Homeowner's Insurance Increases are intolerable

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

  1. Mark Holtz

    Mark Holtz Day Sleeper

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    Ouch. The fun of home ownership, as this new home owner in Texas can attest to. (Previously, in California, my mother was the home owner, and i was the tenant. Now, the roles have switched). I made sure to get a good home owners policy plus an umbrella policy plus the cars are under my policy. Still, I got told point blank that I'm going to be replacing my roof every five years due to hail damage.

    Sigh.... have you gotten at least quotes from three different insurance agencies to see if your policy is price competitive?
     
  2. jimmie57

    jimmie57 Hall Of Fame

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    No.
    There is a site you can type in your info and get many estimates. http://www.helpinsure.com/index.html
    This link is only for Texas.

    I have done that and they are inline now that it appears it is an industry wide thing to jump the rates so much.
    I have read a couple of articles that think the insurance will go up by another 50% in the next 3 years.
    In my son's house he has the lower 2 feet of sheet rock removed and the carpet / flooring removed and no one will insure him until that is repaired except the policy that we had.

    My reason for posting is so that people would check their own situation and compare to see if they get the best deal. Most people have a mortgage and do not have a choice like I do for having the insurance.
     
    Last edited: Apr 17, 2019
    Rich likes this.
  3. AZ.

    AZ. Legend

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    From March 2018-
    Home Insurance Rate Increase By State

    What are the driving factors behind these numbers? The biggest culprit is bad weather. Natural disasters are both more frequent and costlier. According to the UN's disaster monitoring system, the number of disasters worldwide has quadrupled since 1970. A study by the National Centers for Environmental Information found that 2017 was by far the most expensive year for disasters in America. With damages exceeding $300 billion, 2017 eclipses the record of $214.8 billion in 2005, the year of Katrina.

    Expensive and frequent disasters are taking a financial toll on homeowners across the country. Let's take a closer look at the states with the biggest home insurance rate jumps.
     
  4. jimmie57

    jimmie57 Hall Of Fame

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    Thanks,
    but It does not look accurate at all. It shows mine up $5xx when in fact it is up over $1,100 in just 1 year. For a 3 year period it has more than doubled.
    Also, how can California's be up less than all but 1 other state with all the devastating fires that they have been having ?
     
  5. SamC

    SamC Hall Of Fame

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    In the USA, unlike most other industries, the states and not the federal government, regulate insurance. This boils down to two things:

    - The types of things that insurance companies are required to do, even if you don't want it. For example, up thread the topic starter expressed a desire to allow people to insure a $200K house for $100K. Sorry, not legal in most states. For a real life example, my daughter lives in Kentucky. When she bought a house nobody would insure it. Why? Well in Kentucky the roof is presumed to be damage free and if it starts leaking or even if just a single shingle flies off, it is automatically covered by the insurance. Result? No insurance company will insure a house with a roof over a year or two old, and the insurance rates are very high because you are in effect paying for a new roof via your premiums every 4-6 years.

    - Courts matter. Sorry, but they do. Remember "homeowner's insurance" is a hybrid form of insurance. Fire and other losses, but also liability. And every time you see a crazy lawsuit result where people sue for silly theories, Y O U pay. Not "big insurance companies" not "the other guy" Y O U via higher insurance rates. Tort reform is way past due, nationwide.
     
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  6. Rich

    Rich DBSTalk Club DBSTalk Club

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    I find it rather odd that NJ is not at the top of that list. Nice. Surprised California is not on the list.

    Rich
     
  7. billsharpe

    billsharpe Hall Of Fame

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    Greatest risk in California is an earthquake and homeowners insurance doesn't cover that. There are a lot of fires, but mostly in rural areas.
     
  8. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    Regarding that survey, it would appear California isn't among the top ten. Yeah, sure.

    We generally don't have tornadoes or hurricanes - we have earthquakes. The compared HO-3 coverage doesn't include earthquake damage. Most can't buy earthquake coverage except through the California Earthquake Authority. Way too many don't have that coverage. In our case the extra cost is about 40% of our homeowners policy.

    Insurance on our home has more the doubled in ten years. With that said, I have to note that the covered replacement value of the house has also increased substantially. And, of course, the insurance companies have noticed a trend - wildfires destroying huge numbers of homes each year because of Climate Change. And we are right in the middle of a forest, albeit a coastal mixed redwood forest.

    We are retired and fortunate that we paid off our mortgage. Nonetheless, we have to budget for insurance, taxes, and maintenance $600.00 a month. When we add utilities including water, sewer, garbage, electricity, gas, internet, TV, cellular, etc. ...well, it more than doubles that number. Owning a home is a major cost but then so is renting.
     
  9. Mark Holtz

    Mark Holtz Day Sleeper

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    The places at major risk for earthquakes is the California coast, which includes San Francisco, San Jose, and Los Angeles. When I used to live in Sacramento, the earthquake risk was much reduced because the soil acted as a shock absorbed, thus dramatically reducing the change of an earthquake, and we didn't have earthquake insurance.

    Where I live in Texas, there is more of a risk of a roof-damaging hail storm than a tornado. I've been told that I should anticipate replacing my roof every five years.
     
  10. Rich

    Rich DBSTalk Club DBSTalk Club

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    Does your insurance cover hail damage? Replacing a roof is pretty expensive, just had mine replaced a couple years ago, cost ~ $8,000.

    Rich
     
  11. Mark Holtz

    Mark Holtz Day Sleeper

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  12. phrelin

    phrelin Hall Of Fame DBSTalk Club

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    The first 12 years of my life I lived in the Sacramento area. We didn't have damage but we felt earthquakes. On July 21, 1952 just before 5 a.m. a 7.3 hit near Bakersfield killing a dozen people. It was felt as far away as Reno, Nevada, and at my house.

    A month later two additional people were killed and dozens were injured in an aftershock. The primary quake caused $60 million in property damage and the aftershock $10 million in property damage, mostly in downtown Bakersfield.

    Yesterday was the 113th Anniversary of the 1906 San Francisco Earthquake.

    And the folks at CalTech using new equipment just published a report that Southern California has an earthquake every 3 minutes - fortunately most are undetectable to anything but that equipment.
     
  13. Rich

    Rich DBSTalk Club DBSTalk Club

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    When I had the roof replaced a couple years ago I would have been thrilled with such a deductible.

    Rich
     

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