the general concept of their posts was I was going to steal the secrets of insurance agents and give them away for free.

Coming from that perspective, It's nice to see here that the secrets are so secret not even the agents know what they are.