Home Insurance went up 50%

[Randomsaver]

Grrrr. I got the mail last week and opened it yesterday and lo and behold . . a 51.5% increase. I called my agent and asked why and he said he sees inflation. So I calculated the inflation and it was 4%. I wrote him an email about this and is waiting for response. If they'll play at a ratio of 50:4, after 15 years, I'd end up paying a home insurance equal to the price of the house!

[ua_guy]

Sounds like it's time to shop other carriers and get new quotes.

I don't think agents truly know why premiums go up sometimes. The risk models are calculated by the underwriters and there are a lot of complex factors and models at play there.

[disneysteve]

Sounds like it's time to shop other carriers and get new quotes.

I don't think agents truly know why premiums go up sometimes. The risk models are calculated by the underwriters and there are a lot of complex factors and models at play there.

Definitely time to switch companies. And I agree that asking the agent is worthless. He/she has no idea.

[JoeP]

So with the inflation excuse, does that mean that your $1000 claim will be paid out as $1500?

[snafu]

Randomsaver, when did you last review your insurance to see if it was appropriate coverage for the value of your home? What is your deductible? Do you have full 'replacement' ? Is your stuff insured if offsite, like taking your laptop with you on vacation or business travel? Do you have appropriate coverage for anyone injured while on your property? With an agent that responds inappropriately, you may as well use an electronic insurer.

I hope it's ok to point out your insurance coverage needs to be based on the replacement cost/current price of your home [not land value]; there is no relationship to the initial cost of the house. Try to imagine if there was a house fire or some nitwit drove their car into the house foundation...what would insurance pay?

[Randomsaver]

Sorry for my late response and thanks y'all.

joep, how I wish! but they increased my coverage for only 4% but increased my premium for 50%. heck if they'd be fair and increase my coverage as well by 50% I'm all for that!

yes guys I've asked my agent to shop me for best offer -- good combination of coverage and rate but alas he came back to me with just $100 cheaper offer while my personal property coverage gets reduced by 50%.

I went out and contacted companies myself and I got one offer that is same as my premium last year but still cuts my personal property by 50% (or $100K). I'm ok with that since $100K is already enough for me . . . equipment and furniture are getting more affordable (e.g., 3D TV).

I'll let this month pass and activate the new insurance starting May for a clean switch.

one other thought, this is actually the second time my insurance went up substantially. the first was with a different company and that is why I switched. but what ticks me is if I am not diligent in tracking these stuff, I'd get burned since my escrow pays my insurance and my mortgage payments are all paid automatically with an extra supposed to be on the principal.

[snafu]

I suggest t asking your agent to inquire about differences in premium rates when paid annually or semi annually as opposed to escrow. Would you get a further discount if you combined auto insurance with house and content insurance? If the sum saved in premiums is sufficient, you may want to change how payment is arranged.

[normajean]

We switch carriers every few years and often get 50% savings.

[btctony]

I work for a company that sells insurance and I was talking with one of our agents the other day. They were saying the same thing. A few customer complaints over 25-50% rate increases that were not able to be explained by an agent. In one instance the customer even had a better credit score than what was pulled when they originally bought insurance from us. Also, no claims.

I don't work in that department and I certainly don't know everything there is to know about the insurance industry, but I would be shopping around.