Homeowner's Insurance Increases are intolerable

Discussion in 'The OT' started by jimmie57, Apr 13, 2019.

  1. jimmie57

    jimmie57 Hall Of Fame

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    Last year the Insurance on Jonathan’s ( my second son ) house was $1,800.
    This year they raised it to $2,140.
    3 years ago it was $1,379.
    This new price is 50% higher in 3 years.

    The insurance on my house last year was $1,831.
    This year it is $2,979.
    That is an increase of 63% in just 1 year.

    Nothing has changed and no claims filed.

    Since I own both houses ( no mortgages ) I have dropped Jonathan’s and when mine is due, June 1, 2019 I will be dropping it.

    Please check your insurance charges and think about changing companies if you can not get them to reduce the price of it.
     
  2. trh

    trh This Space for Sale

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    After FL got hit with a number of hurricanes back around 2005, insurance companies threatened to pull out of FL (and some did) unless the state insurance commission allowed substantial increases in rates. Which they did.

    Your location right on the coast and near Houston with all the flooding after recent hurricanes is probably the reason.
     
  3. jimmie57

    jimmie57 Hall Of Fame

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    Probably
    But
    I do not think I should be punished with no claims since 1983. Hurricane Alicia took the corner of my roofing off and I had to replace the roof and some sheet rock and carpet. $13,000 worth at that time.
    The time between 1983 and when I moved here in 1972 I had no claims.

    My son's house got water, 2 inches, from Harvey. Since we did not have flood insurance we got nothing from the insurance company.

    I think your history should play a part in the pricing.

    They also use your credit report against you. The lower it is the higher your payment. They say that it is because a person with a low credit report is more likely to miss a payment and or file a claim.
    So they punish you for making claims but do not reward you for a clean record.
    It is just not right.
    If I had the money I would start an insurance company. I would let people choose the Dollar values that they wanted to cover and the deductible. If you had say $100,000 of insurance and had a total loss on a house that cost $200,000 you would get the difference in the deductible and the $100,000.

    I guess you can tell that I really do not like insurance companies.
     
  4. AZ.

    AZ. Legend

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    Well most people dont want to believe anything about weather changing, but the insurance companies sure are paying attention.....Yes rates are going up all over, even if you havent had a weather event yet.

    Out military has talked about it for decades.
     
  5. Rich

    Rich DBSTalk Club DBSTalk Club

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    My first thought was what do you do if one of the houses burns down? I get the higher rate but...

    Rich
     
  6. jimmie57

    jimmie57 Hall Of Fame

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    It is a nasty thought for sure.
    The threat here is wind from hurricanes. If you drop that, you could still have insurance for Fire, etc.

    It would depend on how badly it burned and I would have to decide what to do at that time. I could rebuild one or both of them if I had to do that.
    I could, if it was really bad, sell the property and buy another , smaller house. I really do not need 2204 sq ft for me and my son.

    The flip side is that I only have invested about $140,000 actually invested in the 2 of them together.

    I just have to protest these outrageous increases they are dumping on people.
     
  7. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    I agree. I don't like higher rates but going uninsured is too much risk for me.

    Hopefully a cheaper rate can be found somewhere ... or at least insurance with a high deductible to cover catastrophic losses.
     
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  8. jimmie57

    jimmie57 Hall Of Fame

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    The thing with the high deductible is:
    On the house that the insurance is $2,140 with a $5,000 deductible:
    Changing that to a 10% ( $17,500 ) deductible only dropped the price by $30.
    Plus, you would pay for most things that happened to your house with the deductible that high.
     
  9. jimmie57

    jimmie57 Hall Of Fame

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    If you have a mortgage as most do, this could happen to you like it did me in the late 1970's.
    Insurance and Taxes went up and the bank paid them.
    It was quite a bit more than they had in my escrow account.
    Then they wanted me to pay them back and rebuild the escrow to a new higher level to take care of this if it happened again.
    At that time my house payment included taxes and insurance and was $228 per month.
    To achieve this my payment jumped up over $100 per month.
    I went to the bank and told them I will pay for my taxes and insurance from now on and I will write them a check for the extra that they spent of the banks money to pay the previous payment. They had me sign a form that stated that I was going to pay them and that I would furnish them a copy of the receipt each year.
    Done. They never messed with my payment again.
     
  10. glrush

    glrush Cool Member/Supporter DBSTalk Gold Club

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    Obviously I have not seen your specific policy but one thing to check is if any liability insurance for the property is "baked into" your policy. I know mine does to protect me in case someone falls or is injured etc. on my property. I have an umbrella policy on top of that as well. Just be careful you know exactly what you will be losing if you do decide to completely drop coverage.
    Just my $0.02
     
  11. jimmie57

    jimmie57 Hall Of Fame

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    Thanks. I am sure it does. Along with belongings, etc.
    The only thing they listen to is money. If I do not pay, they get the message even tho I am just 1 soon to be 2 that refuses to let them raise rates with such ridiculous increases. For any other businesses the government would be filing charges against them for Price Gouging.
     
  12. jimmie57

    jimmie57 Hall Of Fame

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    Weather change is a fact of life and will only stop changing when the world explodes,
    or another large asteroid hits us again and blacks out the sun which will probably kill all vegetation and mammals.
     
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  13. RAD

    RAD Well-Known Member

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    Remember insurance rates aren't going to be totally based on your claim record but on the record of all the folks in your area. So if you're in an area that's prone to weather related claims, and your area was hit by one causing a jump in claims, your rates will be taking a hit. That's like when you turned 16 and started to drive, your parents car insurance took a big increase not because you had an accident but because other 16 year old males have a history of making claims.
     
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  14. Rich

    Rich DBSTalk Club DBSTalk Club

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    Fire really scares me. My first wife's aunt and uncle lived in a very nice colonial in an upscale area. They didn't have home insurance for some reason, never got the whole story. They had a small dog and left it in their carport when they went out. During the winter they left a blanket and a drop light in the carport for the dog for warmth. Naturally, the blanket caught on fire and the house burned and the dog was consumed by the fire. I was in the house the next day, what was left of it. The uncle lost his mind and they ended up living in a ratty apartment where the uncle spent his days staring out a window. That was many years ago but I still think about what they did and how things ended up. For a dog's warmth they wrecked their lives. Nothing was left, nothing.

    I understand your outrage. You're a lot braver than I am.

    Rich
     
  15. Rich

    Rich DBSTalk Club DBSTalk Club

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    Wow! Just asked what we pay for...IIRC, we have the house and everything in the house insured for more than 750K...$1500 a year with a $500 deductible. Liberty Mutual Ins. Co.

    Rich
     
  16. Rich

    Rich DBSTalk Club DBSTalk Club

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    Yup, we pay our own taxes and insurance too. For the same reasons.

    Rich
     
  17. Rich

    Rich DBSTalk Club DBSTalk Club

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    I'm a bit worried by what's going on in Yellowstone Park as we speak. That supervolcano blows and we are in deep...stuff.

    Rich
     
  18. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The escrow doesn't bother me. I have had three mortgages in my life and the banks have not messed up the escrow. I was able to choose my own insurance company and they have not missed paying my taxes. The bank doesn't control when the insurance rates or taxes go up - so I can't blame them when the escrow goes up. As long as they get the math right, make the payments on time and don't charge any penalties for me underpaying the escrow I'm happy.
     
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  19. billsharpe

    billsharpe Hall Of Fame

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    I bought a house once in 1968; the bank insisted on an escrow account for taxes and insurance. I refused and found another bank that would let me pay these items separately.

    The first house I owned in 1957 had a monthly payment of $91, including taxes and insurance. Of course I was only earning about $6k per year at the time.
     
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  20. TXD16

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    Last edited: Apr 16, 2019
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